How to Prepare Your Company for Poland’s National System of e-Invoices

Poland is progressing towards e-invoicing with the launch of the National System of Electronic Invoicing (KSeF). Since October 2021, the Polish Ministry of Finance has been actively developing this system, and as of January 2022, businesses have the option to voluntarily transition to e-invoices before it becomes mandatory. As this change impacts the majority of Polish entrepreneurs, it is crucial to understand how to prepare for KSeF.

What is KSeF in Poland?

The Krajowy System e-Faktur (KSeF), or the National e-Invoice System, is an initiative by the Polish Ministry of Finance designed to standardize the issuance, reception, and storage of e-invoices. It aims to streamline communication between businesses and tax authorities while combating tax fraud.

When will KSeF Become Mandatory?

KSeF was set to become mandatory on July 1, 2024, but the Ministry of Finance postponed it due to critical errors in the platform. As of now, a new implementation date has not been determined.

At the beggining of April Ministry of Finance published a draft bill featuring points brought up during most recent round of public consultations. The Ministry awaits further comments on the draft document until April 19th. Details of the new schedule will be announced no earlier than the end of April. The legislative process is expected to conclude by the end of June 2024.

Once enforced, B2B and B2G e-invoicing through KSeF will be obligatory, replacing traditional paper invoices and electronic formats.

The initial deadline followed the approval by the European Commission for Poland to modify specific rules related to value-added tax. On March 30, 2022, the European Commission proposed a decision to the EU Council, granting permission for Poland to implement a mandatory electronic invoicing system.

For the foreseeable future, B2C transactions are exempt from e-invoicing.

Structured Invoices and the National System of e-Invoices (KSeF) in Poland

KSeF requires entrepreneurs to exchange structured invoices characterized by:

• A KSeF ID number.
• Adherence to FA(2) structured XML format.
• Containing legally required invoice data.

These invoices can be issued directly using KSeF platform provided by the Ministry of Finance or through commercial systems integrated with KSeF, such as Comarch EDI. Importantly, structured invoices must be stored for 10 years.

4 Benefits of KSeF for Taxpayers

1. Improved business conditions and security through process automation.
2. Accelerating VAT returns from 60 to 40 days.
3. Reduced risk of human error.
4. Secure storage and access to the content of e-invoices.

4 Benefits of KSeF for Tax Administration

1. Effective monitoring of invoice turnover, enabling automatic checks on the declared and paid value of VAT.
2. Enhanced control efficiency for tax administration.
3. Improved state budget revenues.
4. Expedited documentation of transactions for quicker processing.

How to Prepare Your Company for KSeF

KSeF is more than just a legal requirement – it represents a revolution in your company’s invoicing processes, offering multiple benefits for taxpayers. Anticipate these changes before they become legally binding and start leveraging these advantages now. Postponing preparation, especially in large enterprises, may lead to prolonged implementation periods and incurring costly penalties.

Firstly, analyze your current IT solutions to ascertain their compatibility with KSeF. Updating or incorporating new technologies may be necessary to align your systems with KSeF authorization.

Ensure that your employees, particularly those responsible for handling invoices, are well-versed in the impending changes. Collaborate with them to optimize processes within your company.

More information can be found in our white paper How to Prepare Your Company for KSeF.

KSeF – Registration and Invoice Issuing

The National e-Invoice System is accessible to both natural persons and entities that are not natural persons. The primary ownership authorization is automatically granted to the taxpayer. However, accountants and other employees must submit a notice to the tax office to obtain permission to use KSeF.

Small companies can issue and deliver invoices using free tools provided by the Ministry of Finance. Larger enterprises are encouraged to utilize commercial solutions for automating their invoicing processes. Comarch offers KSeF-integrated EDI solutions for all companies – including the largest ones. 

While KSeF does not permit attachments to e-invoices, it is advisable to send attachments separately, outside of the KSeF system. Platforms like Comarch EDI allow the transfer of additional files along with the issued e-invoices to the customer.

Receiving an Invoice in KSeF

KSeF does not send notifications to taxpayers for each new invoice, as it would be more of a hindrance than a convenience for those managing a high volume of invoices. To obtain information about available invoices, taxpayers need to access the portal itself to see whether any new invoices have appeared. 

The invoice issued by the vendor is automatically available in KSeF, and the recipient can access it through 2 methods. The buyer's recipient can download the file directly from KSeF. Larger enterprises can use dedicated solutions provided by specialized suppliers, such as Comarch, which use the available API interface.

Foreign Entities vs. KSeF

Foreign entities without a registered office or permanent place of business in Poland are not obligated to issue invoices using KSeF – it remains voluntary. Typically, invoices sent to foreign entities should be delivered in a mutually agreed-upon manner, such as a PDF file.

IT Integration with KSeF and Comarch EDI

Integrating with KSeF in-house demands IT resources and advanced technological expertise. Hence, many Polish companies are expressing interest in employing EDI solution providers. Commercial systems offer seamless integration, easier adaptation to the new invoicing mandate, and a variety of additional functionalities.

Prepare for KSeF with Comarch

For valuable insights into KSeF and Comarch EDI, download our comprehensive white paper and prepare for the invoicing revolution in Poland today!

There’s more you should know about e-invoicing in Poland – learn more about the new and upcoming regulations.