The Polish Ministry of Finance issued a statement changing the implementation date of the KSeF (Krajowy System e-Faktur) platform for electronic invoicing to July 1, 2024. This new ruling will impact all businesses established in Poland that are obliged to issue and receive electronic invoices.
The Polish government introduced e-invoicing in 2019 by adopting PEPPOL for B2G transactions. The country is progressing with its e-invoicing strategy, introducing KSeF, the National Electronic Invoicing System, for B2B transactions.
The system will streamline invoice issuance and ensure secure data transmission between businesses. It will also help companies to comply with their legal obligations, maintain accurate records, and provide more transparency in invoicing.
The KSeF is a central platform that will apply a digital stamp to the invoice, allowing governments and tax authorities to track all invoices in real time. It will provide a series of notifications informing users about the progress of their invoices and any changes or updates to them.
In this article, we explain the current e-invoicing rules in Poland and the details of the KSeF platform. You will also find out how it will impact businesses and the steps to send compliant invoices in Poland.
What are the current e-invoicing rules in Poland?
Poland has gradually introduced electronic invoicing rules since 2019, starting with adopting PEPPOL for B2G transactions. The current law has been in effect since 2019 and requires all public sector entities to accept and process electronic invoices.
The law does not make it mandatory for suppliers of public sector entities to receive and process electronic invoices. But this will change with the introduction of the KSeF system in 2024.
The SAF-T (Standard Audit File for Tax) system is the current standard for submitting VAT returns. The Polish Ministry of Finance requires companies to submit SAF-T files for VAT reports as electronic documents.
Poland's tax authority, Urzad Skarbowy, collects and processes e-invoices. It accesses and inspects them for VAT returns using a dedicated portal, which connects the tax authority to companies in the country.
E-invoicing mandate from 2024
The transformation of the Polish e-invoicing system with the introduction of the KSeF platform is part of the country’s strategic plan to make electronic invoicing mandatory. It will mandate B2B e-invoicing from July 1, 2024, and all businesses in Poland will be expected to comply.
The KSeF system is designed as a central repository for B2B e-invoicing. It will apply a digital stamp to the invoice, allowing governments and tax authorities to track invoices. The stamp will be an authentication tool, ensuring the invoice is legitimate and from a trusted source.
What is the KSeF platform (Krajowy System e-Faktur)?
KSeF (Krajowy System e-Faktur) is Poland's National E-Invoice System under development. It is a central platform that will receive, validate, and process all B2B invoices, ensuring businesses comply with their legal obligations and provide more invoicing transparency.
KSeF will apply a unique digital time stamp to each invoice, acting as an authentication tool for governments and tax authorities.
It will also provide a series of notifications informing users about the progress of their invoices, including the number assigned through the time stamp, the inability to issue an invoice due to system error, and changes or updates to existing invoices.
The Polish government set the KSeF platform to launch in January 2023, but due to requests for preparation from businesses and e-invoice providers, the launch date was pushed to July 1, 2024. The implementation is taking place in stages. They include:
Test period
In October 2021, the Polish Ministry of Finance allowed service providers to participate in a two-month testing period for the KSeF platform. They tested the platform's functionalities and technical aspects and submitted feedback to help improve the system.
Voluntary phase
Businesses in Poland joined the KSeF platform voluntarily from January 1, 2022. They could issue structured electronic invoices to the platform and enjoy tax benefits.
Mandatory phase
All businesses in Poland are expected to comply with e-invoicing rules by July 1, 2024. They must issue invoices in FA_VAT (XML) format on the KSeF platform and follow the guidelines for submitting electronic documents.
How to send compliant e-invoices in Poland?
Poland currently has two platforms for submitting invoices: PEF (Platforma Elektronicznego Fakturowania) and the KSeF platform. PEF was the first platform launched in 2019 and is presently being used for mandatory B2G e-invoicing.
KSeF is the platform undergoing implementation and will be used for mandatory B2B e-invoicing from July 1, 2024. It will also include B2C (Businesses to Customers) e-invoicing but will not apply to tickets treated as invoices, such as toll tickets.
Let us look at the two platforms:
PEF (Platforma Elektronicznego Fakturowania) platform
The PEF platform was launched in 2019 to secure electronic invoice transmission between businesses and government entities. It is currently used for B2G e-invoicing and tax returns and operates in the PEPPOL network.
Here are the steps to send PEF-compliant invoices:
1. Register with PEPPOL
Register your company with PEPPOL and fill in the PEPPOL Business Interoperability Specification (PEPPOL BIS) 3.0 form to create your profile. When you generate an invoice, the information you enter will automatically appear as the sender of the invoice.
2. Choose a PEPPOL Access Point provider
PEPPOL allows you to choose a reliable Access Point Provider, such as Storecove, as a gateway between your company and the receiving PEPPOL network.
They will provide support with the technical aspects of sending and receiving e-invoices and ensure you comply with the requirements of each country.
3. Issue e-invoices through PEPPOL
Your provider will link your system to PEPPOL and allow you to issue compliant e-invoices and send them to the PEF platform. Fill in the relevant fields and provide the required information.
After validation, the invoices are sent to the recipient's PEPPOL Access Point.
KSeF (Krajowy System e-Faktur) platform
The KSeF system is already open for voluntary use by businesses until it becomes mandatory in 2024.
The process for using the KSeF platform is pretty straightforward if you have a reliable e-invoicing provider. They will help you integrate with the platform and send compliant e-invoices. Here are the steps involved:
1. Integrate with a reliable e-invoicing provider
You will need to pick a reliable e-invoicing provider that can help you integrate with the KSeF platform. Storecove is one of the most reliable e-invoicing providers that can help you simplify the process.
They will provide simplified invoices that adhere to the Polish guidelines and help you issue compliant invoices on the KSEF platform. You will also get real-time updates, notifications, and control over the entire process.
2. Create the invoice in your ERP (Enterprise Resource Planning) system
Use your ERP system to create the invoice and add mandatory information such as the buyer’s name, address, tax ID number, etc. Your provider will extract and convert the information into the compulsory XML format.
Complying with mandatory e-invoicing in Poland is a legal requirement and good business practice. It will help you streamline processes and minimize opportunities for tax fraud.
3. Forward the invoice to the National e-Invoicing system (KSeF)
Once your provider converts the invoice into a compliant XML format, you can delete or send your invoice to the KSeF portal. You can also monitor the invoice in XML or PDF format and add notes or attachments.
The invoice is evaluated, and when approved by the KSeF, a digital time stamp is added. It is then forwarded to the buyer’s ERP system, who will receive a notification.
If, for some reason, the invoice is rejected, you will be notified of the grounds and can make the necessary corrections. You can resend the invoice for further evaluation.
Characteristics of the electronic invoice in Poland
Poland’s e-invoicing system started in 2019, and electronic ones gradually replaced paper invoices. The country is making huge strides in electronic VAT reporting and receiving invoices. The tax body has established a few criteria that invoices must meet:
Obligation
Public administrations must receive and issue e-invoices through the PEF platform. However, it is voluntary for their suppliers.
The incoming KSeF system will change this, as it will be mandatory for all companies in Poland to receive and issue invoices on the platform.
Format
The PEF platform operates under the PEPPOL standard, which requires invoices to be in a UBL2.1 or PEPPOL BIS 3.0. format. Your e-invoicing service provider can help you with the integration and ensure that your invoices are compliant.
Under the KSeF platform, you must use the FA_VAT XML format to issue invoices.
Digital signature
Adding a digital signature is not mandatory, but it is recommended as it adds an extra layer of security. The new system will use digital time stamps on every invoice for easy tracking.
Archiving
Poland demands that you keep the invoices for at least 5 years in either PDF or XML format. This is necessary to ensure there are no discrepancies when auditing.
The KSeF platform will streamline archiving and allow you to store invoices for up to 10 years. You can search and download archived invoices from the portal when needed.
What should businesses do to comply with current and upcoming e-invoice regulations in Poland?
Businesses that have not yet begun using the KSEF platform should take several steps to ensure compliance. Let’s have a look at them below.
Upgrade existing ERP systems
Ensure that your ERP system meets the digital invoice requirements as required by KSEF or PEF. This means it must be able to generate and receive electronic invoices in the applicable XML format.
A much better option is to use an e-invoicing service provider to ensure compliance.
Integrate ERP systems with KSeF or PEF
Public administrations must integrate their systems with the PEF system for B2G e-invoicing. For B2B invoices, businesses should integrate their ERPs with the KSeF system in preparation for the upcoming mandate.
Implement a reliable e-invoicing solution
Businesses should find a reliable invoicing provider like Storecove that can offer end-to-end e-invoicing solutions. This will help automate the process and ensure compliance with the regulations.
Takeaway: Prepare for Poland’s upcoming e-Invoicing mandate by familiarizing yourself with the requirements
Poland is making e-invoicing a necessity for all businesses. Companies should upgrade and integrate their ERP systems with the PEF or KSEF e-invoicing platform to keep up with the regulations.
The best way to achieve this is using an e-invoicing service provider. Storecove offers an all-in-one e-invoicing solution that meets the e-invoicing requirements in Poland.
Schedule a demo with Christian Land, our e-invoicing expert for Poland, and get ahead of the e-invoicing mandate with Storecove!
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