Poland is among the many European countries that have adopted e-invoicing. Poland’s Ministry of Economic Development, Labour, and Technology released a set of principles to implement e-invoicing in Poland.
The adoption of e-invoicing in Europe aims at solving a fundamental problem. Previously, there were so many e-invoice formats in the region, and it was difficult to exchange financial data across borders.
More so, issuing the existing paper/PDF invoicing format is costly, error-prone, and time-consuming.
Despite this uniformity of purpose, each country adopts the e-invoicing system slightly differently based on their choice of an exchange platform, timeline, method of e-invoicing exchange, e-invoicing format, and lots more.
So, if you want to comply with e-invoicing regulations in Poland, read till the end.
This article will cover the rules and requirements for e-invoicing, how private businesses and public entities can send e-invoices, and the best way to stay compliant with e-invoicing in Poland through Storecove.
Is e-invoicing mandatory for all?
Apart from the European Directive 2014/55/EU, Poland will introduce a new e-invoicing regulation that will significantly impact Polish taxpayers. Starting from January 2024, B2B e-invoicing will be mandatory for all taxpayers in Poland.
Poland’s e-invoicing mandate was initially facilitated through the Standard Audit File for Tax (SAF-T) in 2020. But SAF-T does not enable the tax authority to access e-invoices in real-time because taxpayers send their invoices monthly.
So, Poland has now adopted an automated invoicing system mandatory for all B2B and B2G transactions.
Notably, e-invoicing is voluntary within Poland's one-year compliance period (2022). Meaning that it can only be used if both supplier and seller agree. After this period, e-invoicing will become mandatory in Poland.
What are the e-invoicing requirements in Poland?
Poland’s e-invoicing requirement follows Peppol’s BIS 3.0 billing standard because it has not developed its own national Core Invoice Usage Specifications (CIUS). This format is also compliant with the European E-16931 e-invoicing standard.
Poland has also announced that all B2B and B2C e-invoices must be in the FA_VAT (a standard XML format) and issued and received through the national e-invoicing system Krajowy System e-Faktur (KSeF). The KSeF started operation on 1 January 2022.
Once the mandatory period is effective, the tax authority will be able to access tax records for auditing purposes. E-invoices will be archived automatically on KSeF for a period of 10 years. Taxpayers may also store copies of e-invoices as evidence of tax.
How to process and exchange e-invoices in Poland
Taxpayers need both an ERP system and an e-invoicing service provider that aggregates their financial records with KSeF to process and exchange e-invoices in Poland.
E-invoicing is voluntary for Poland’s B2B and B2C companies until 2024, so businesses must learn to stay compliant.
Here are a few steps to follow to remain compliant and exchange e-invoicing in Poland.
- Upgrade existing ERP: You can upgrade an in-house ERP system to meet the requirements of the e-invoicing mandate in Poland. Alternatively, you can use an e-invoicing service provider that helps to connect the ERP system to the Polish e-invoicing systems with an API.
- Integrate the ERP with PEF/KSeF: If you’re a public entity or government, you should integrate your ERP with the PEF. PEF is equivalent to KSeF but strictly for B2G transactions. All public entities must register their account on PEF. B2B and B2C companies will integrate their ERP with KSeF.
- Prepare invoices in XML format: Taxpayers will prepare e-invoices in their ERP platform according to FA_VAT’s specified format, FA_VAT.
- Transfer e-invoice to the KSeF: After the ERP has formatted the e-invoice to the XML format, it is then transferred to the KSeF website for verification.
- Verification of e-invoice: The system checks format compliances when an e-invoice is sent to KSeF. A structured e-invoice will contain information related to the payment, payment procedure, and transaction terms. Therefore, an approved e-invoice is stamped and indexed with a unique number.
Exchange compliant e-invoices with Storecove
Poland looks to digitize business operations, close the VAT gap, tackle tax fraud, and cut invoicing costs. The country has created two platforms to enable a seamless national and cross-border e-invoicing exchange, one for B2B and one for B2G transactions.
A single API connection should be sufficient if you need to connect your business or software to the KSeF and/or PeF system.
All taxpayers must issue and receive e-invoices from 2024, so preparing for this upcoming regulation is important. If you need help with e-invoicing compliance in Poland and/or more countries, feel free to request a consult.
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