Polish President signs legal act mandating the KSeF e-Invoicing system
On August 4, 2023, the President of the Republic of Poland endorsed an Act that introduces the obligation to issue invoices through the National e-Invoice System (KSeF). With the Act’s approval awaiting publication in the Journal of Laws, the final stage of the legislative process is underway. Once published, the Act will transition into a legally binding mandate, and the majority of its provisions will spring into action on 1 July 2024.
Learn everything you need to know about the National e-Invoicing System (KSeF)
Presently, e-invoicing through KSeF is optional, coexisting alongside various traditional invoicing methods. However, the clock is ticking, and in less than a year (starting July 1, 2024), active VAT taxpayers based in Poland will be mandated to exclusively use KSeF for issuing invoices. This mandate will also extend to foreign entities possessing a fixed establishment within Poland’s territory, as defined by VAT regulations.
Prepare for the transition to the Polish e-Invoicing mandate
To ensure a smooth transition, the Ministry of Finance is preparing an information brochure detailing the final version of the FA(2) XML schema for e-invoices. In tandem, comprehensive technical documentation is in the works, encompassing critical aspects such as generating and managing collective identifiers for payments and QR verification codes.
We anticipate the release of the final versions of regulations outlined in the Act, notably concerning KSeF utilization and exemptions from the e-invoicing obligation. This transition will also prompt changes in other regulations, including those governing invoice issuance, as well as the precise scope of data to be incorporated in VAT-related tax returns and records. These regulatory adjustments aim to align existing frameworks with the requisites of e-invoicing. An initial step in this direction was taken on 7 August, with the publication of a draft amendment to the regulation governing KSeF usage.
As the clock ticks down to July 2024, businesses both within Poland and those with a fixed establishment on its soil need to gear up for the e-invoicing revolution.
OpenText Active Invoices with Compliance is already online and connected to the KSeF portal for customers wishing to prepare for the transition. In addition, our e-Invoicing mandate readiness check service is available to assist customers in assessing the output from their ERP/finance/accounting systems to ensure it meets the new legislation. Reach out to your OpenText account representative or contact us here.
Polish legal wrangling around new e-Invoicing system
After the postponement of the mandate for e-Invoicing, the Lower House of Parliament in Poland (Sejm) passed an amendment to the VAT Act to support the plans for KSeF (the Polish e-Invoicing platform). However, the Senate voted to reject the amendment. This appears to be due to political conflict between the higher (senate) and the lower (Sejm) chamber of the Polish parliament.
Since the ruling party holds the majority of votes in the Sejm chamber they were able to overrule the senates rejection, effectively approving the KSeF legislation. The bill is now ready to be sent for final signature by the President in August 2023 with the intent to push forwards with the mandatory e-invoicing regime as from 1 July 2024.
National e-Invoicing mandate postponed to July 2024
The Polish Ministry of Finance have completed a public consultation on new draft legislation surrounding mandatory e-Invoicing via the KSeF platform. The result of the consultation has been to postpone the implementation date of the mandate from 1st January 2024 until 1st July 2024, giving taxpayers a further six months to prepare. Penalties for non-compliance will come into effect as of 1st January 2025.
The draft legislation states that consumer invoices (B2C) will now be fully excluded from the scope of the mandate.
Further, a provision has been made for taxpayers to issue invoices outside of the KSeF platform in the case of technical failure on the taxpayer’s side as long as they are subsequently transmitted to the KSeF system the following day.
Finally, there is a public consultation on a new proposed schema defining the logical structure of e-Invoices. The specifications can be found on the website of the Ministry of Finance.
New specifications for e-invoicing mandate released
The Polish e-invoicing is expected in 2024 so companies still have some time to prepare. Here are three important aspects of these new mandates.
Timeline and mode of inception
The Polish mandate imposes a “big bang” approach for both issuance and reception of e-Invoices. After an initial voluntary period, which already came into effect on 1 January 2022, the mandate comes into full force for all companies, regardless of size, beginning in the second quarter of 2023.
The exact inception date of the reform is not yet finalized, which, given the short lead time, is of course going to cause concern for companies operating in Poland. This lack of communication of an official date could lead us to suspect that the Polish system is still not fully ready – but only time will tell.