Issuing invoices is an inseparable part of business operations. In order to improve commercial transactions, the legislator has created the National e-Invoice System (KSeF). Its goal is to standardize the documentation of business transactions. In the following article, you will find current information about the KSeF in Poland.
Table of Contents
- KSeF in Poland (The National e-Invoice System) – what is it?
- Timeline of introducing the KSeF system in Poland
- The Significance of the KSeF system for business transactions
- Entities using KSeF in Poland
- Access to the KSeF system in Poland
- What does the introduction of the KSeF system in Poland mean for entrepreneurs?
- The National e-Invoice System (KSeF) in Poland – summary
KSeF in Poland (The National e-Invoice System) – what is it?
The abbreviation KSeF stands for the original Polish name: Krajowy System e-Faktur. It is the Polish National e-Invoice System designed for issuing and receiving structured invoices. Namely, invoices in XLM format compliant with the FA(1) e-Invoice logical structure. The standard form is available in the Central Repository of Electronic Document Templates on the ePUAP platform.
The National e-Invoice System (KSeF) was introduced by the Act of 29 October 2021, amending the Act on tax on goods and services and certain other acts. The amendment adapted Polish legislation to EU requirements.
The aim of the National e-Invoice System (KSeF) is to improve business transactions by standardizing the model of invoices.
Timeline of introducing the KSeF system in Poland
The obligation to use the KSeF requires adjusting the company’s financial and accounting system. Moreover, it involves training employees, verifying and optimizing procedures as well as data. With this in mind, the Ministry of Finance is implementing the system in stages. According to the latest arrangements, the time frames for each of them are as follows:
- The voluntary stage is effective from 1 January 2022 to 31 June 2024.
During this period, one can use the KSeF system as one of the forms of documenting transactions. It can be implemented simultaneously to paper and electronic invoices. This serves to test the system and prepare for the upcoming organizational and technical changes.
- The obligatory stage requires the use of KSeF from 1 July 2024.
Initially, the system was supposed to be mandatory from 1 January 2024. However, due to organizational difficulties, the legislator postponed this deadline after a consensus conference in February 2023. The reservations were reported in particular by medium and small entrepreneurs.
The above-mentioned date applies to active VAT taxpayers. Taxpayers exempt from VAT will have to use the KSeF system from 1 January 2025.
The Significance of the KSeF system for business transactions
Settling transactions through structured invoices means that the only permissible form of settlement for VAT payers with their registered office or fixed place of business in Poland will be invoices issued through the KSeF system. This applies to all invoices issued in accordance with Polish regulations.
You should remember that documents issued without using KSeF will not be recognized as invoices. But, the Minister of Finance will be able to exempt certain taxpayers from the obligation.
Entities using KSeF in Poland
The KSeF system is intended for:
- Entrepreneurs registered as active VAT taxpayers,
- Entrepreneurs exempt from VAT,
- Taxpayers identified in Poland for the special EU OSS procedure, with a Polish tax identification number.
Access to the KSeF system in Poland
The KSeF platform operates on a certification model. Authentication and authorization of a person in the system are necessary to use it. A natural person logs into the system using the tax identification number (Polish NIP). Then, it confirms the data using an electronic signature, a trusted profile, or through the applications of the Ministry of Finance. A legal entity requires a qualified seal for successful login. Positive verification of the entity enables browsing, issuing, and receiving structured invoices.
There are three types of access and authorization rights, namely:
- Granting, changing, or revoking permissions to use KSeF.
- Issuing or accessing structured invoices.
- Issuing invoices referred to in Article 106d(1) of the Act of 11 March 2004 on Tax on Goods and Services, which are structured invoices.
The necessary authorizations are obtained in two ways:
In the first case, this is done through software available on the official website of the Ministry of Finance. To use the second option, you must submit a paper notification (ZAW-FA form) to the competent head of the Tax Office regarding granting or revocation of permissions to use the KSeF.
The legislator also provides for the possibility of transferring the access rights of the taxpayer to another entity.
What does the introduction of the KSeF system in Poland mean for entrepreneurs?
The unification of the invoicing system needs to take into account business dynamics and entrepreneurs’ needs. According to the current arrangements, the KSeF will introduce, among others:
- Exemption from the obligation to keep paper invoices. Accounting documents in electronic form must be stored in the KSeF for 10 years. The entrepreneur is responsible for complying with specific regulations regarding other archiving periods.
- Exemption from the obligation to submit the JPK-FA file to the Tax Office.
- Shortening of the waiting time for tax returns from 60 to 40 days.
- Interpretation security and transaction transparency through the standardization of the document used for settlements.
- Automation of the invoicing system aiming to improve settlements and accounting.
- Introduction of self-billing invoices, allowing the purchaser to issue invoices on behalf of the seller.
- Exemption from the obligation to issue the so-called consumer invoices.
- The obligation to state the invoice reference number from the KSeF system when ordering invoice payments.
- Elimination of simplified invoices (up to 450 PLN) starting from 1 January 2025. These transactions will be documented with a receipt or invoice.
- Lack of the possibility to attach external files to invoices issued in the KSeF. As a result, any additional information must be provided in a separate file.
- Receiving invoices by the purchaser will be conditional on their consent. The absence of consent does not exclude the possibility of issuing an invoice in KSeF. However, it imposes an obligation on the entrepreneur to submit it to the purchaser in another mutually agreed form. The VAT Act does not specify requirements in this matter. Nonetheless, the content must be identical for both parties.
- Replacement of correcting notes for KSeF invoices with corrective invoices. Starting from 1 July 2024, this will be the only form of data correction.
The National e-Invoice System (KSeF) in Poland – summary
The National e-Invoicing System aims to standardize business transactions. Its goal is to improve and enhance their transparency. Implementing the system requires organizational and technical measures to prepare businesses for the upcoming changes. The initial steps can be challenging due to doubts and concerns of entrepreneurs. However, KSeF’s objectives will undoubtedly bring numerous benefits to commercial transactions.