What’s next for National e-Invoice System (KSeF)?

One thing is certain: there is no turning back from National e-Invoice System [hereinafter: KSeF]. This was confirmed by the Minister of Finance, Andrzej Domanski, on 21 March 2024 at a meeting where representatives of the ministry summarised the consultation cycle on KSeF and outlined the planned changes to the legislation already enacted. We undoubtedly have a new opening of the KSeF by the new government team. The ministry has shown openness to the voice of business and has taken into account some of the comments made during the consultation, although many practical problems have not been addressed.

Deadlines

The new implementation date for KSeF is still unknown – this is expected to be announced in late April/early May this year following the completion of a technical audit of the system, which is currently being carried out due to significant concerns about the capacity of the system. An important change is to be a single implementation date for the mandatory KSeF for all taxpayers – active and exempt. The good news for large companies is that the demands made by some circles for the KSeF to be introduced in stages – in order from large, through medium, to small enterprises, respectively – have not been accepted. This will definitely make it easier to implement the KSeF in large companies, without the need to identify the status of the purchaser and a separate invoicing method.

As early as 3 April, draft legislative changes and interface specifications are to be presented for a simplified consultation. The entire legislative process is expected to be completed before July, followed by the release of tax explanations and documentation in English.

Announced changes to the KSeF

The MF has announced a number of significant changes to the assumptions for the operation of KSeF, notable among them:

• consumer invoices – it will be possible to optionally issue consumer invoices in KSeF – this is a big improvement for companies making bulk sales of goods or services that invoice all customers, so they will not have to distinguish between customers and introduce separate invoicing processes;
• identification of the purchaser’s status – the MF announces the ‘self-identification’ of the purchaser, purchasers – taxpayers registered for VAT will use a VAT number and exempt taxpayers not registered – NIP (Polish tax identification number). In practice, it is the same number. However, it will be necessary for the purchaser to provide NIP number in order to account for the cost in income taxes;
• invoice attachments – there will be a new scheme for sending an attachment to an invoice in selected industries, i.e. for invoices issued by suppliers of ‘utilities’, telecommunication services and other ‘summary’ invoices, by which the MF understands summary invoices for fuel, although the development of structured attachments for other industries is not excluded either;
• paper invoices – for a transitional period (as yet unspecified), it will be possible to issue paper invoices by ‘digitally excluded’ taxpayers operating on a relatively small scale, within the limits of the amount limits – for a single invoice of up to PLN 450 and a total monthly value of up to PLN 10,000. Such invoices are to be marked accordingly in the JPK file – this means further changes to the JPK_VAT file;
• offline mode – for a transitional period (as yet unspecified), it may not only be used in case of failures, e-invoices will be able to be issued offline outside KSeF with a QR code and sent to KSeF on the next working day;
• deferment of penalties – penalties for non-compliance with KSeF are to be deferred;
• KSeF number or collective identifier in transfers – the Ministry has announced the postponement of these obligations and, in addition, the postponement of penalties for failing to include these numbers in the payment title of an invoice covered by the split payment mechanism;
• cash register invoices and receipts with NIP up to PLN 450 – will operate in a transitional period with a delayed obligation to include them in the system.

Training and information campaign

The MF has announced an extensive information and training campaign on KSeF – training sessions will be held in tax offices, a dedicated helpline and an application form for questions will also be made available. Documentation on the KSeF (including brochures and technical specifications) is to be translated into English. A mobile app for communicating with the KSeF is to be made available in the second half of April.

What was missing?

A number of important issues raised as problematic by business and experts during the consultation were not addressed by the MF. These include:

– the lack of reference to the EC changes being introduced at EU level as part of the ViDA package – the draft amendments to the VAT Directive provide for the obligation to issue electronic invoices in the EU format (with which our xml format is incompatible) for taxpayers from all Member States in respect of intra-Community transactions (goods and services),

– no resignation from the dependence of the moment of issuing a structured invoice on its submission to KSeF,

– lack of resignation from the inclusion of foreign entities with a fixed establishment in Poland in the compulsory KSeF,

– lack of introduction in the structured invoice scheme of the mandatory field Podmiot3 in the case of invoices issued to local government units.

In summary, the changes announced by the MF are undoubtedly beneficial for taxpayers, although many issues are still unclear. It now remains to wait for the publication of the draft amendments to the Act and the regulations.