Poland publishes draft law on mandatory e-invoicing via KSEF
On 1 December 2022 the Ministry of Finance in Poland published the draft legislation amending the VAT Act regarding the introduction of mandatory e-invoicing in the National e-Invoicing System (KSeF). It is the second stage of the implementation of mandatory CTC e-invoicing in Poland, which will take effect from 1 January 2024.
Due to the Council Implementing Decision (EU) No 2022/1003 of 17 June 2022 authorising Poland to apply a special derogatory measure from Articles 218 and 232 of Directive 2006/112/EC on the common system of value added tax (OJ. UE L 168/81), Poland is now able to propose amendments to the VAT Act that leads to full implementation of mandatory e-invoicing in the country.
What is KSeF and who is in scope?
KSeF is the centralised e-invoicing platform for issuing, exchanging and archiving structured invoices. We are currently in the voluntary phase of issuing invoices through the KSeF system; the system has been available for transactions since 1 January 2022.
From 1 January 2024, with the implementation of the mandatory mandate, suppliers and buyers will be obliged to issue and receive their invoices through the KSeF.
Transactional KSeF scope:
The obligatory e-invoicing will cover activities that currently require documenting an invoice issued in accordance with the VAT Act. Therefore, the transactional scope will include the supplies of goods and services made between entrepreneurs (B2B), to public authorities (B2G), and to consumers (B2C).
Subjective KSeF scope:
- Mandatory: taxpayers performing activities subject to the invoicing requirements according to Polish VAT regulations, who have their registered office or permanent place of business in Poland and taxpayers registered to OSS/IOSS procedure in Poland.
- Voluntarily: foreign taxpayers who do not have their registered office or fixed establishment in the territory of Poland, VAT exempted taxpayers and flat-rate farmers.
- Outside of scope: taxpayers registered for the OSS/IOSS VAT procedure in another Member State and taxpayers issuing invoices under special procedures provided for in the VAT Act.
What amendments were introduced for KSeF?
Verification QR code
Taxpayers will need to mark structured invoices with the verification code (QR code) if issuing them outside of KSeF. The code will need to be displayed when visualising e-invoices in commercial programs or free tools provided by the Ministry of Finance (meaning in PDF or paper formats too).
KSeF will provide functionality enabling verification of the correctness of the invoice issued via KSeF. After scanning the QR code, the information contained in the code will be read, and data identifying this invoice will be displayed with information from KSeF about their correctness. The implementing regulation to the VAT Act will provide further information regarding the method of marking e-invoices.
Corrective process – new document introduced
Contrary to the previous position of the MoF, corrective invoices issued after the entry into force of the draft Act will be issued in KSeF if they are issued by a taxpayer with a registered office or permanent place of business in Poland, regardless of whether they were issued using KSeF or outside KSeF.
Also, buyers will be able to propose corrections to the original invoice (except to the NIP number). After seller acceptance it will become a corrective e-invoice (alternative corresponding to the corrective note, which can only be issued by the buyer and used when the invoice recipient finds a mistake in the delivered invoice).
From 1 January 2025 invoices issued via cash registers will be in scope of the KSeF system. Taxpayers keeping sales records using cash registers will be required to issue a fiscal receipt for each sale, but they should not issue an invoice from the cash register, as this document will not be considered an e-invoice.
Also, from 1 January 2024, a receipt with NIP number up to PLN 450 will not be considered an e-invoice.
Technical issues with the KSeF system
In case of KSeF system failure, taxpayers will have to issue e-invoices in accordance with the schema, but instead transfer them to the recipients outside the KSeF. The date of issue of such e-invoices will be the date specified in the P_1 field.
After the failure is over, taxpayers will have seven days to send invoices issued in this way to KSeF. Also, it is possible to issue e-invoices outside of KSeF in the event of a crisis.
According to the draft law, failure to comply with the obligations introduced in the amended VAT Act will lead to financial administrative penalties.
The head of tax office will be able to impose:
- A fine of up to 100% of the amount of VAT indicated on the invoice,
- Or a fine of up to 18.7% of the total amount due shown on the invoice.
Penalties can be imposed when the taxpayer:
- Didn’t issue an invoice using the KSeF – such a situation is treated as lack of invoice.
- Issued an e-invoice but in a non-compliant manner during a KSeF system failure.
- Didn’t send invoices issued during the system failure to KSeF, within the specified seven day timeline.
It’s vital to highlight that the introduction of the administrative penalties with the half year delay isn’t hindering the introduction of mandatory e-invoicing in Poland. This postponement should not be viewed as a delay to the introduction of the mandatory e-invoicing obligations. Invoices issued between 1 January 2024 and 30 June 2024 outside of KSeF will not be treated as structured invoices, and therefore penal and fiscal sanctions will apply.
Key KSeF dates highlighted by the draft regulation
- 1 January 2024: mandatory e-invoicing enters into force in Poland (without any phased roll-out).
- 1 July 2024: administrative penalties for non-compliance, as defined by the draft law, take effect.
- Second quarter of 2025: final legislation is expected to be published.
KseF public consultation deadline: 23 December 2022
With the draft regulation published, the Ministry of Finance also presented the new logical structures of FA(2) and FA_RR. The public consultation on the substantive and logical correctness of the schemas is open until 23 December 2022, coinciding with the public consultation regarding the draft regulation on the mandatory implementation of KSeF.
Need help for e-invoicing in Poland?
Want to ensure compliance with the latest e-invoicing requirements in Poland? Get in touch with our tax experts.