Today's business reality increasingly forces business owners to consider accepting payments in cryptocurrencies. Although a virtual currency is not money in the way a traditional currency is, issuing an invoice (faktura) paid in cryptocurrency is legally permitted - the amounts on the invoice, however, are given in złoty or in a foreign currency. The process requires particular attention to the correct invoice elements and to complex tax settlements.
If you decide to accept payments in cryptocurrencies, you need to understand that these operations have a double tax effect. On the one hand, ordinary business revenue arises; on the other - when you later dispose of the virtual currency received - revenue from capital gains (kapitały pieniężne) arises. This duality requires a precise approach to documenting transactions.
Under Polish law a virtual currency is not legal tender, a financial instrument or electronic money. It is a digital representation of value that can be the subject of electronic trading and is exchangeable for legal tender
Definition of virtual currency under Polish law
The Act of 1 March 2018 on Counteracting Money Laundering and Terrorist Financing defines virtual currency precisely. Under Article 2(2)(26) of that Act, a virtual currency is a digital representation of value that is clearly not legal tender issued by the NBP (National Bank of Poland), foreign central banks or other public administration bodies.
The statutory definition also excludes treating a virtual currency as an international unit of account established by international organisations and accepted by individual countries. Nor can a virtual currency be classified as electronic money within the meaning of the Act of 19 August 2011 on Payment Services.
The Act clearly states that a virtual currency is not a financial instrument under the Act of 29 July 2005 on Trading in Financial Instruments. Nor can it be treated as a bill of exchange or a cheque, which clearly distinguishes it from traditional payment instruments. The PIT (personal income tax) Act (Article 5a(33a)) and the CIT (corporate income tax) Act (Article 4a(22a)) refer to this definition. Since 30 December 2024 the MiCA Regulation (EU) 2023/1114 on markets in crypto-assets has applied throughout the European Union, but it does not change the rules on invoicing or taxation, and the Polish act on crypto-assets had not been published in the Journal of Laws (Dz.U.) by November 2026.
A virtual currency must be exchangeable in business transactions for legal tender and accepted as a medium of exchange. In addition, it can be stored and transferred electronically and be the subject of electronic trading
The key point is that a virtual currency is exchangeable in business transactions for legal tender and accepted as a medium of exchange. This feature allows it to be used in commercial transactions, although it does not give it the status of legal tender. The fact that it can be stored, transferred and traded electronically makes it a modern instrument for exchanging value.
Obligations when issuing sales invoices
The Act of 11 March 2004 on Tax on Goods and Services (the VAT Act) regulates in detail the obligations connected with issuing sales invoices. Under Article 106b of the VAT Act, the seller-taxpayer must issue an invoice in specific legal situations.
The basic case requiring an invoice is a sale of goods or services by a taxpayer to another taxpayer or to a legal person that is not a taxpayer (Article 106b(1)(1)). The buyer may be a taxpayer based in Poland or a taxpayer of value added tax or a similar tax from the European Union or from third countries. From 2026 invoices are, as a rule, issued in KSeF (National e-Invoicing System) (obligation from 1 February or 1 April 2026, Article 145l).
Intra-Community distance sales of goods also require an invoice, unless the taxpayer uses the special procedure provided for in EU rules. A similar obligation arises for intra-Community supplies of goods, regardless of the transaction value.
An invoice must also be issued when the taxpayer receives all or part of the payment before the sale of goods or services. The exceptions are intra-Community supplies of goods and certain cases of when the tax point arises
Pay particular attention to situations in which no invoice obligation arises despite receiving payment. This applies to receiving all or part of the payment before an intra-Community supply of goods, before a sale for which the VAT tax point arises on the invoice date, and before supplies of goods for which the tax point arises when the payment is accepted.
Another important exception is VAT-exempt sales, where the obligation to issue an invoice does not arise automatically. The exception is where the buyer requests an invoice, but the request must be made within 3 months from the end of the month in which the goods were delivered or the service was performed.
Mandatory elements of a sales invoice
Article 106e(1) of the VAT Act contains an exhaustive list of mandatory elements that must appear on every sales invoice. Complying with these requirements is key to documenting transactions correctly, especially for invoices paid in cryptocurrency.
The basic identification elements of an invoice are the date of issue and the sequential number, which must be unique within the taxpayer's numbering system. These elements allow the document to be clearly identified in the accounting system.
The identification data of the parties are another mandatory element. The invoice must contain the first names and surnames or names of the seller and the buyer and their addresses. In addition, the NIP (tax identification number) of both the seller and the buyer is required, which makes it possible to check the parties' tax status.
- Prepare all identification data of the seller and the buyer
- Determine the date of sale, performance of the service or receipt of the advance
- Describe the name and type of goods or services in detail
- Give the quantity and unit of measure of the goods or services sold
- Calculate the unit price of the goods or services excluding VAT
- Include any discounts, rebates, price reductions or early payment discounts
- Calculate the net value of the goods or services sold
- Apply the correct VAT rate
- Show the total net value broken down by rate
- Calculate the total VAT amount by rate
- Determine the total amount due
The invoice must contain the date of sale, performance of the service or receipt of the advance, if the payment was made before the invoice was issued. This element is key to determining the tax point correctly
A detailed description of the subject of the transaction requires giving the name and type of goods or services in a way that allows clear identification. You also need to state the quantity and unit of measure of the goods or services sold, which allows the transaction value to be calculated precisely.
The price elements of the invoice include the unit price of the goods or services excluding VAT and any discounts, rebates, price reductions or early payment discounts, if they are not included in the net unit price. This information is essential for calculating the taxable amount correctly.
| Invoice element | Legal requirements | Special notes | Consequences if missing |
|---|---|---|---|
| Date of issue | Mandatory | Must be the actual date | Defective invoice |
| Sequential number | Unique in the system | Chronological numbering | Record-keeping problems |
| Party data | Full data and NIP | Checking VAT status | Defective invoice, correction needed |
| Net value | Excluding VAT | Taxable amount | Incorrect VAT settlement |
| VAT rate | In line with the rules | Correct classification | Incorrect settlement |
| VAT amount | In Polish złoty | Currency conversion | Defective document |
Legal basis for invoices paid in cryptocurrency
The VAT Act allows sales invoices to be issued in Polish złoty or in foreign currencies (Article 106e(11), Article 31a). A cryptocurrency, however, is neither a foreign currency nor legal tender, so the amounts on the invoice are shown in złoty or in a foreign currency, and the cryptocurrency is indicated as the agreed method of payment.
The VAT Act focuses on the economic substance of the transaction: the taxable amount is everything that constitutes payment (Article 29a(1)), including when the buyer pays in cryptocurrency. You can therefore adapt the method of payment to your counterparties' needs, including their preference for paying in cryptocurrencies. Less obvious expenses, such as coffee, tea and water as business expenses, are discussed in a separate guide.
The key provision, however, is Article 106e(11) of the VAT Act, which clearly states that VAT amounts are shown in Polish złoty. This provision makes it mandatory to convert VAT into the Polish currency, regardless of the currency in which the rest of the invoice is expressed.
VAT amounts expressed in a foreign currency must be converted and shown in Polish złoty. The conversion follows the rules for the taxable amount, rounded to the nearest grosz
The rules for converting foreign currencies into Polish złoty are set out in Article 31a(1) of the VAT Act. Where the amounts used to determine the taxable amount are expressed in a foreign currency, they are converted at the average exchange rate of that currency published by the NBP for the last working day before the tax point. Where the invoice is issued before the tax point, the rate for the last working day before the invoice date is used (Article 31a(2)).
Alternatively, the taxpayer may choose to convert at the latest exchange rate published by the European Central Bank for the last day before the tax point. In that case currencies other than the euro are converted using the exchange rate of each of them against the euro.
An important limitation is that the rules on converting foreign currencies do not apply to cryptocurrencies. This means that taxpayers must decide themselves how to convert the value of a cryptocurrency into Polish złoty (to set the number of units to be paid and for records), which can cause additional complications in tax settlements. At the year end, companies must also deal with cryptocurrency in the balance sheet.
Practical aspects of issuing an invoice paid in cryptocurrency
Businesses that decide to issue invoices paid in cryptocurrency are often forced to do so by their customers' specific requirements. This may apply in particular to strategic customers or markets where payments in virtual currencies are widely accepted and preferred.
Issuing an invoice paid in cryptocurrency requires all the mandatory elements provided for in the VAT Act. The invoice must contain the full identification data of the parties, a description of the subject of the transaction, the net and gross values and correctly calculated VAT expressed in Polish złoty. We record such invoices in the VAT records and JPK files as part of our accounting services.
Article 106e(1) and (11) of the VAT Act imply that an invoice paid in cryptocurrency should contain the net, VAT and gross values expressed in Polish złoty (or net and gross in a foreign currency, with VAT in złoty). Only after these values have been shown can you give information about the option of paying in a specific type of cryptocurrency.
An invoice paid in cryptocurrency should contain values expressed in Polish złoty (or in a foreign currency), followed by information on the type of cryptocurrency accepted. The seller converts the total invoice value into the corresponding number of units of the chosen cryptocurrency
Converting the invoice value from Polish złoty into cryptocurrency requires choosing an exchange rate, usually from the invoice date. The rules do not specify its source, so it is worth stating the source of the rate and the conversion method to ensure transparency and to allow the tax authorities to check the calculations.
Just as a bank account number for payments is given on traditional invoices, a cryptocurrency wallet identifier is given for payment in cryptocurrency. This unique address allows the buyer to pay the seller in the specified cryptocurrency.
Documenting cryptocurrency payment transactions requires particular precision. The seller should keep evidence of receiving the payment, including the blockchain transaction record and confirmation that the funds have reached the specified cryptocurrency wallet.
Double tax consequences of cryptocurrency payments
A business that receives payment in cryptocurrency for an invoice must settle it on two separate tax levels. This duality follows from the legal nature of virtual currencies and how they are treated in the Polish tax system.
The first level is ordinary business revenue, which arises on the same terms as when payment is received in a traditional currency. The value of this revenue corresponds to the amount shown on the invoice; an amount in a foreign currency is converted into złoty at the NBP average rate for the last working day before the day the revenue is earned (Article 11a(1) of the PIT Act).
The second level is revenue from capital gains, which arises only when the business disposes of the cryptocurrency it has received. Under Article 17(1)(11) of the Personal Income Tax Act, revenue from capital gains includes revenue from the disposal for consideration of a virtual currency - also when earned in the course of business (Article 17(1g)). Income from this source is taxed at 19% (Article 30b(1a)).
Payment in cryptocurrency for an invoice leads to two types of revenue: business revenue (when the payment is received) and revenue from capital gains (when the cryptocurrency received is disposed of). These are separate sources of revenue subject to different tax rules
Disposal for consideration of a virtual currency covers exchanging cryptocurrency for legal tender, goods, a service or a property right other than a virtual currency. Settling other liabilities with a virtual currency also counts as disposal for consideration (Article 17(1f)) - this applies to the buyer who pays the invoice in cryptocurrency, and to the seller only when it later spends the units received.
An important exception is exchanging one virtual currency for another, which does not create revenue subject to income tax. This rule aims to avoid taxing purely technical exchanges between different types of cryptocurrency.
Accepting payment in cryptocurrency is not in itself a disposal for consideration by the seller - for the seller it is an acquisition of virtual currency. Revenue from capital gains arises only when the units received are exchanged for money, goods or a service or are used to settle liabilities; until then the business shows only the cost of acquiring them.
Tax-deductible costs for cryptocurrency operations
The PIT Act regulates in detail the tax-deductible costs connected with operations on virtual currencies. Under Article 22(14)–(16) of the PIT Act, these costs include documented expenses directly incurred to acquire a virtual currency and costs connected with its disposal.
Tax-deductible costs of disposing of a virtual currency are above all the documented expenses incurred to acquire it. For a business receiving payment in cryptocurrency, the Director of KIS accepts that the acquisition cost corresponds to the value of the service performed or the goods supplied for which it was paid, i.e. the amount of business revenue (individual tax ruling (KIS) of 30 October 2023, ref. 0115-KDIT1.4011.633.2023.1.JG).
In addition, costs connected with disposing of the virtual currency can be treated as tax-deductible. They include commissions charged by intermediaries in the exchange (exchanges, bureaux and wallet providers), transaction fees and other documented expenses directly connected with disposing of the cryptocurrency.
- Documented expenses incurred to acquire the cryptocurrency
- Commissions charged by intermediaries in the exchange
- Transaction fees on cryptocurrency exchanges
- Fees for withdrawing the proceeds of the cryptocurrency disposal
- Expenses paid to wallet service providers, if connected with the disposal
- Other expenses only if they are directly connected with the acquisition or disposal
Any excess of costs over revenue from the disposal of virtual currency earned in the tax year increases the tax-deductible costs of disposing of virtual currency incurred in the following tax year (Article 22(16) of the PIT Act)
Carrying forward excess costs to the next tax year is an important relief for taxpayers. If in a given tax year the costs connected with cryptocurrency operations exceed the revenue earned, the difference can be used to reduce revenue in the following year.
It is particularly important to document all costs connected with cryptocurrency operations properly. Taxpayers should keep invoices, transfer confirmations, cryptocurrency exchange statements and any other documents confirming the expenses incurred.
Reporting obligations for cryptocurrencies
An individual running a business who has received payment in cryptocurrency for an invoice has specific reporting obligations. Under Article 30b(6) of the PIT Act, simply incurring the costs of acquiring cryptocurrency creates an obligation to show them in a tax return.
The taxpayer must file the annual PIT-38 return (the return for capital gains) for the year in which the cryptocurrency was acquired, even if it has not been disposed of by the end of that year (companies settle this revenue and these costs in CIT, not in PIT-38). This obligation follows from the need to document the acquisition costs, which can be used when the virtual currency is disposed of later.
If the cryptocurrency is disposed of in a later tax year, the taxpayer does not correct the return already filed. Instead, they file a new annual return showing the revenue from disposing of the cryptocurrency and the excess costs from the previous year (Article 22(16)).
A taxpayer receiving payment in cryptocurrency must file a PIT-38 return for the year of acquisition, even without a disposal. In the following year they file a new return with the revenue from the disposal and the excess costs from the previous year
This reporting mechanism aims to ensure that tax-deductible costs are settled correctly when the cryptocurrency is actually disposed of. It prevents a situation in which the taxpayer cannot document the acquisition costs because too much time has passed.
At the same time, the business must settle the business revenue from the invoice correctly. This revenue and the related costs are settled on the standard terms, as if the invoice were paid in a traditional currency.
Tax rulings on cryptocurrency settlements
In numerous individual tax rulings, the Director of the National Tax Information (KIS) clarifies the rules for settling operations involving cryptocurrencies. In a ruling of 13 January 2023 (ref. 0114-KDIP2-2.4010.216.2022.4.SP, concerning CIT), the Director accepted as correct the position that units of virtual currency transferred by a company as payment for an invoice should be treated as capital revenue and the costs of buying them as capital costs.
An important element of this ruling is the statement that exchange differences on buying and transferring units of virtual currency should not be settled as they are for own funds. This means that the exchange difference mechanisms used for traditional foreign currencies do not apply to cryptocurrencies.
In a ruling of 4 January 2023 (ref. 0111-KDIB1-1.4010.718.2022.1.SH, concerning CIT), the Director of KIS stressed that the value shown on the invoice in a traditional currency is the equivalent of the fee for the service performed. This amount, resulting from the parties' agreement, is the value of the service provided and at the same time the revenue from receiving payment in cryptocurrencies. In CIT, a later exchange of the cryptocurrency gives revenue from capital gains (Article 7b(1)(6)(f) of the CIT Act), and the cost is the value of the service from the invoice (Article 15(11)).
An IT company issued an invoice for programming services for USD 10,000 and accepted payment in bitcoin. On the invoice date the bitcoin rate was USD 40,000 per unit, so the customer transferred 0.25 BTC. The company had to recognise business revenue of USD 10,000 (converted into złoty) and a cryptocurrency acquisition cost of the same amount. When a week later it sold the bitcoin for USD 10,500, revenue from capital gains of USD 10,500 arose, and the income from this source was USD 500 (in the settlement - the difference between the amounts in złoty).
If all operations connected with receiving and disposing of the cryptocurrency take place on the same day, the value of the service, the value of the cryptocurrency received and the value of the revenue from its disposal will be equal, which means there is no income from capital gains
The rulings stress that where the cryptocurrency received is exchanged immediately for a traditional currency, all values will be equal. This means there is no income from capital gains, and all of the business's income will come from business activity.
If, however, the taxpayer keeps the cryptocurrency received for some time and then exchanges it for a traditional currency at a profit, the difference will be taxed as income from capital gains. Commissions and fees connected with the exchange can be included in the tax-deductible costs of that revenue.
Practical challenges and recommendations
Issuing invoices paid in cryptocurrency brings many practical challenges that businesses must take into account. The first is the need to monitor cryptocurrency exchange rates continuously, as they are highly volatile.
Businesses should set clear procedures for determining cryptocurrency exchange rates for invoicing and tax settlements. It is recommended to use rates from reputable cryptocurrency exchanges or market data services, while documenting the source and the time the rate was taken.
Securing cryptocurrency wallets properly and documenting all transactions is also important. Businesses should keep detailed records of operations, including dates, amounts, exchange rates and blockchain transaction identifiers.
Businesses accepting cryptocurrency payments should introduce procedures for monitoring exchange rates, securing wallets and documenting all operations in detail. In unusual cases you can apply for an individual tax ruling
Training the accounting team in the specifics of cryptocurrency settlements is also key. Staff responsible for accounting should understand the double nature of taxation and the rules for documenting operations correctly.
Businesses should also consider introducing systems that convert exchange rates automatically and generate the relevant accounting entries. This can make settlements much easier and reduce the risk of errors in documentation.
