Understanding the new KSeF invoicing system in Poland

In a recent webinar, we discussed the implementation of the KSeF invoicing system in Poland, which aims to streamline the invoicing process for both domestic and international transactions. This blog post will summarize the key points we covered in the webinar, providing valuable insights for businesses operating in Poland.

Scope and coverage

The KSeF system is designed to cover entities established in Poland, as well as foreign companies with a fixed establishment in Poland. It mandates the issuance of B2B invoices through the KSeF system, ensuring compliance with national invoicing regulations. The system also covers cross-border transactions to some extent, requiring the transmission of invoices to KSeF and then to foreign contractors via an agreed manner.

Validation and issuance process

The KSeF system validates invoices from two perspectives: technical correctness and authorization. Invoices can be sent individually or in batches, but any error in a batch will result in the rejection of all invoices in that batch. Once validated, invoices are assigned a KSeF ID and considered valid structured invoices. Polish purchasers can download invoices directly from KSeF, eliminating the need for separate invoice transmission.

Benefits and challenges

The KSeF system offers several benefits, including a shorter VAT refund limit, simplified settlement of correction invoices, and the elimination of the need to archive invoices. However, it also presents challenges, such as the need for businesses to adapt their IT systems to accommodate the new requirements and the administrative burden of managing collective payments.

Practical aspects

Businesses must ensure that invoices include specific elements, such as purchase order numbers or contract numbers, to facilitate the assignment of invoices to the correct department or individual. Additionally, the KSeF system will eventually require all invoices, including those for small amounts, to be issued through KSeF, further emphasizing the need for businesses to adapt their processes.

Future developments

The Ministry of Finance is working on a new version of the KSeF schema, which will introduce some changes and simplifications. The new schema is expected to be mandatory starting in 2026, and businesses should stay informed about these developments to ensure compliance.

Conclusion

The implementation of the KSeF invoicing system in Poland represents a significant change for businesses, requiring them to adapt their processes and IT systems. However, the benefits of streamlined invoicing and reduced administrative burdens make it a worthwhile investment. Stay tuned for further updates on the KSeF system and how it will impact your business.