The European Commission has approved Poland’s request to introduce mandatory structured invoicing (e-invoicing) via the National e-Invoicing System (abbreviated as “KSeF”).
National e-Invoicing System: regulations in place
What is KSeF and is it mandatory?
The National e-Invoicing System (KSeF) was launched in January 2022. It is used for issuing, sending and receiving “structured invoices”; however, what is important is that taxpayers can issue their structured invoices using their own software.
At present, issuing, sending and receiving structured invoices is optional.
What is a structured invoice (e-invoice)?
A structured invoice is an invoice in xml format that complies with the e-Invoice FA(1) logical structure. This structure communicates, among others, the information contained in paper and electronic invoices, as well as JPK_FA(4) and JPK_V7M(K) files. E-invoices are now used alongside paper and electronic invoices.
Powers of attorney and access to KSeF
In order for an entity to operate using KSeF, it must grant appropriate powers of attorney to persons who will perform actions on their behalf on any invoices being issued. Logging into the e-invoicing system will only be possible with a qualified signature or trusted profile.
The taxpayer is also required to file a notice with the head of the Tax Office regarding the entities’ authorised access to invoices being issued, e.g. accountants who do the books. The existing UPL-1 powers of attorney are not sufficient in this case.
When will KSeF become mandatory?
The decision of the European Commission allowing for the introduction of the e-invoicing requirement was issued for the period from 1 April 2023 to 31 March 2026. As a result, electronic invoicing via the KSeF system may become mandatory as early as April next year.
This period may be extended if Poland submits such a request along with a report on the operation of KSeF to date. The report should discuss how effective KSeF is in combating VAT fraud and minimising VAT evasion, and assess the impact of e-invoicing on taxpayers.
Which entities are going to be obliged to use structured invoices?
The obligation to use structured invoices is going to apply to taxpayers seated in Poland who, in connection with their business activities, are obliged to issue VAT invoices in accordance with the Polish law.
However, this obligation shall not apply to:
- foreign entities that are not obliged to register for VAT purposes in Poland
- taxpayers registered for VAT purposes, but with no seat in Poland.
Can we expect any changes to e-invoices?
Given that structured invoices are going to be mandatory, the Ministry of Finance will probably start working on adjusting the provisions of the VAT Act and possibly changing the logical structure of e-Invoice FA(1).
What is more, the Ministry of Finance has promised to provide free tools to support KSeF users. However, there is a possibility that these tools will be available only for micro and small entrepreneurs.
Although taxpayers will be obliged to issue structured invoices using KSeF at the earliest in 2Q 2023, we recommend that you start gradual preparations for these upcoming changes now. The new way of issuing invoices will require taxpayers to adapt their in-house procedures, bookkeeping apps and even contracts with their contractors.
Should you have any questions or wish to discuss the topic, please contact our expert, Monika SMAGA:
tel. +48 61 8515 766
fax +48 61 8515 786