Compliance updates - Poland

The KSeF system production version launched in 2022 and was planned to become mandatory for all taxpayers in January 2024. However, it may now be delayed six months to July 2024, according to the announcement from the Ministry of Finance.

As mentioned in our previous publication, a draft outlining the scope of the mandate was released in December. Currently, this draft is facing amendments.

Along with the postponement, a few modifications have been raised, such as:

• Excluding B2C invoices from the KSeF mandatory scope;
• Deferring the obligation of VAT-exempt businesses to issue structured invoices to January 2025;
• Invoice from cash registers and simplified invoices can keep their current solution until 31 December 2024;
• Possibility to issue invoices offline outside the KSeF and deliver the invoice to the KSeF the next day;
• Penalties will take effect from 1 January 2025.

The Polish government is currently finalizing the legislative framework. They plan to introduce the statutory provisions by Q1 and obtain approval by July this year.

On 1 December, the Polish Ministry of Finance announced a public consultation on the draft VAT amendment introducing e-invoicing obligation.

According to the amendment, all taxpayers established in Poland (i.e., that have a place of business or a fixed place of business within the territory of the country) need to issue e-invoices in the National e-Invoice System (KSeF). Activities subject to VAT in Poland, including B2B, B2G, and B2C, are in the scope of the mandate.

Furthermore, taxpayers will be able to issue VAT RR invoices voluntarily via KSeF in the updated version.

In addition, VAT payers might face non-compliance penalties of up to 100% of the tax amount on an invoice (or up to 18.7% of the total amount in case of an invoice without tax).

To facilitate e-invoicing in Poland, the Polish government has provided a free KSeF Taxpayer Application and integrated the e-mikrofirma application with KSeF. In addition, the KSeF mobile application will be launched soon.

Along with the amendment, the e-invoice draft logical structures and FA_RR can be found on the MoF website.

The amendment is now open for public consultation. Taxpayers can send comments and opinions to sekretariat.pt@mf.gov.pl by 23 December 2022. Upon approval, the act will enter into force from 1 January 2024, with some provisions about penalties starting on 1 July 2024.

On 20 October, an update of KSeF test application was launched, and users can issue invoices and download the Official Receipt Certificate (UPO – Pl.: Urzędowe poświadczenie odbioru) in PDF format.

Currently, the KSeF platform only supports invoices generated in FA_VAT (a structured XML format). Along with the latest test version, it could also anticipate invoice presentation (human-readable format) becoming one of the options for the VAT payers.

Below is the non-exclusive list of the new features:

• NIP checksum validation mechanism;
• Issuance and download of e-invoices and UPOs in PDF format;
• Flagging the issuance of a duplicate invoice (via invoice number);
• Batch download of invoices;
• Possibility to search invoices submitted in the same session from the Session History.

The complete updated list can be found here.

Besides issuing and receiving invoices, businesses can also test managing authorization and generating tokens in the test environment. In addition, taxpayers can download an e-invoice or a UPO with anonymous access.

The Polish government has encouraged VAT payers to participate in testing the system and send comments or suggestions to info.ksef@mf.gov.pl with ‘AP_TEST’ as a subject.

Based on the decision of the EU Council, the countrywide e-invoicing mandate will enter into force on 1 January 2024.

Until then, business operators in Poland will be able to continue using the KSeF platform voluntarily.

Read the full announcement (in Polish) here.

Poland has applied to obtain the derogation from the EU council to apply the countrywide e-invoicing. According to the draft decision from the EU council dated 10 June 2022, the obligation to issue invoices electronically via the National e-invoicing system (KSeF) would start from 1 January 2024.

As our previous update, Poland requested authorization for a special measure to deploy mandatory electronic invoicing for all transactions from April 2023, which now might be postponed to January 2024.

Currently, the KSeF system is in the voluntary phase, meaning taxpayers can still use their current solutions to issue invoices before the mandate kick-off. However, for the taxpayers who choose to use the KSeF, the buyer’s consent is required.

Pagero follows the developments closely and will inform our customers once the final decision on derogation from the EU Council will be published.

The Polish e-invoicing mandate has stepped forward. On 2 August 2021, the Polish government submitted to the European Commission a request for a derogation to adopt B2B e-invoicing. On 30 March 2022, the European Commission has sent a draft derogation, based on the application, to the EU Council for approval.

As announced before, the Polish government amended the VAT Act, deploying the National e-invoicing system (KSeF) in October 2021. Currently, taxpayers can voluntarily issue and receive structured invoices (FA_VAT) in the KSeF system. Once invoices are generated in KSeF, they will be available in the system and can be downloaded by the trading parties.

Furthermore, the government is encouraging businesses to use KSeF for simplifying the invoicing process and has published frequently asked questions on its website to assist taxpayers in adopting the system. While the Ministry of Finance (MoF) announcement does not provide a specific deadline for the e-invoicing adoption (in the previous MoF webinar, it only stated Q2 2023), it mentions giving businesses enough time to switch to the new platform.

Right now, the MoF is working on the business and legal concept of the KSeF to leverage the national invoicing system within the scope granted by the EU Commission. According to the MoF, the expected decision from the EU Council should be released within a few weeks.

The Polish e-invoicing platform, PeF, which was until recently used only in the public sector, will soon be replaced with a centralized system.

KSeF will be the new governmental hub, mandatory for suppliers to use for transactions on a countrywide level. Since the beginning of this year, it has been possible for businesses to sign up to the system and exchange e-invoices voluntarily. As of 2023, the e-invoicing obligation via the KSeF platform will be entering into force in Poland.

Learn more about the timeline, benefits of the new platform, and how to prepare your business for the upcoming developments in our latest blog.

According to the amendment, taxpayers are expected to issue invoices in an XML format (FA_VAT) together with the ability to exchange and receive return messages from KSeF via API communication. Once the invoice is validated, an identifying number (UUID) will be assigned to each invoice, marking KSeF approval.

Important timelines

These are the timelines for e-invoicing via KSeF:

• October 2021-December 2021 – KseF pilot phase (not valid for tax purposes);
• January 2022 – voluntary e-invoicing phase, recipients’ consent is required. (valid for tax purposes);
• January 2023 – mandatory e-invoicing for all businesses.

During the voluntary phase, suppliers will need to convert and distribute the invoice in the buyer's agreed format, i.e., paper, PDF or another electronic invoice format if the buyer does not accept receiving the invoice from KSeF. However, as of 2023, it will become mandatory to issue and receive structured e-invoices through the KSeF. The PEF (Peppol) system will work parallel to the KSeF during the voluntary phase and will be expected to be integrated from 2023.

No invoice storage obligation for e-invoicing with KSeF

Taxpayers who issue invoices in KseF will be released from the obligation of invoice storage. Once invoices have received a UUID from KseF, a duplicate of the issued invoice will automatically be stored in the system. There will be no additional requirements for the KseF users to have an invoice archive of their own. However, taxpayers can still archive with their current solutions, i.e., service providers, to store their e-document in one place and conduct business analysis.

Moreover, taxpayers will not have to send the Standard Audit File for Invoices (JPK_FA), as this data in its entirety will be available to tax authorities in the KseF.

Further benefits of using KSeF

• Speed: tax refund will be shortened by 20 days, from 60 to 40;
• Security: the invoice will be stored in the MF's database, ensuring it won’t be damaged or lost;
• Acceleration of turnover: structure invoices can be received and processed faster and more accurately, leading to a timely or earlier payment;
• Convenience: the invoice is structured; taxpayers can have the full benefit of end-to-end process automation;
• Standardisation: mutual settlements and invoice booking in KSeF systems will become more manageable;
• Fewer obligations: the taxpayer will not have to store invoices issued in the KSeF, as the administration will keep them for 10 years;
• Less data to be sent to the tax authorities: taxpayers using KSeF will not have to generate audit files (JPK_FA), as these will be available for the authorities in the system.

Draft publication

There has been little communication from MF since the public consultations in February 2021. However, now the Ministry has released the first draft of the e-invoice logical structure to be used in the planned e-invoicing mandate. Along with the XSD schema, a set of e-invoice samples is provided.

At the same time, MF informs that a voluntary adoption by connecting with KSeF (pl. Krajowy System e-Faktur) is planned to be enabled starting from January 2022 and not from October 2021, as communicated earlier.

Timelines

As we already mentioned, Poland plans to enable the KSeF platform for voluntary adoption as of January 2022. Starting January 2023, the mandatory use of e-invoicing on a country-wide scale is anticipated to be enforced.

The amendment comes hand in hand with the framework between the UK and EU-27 members, with the purpose to assist each other in protecting and recovering VAT revenues. Together with the UK, Norway also becomes exempt from this obligation.

Countries such as Italy or France have already dropped their requirement for fiscal representatives. Sweden and Denmark are very likely to adopt measures in the same direction.

The official regulation from the Polish Ministry of Finance is available here.