The Polish Edition of Electronic Invoicing Requirements: An Overview

Poland has introduced a national electronic invoice system (KSeF), initially as a voluntary option but transitioning to a mandatory requirement by July 2024. This initiative marks a significant stride in the country's tax administration, streamlining the process of invoicing and VAT compliance.

Electronic Invoicing à la Poland

The Polish tax authorities are gradually implementing electronic invoicing requirements. The National Electronic Invoice System (KSeF) has been available for voluntary use since January 1, 2022. Significantly, electronic invoices issued through this system have been accepted for the deduction of input VAT from the onset.

An electronic invoice is one that is issued, transmitted, and received in a structured data format, enabling automatic and electronic processing. While this may sound technical, it essentially means that the invoice from the seller is issued in a computer-readable format, which can be automatically imported into the buyer's financial system without additional manual entry, enhancing efficiency and simplicity.

The introduction of electronic invoicing affects invoicing processes, document circulation, and the billing/financial systems used by businesses.

Compliance with EU Regulations

Historically, countries wishing to implement mandatory electronic invoicing had to seek prior approval from the EU Commission. Poland has undergone this process and received approval to mandate electronic invoicing for business-to-business (B2B) transactions within the country.

Mandatory Timeline for Electronic Invoicing in Poland

As announced by the Polish tax authorities, the national electronic invoice system (KSeF) is expected to become mandatory from July 1, 2024.

Scope of Mandatory Electronic Invoicing

The mandatory B2B electronic invoices in Poland will cover all domestic transactions, excluding:

• Sales to Polish consumers (B2C)
• Invoices issued under the OSS or IOSS schemes (also B2C sales)
• Tickets, such as those issued on toll highways, are also exempt from the mandatory electronic invoicing through the KSeF system.

Impacted Businesses

Various types of businesses will be affected by these electronic invoicing rules, including:

• VAT-registered businesses
• Non-VAT-registered businesses, as they will also need to be able to receive e-invoices
• Foreign businesses registered for the special EU OSS procedure with a Polish tax identification number (NIP)

However, foreign companies are generally exempt from the obligation to use KSeF unless they have a permanent establishment in Poland with associated VAT registration.
Therefore, in the near future, a Danish company with VAT registration in Poland, for instance, due to having a warehouse there, need not worry about investing in new IT equipment/programs capable of creating and receiving invoices in the authorized KSeF format.

For more detailed information about the Polish rules regarding e-invoicing, you can read more here: Informacje o KSeF 

Moreover, it's important to consider potential disadvantages of being VAT registered in Poland, especially if expecting regularly negative VAT returns. More information on this can be found on: IntraVAT's LinkedIn page.