Pursuant to the amendment of the Act on Value Added Tax and certain other acts of 16 June 2023, electronic invoicing using the National System of e-Invoice (hereinafter: “KSeF”) will become a new obligation for entrepreneurs. Currently, the use of the KSeF system is voluntary, whereas from 1 July 2024 KSeF will be a mandatory solution for:

• entrepreneurs who are exempt from VAT;
• entrepreneurs registered as active VAT taxpayers;
• taxpayers verified in Poland for the EU VAT-OSS procedure, who have a Polish tax identification number NIP.

For small and medium-sized VAT-exempt entrepreneurs the mandatory use of the system is postponed to January 2025.

KSeF allows the structured invoices with a unique identification number to be issued and shared. The issuer of the invoice receives an official acknowledgement of receipt and the recipient of the invoice can access it through a profile in KSeF or by indicating the invoice details. The system also enables granting, changing or withdrawing of KSeF access rights or the analysis and control of the correctness of data in the e-Invoices issued.

This is a fundamental change for entrepreneurs. When the planned amendments come into force, each invoice will have to be issued in electronic form and entered into the system. The invoice will be submitted to a system verification process to ensure that it meets the requirements of a so-called structured e-Invoice (XML format, user authorisation in KSeF, invoice without attachments).

The introduction of KSeF means that existing accounting software and internal procedures will have to be adapted to the new legal requirements.  Also, it must be pointed out that in order to effectively register with KSeF, it is necessary to have a qualified electronic signature, a qualified electronic seal or a trusted signature.

This form of record-keeping will simplify the process of controlling entrepreneurs’ accounts through remote monitoring by tax authorities, which will reduce the risk of malpractice in this area.

In addition, the amendment introducing the electronic invoicing obligation for entrepreneurs provides for, among other things:

• automatic archiving of issued invoices;
• simplified circulation of documentation to streamline the accounting process and mutual settlements between entrepreneurs;
• a shorter VAT refund waiting period to 45 days (currently 60 days);
• a unified invoice template will make it easier for entrepreneurs to issue invoices;
• a possibility to download documentation from a database maintained by the Ministry, which minimises the risk of loss/destruction of invoices;
• certainty that an invoice will be received by the recipient through electronic acknowledgement of receipt (where the recipient chooses this form).

It is worth mentioning that, at this stage, the functioning of the KSeF still raises a number of practical doubts with regard to the matters that are not explicitly regulated by the Act. These concern in particular the technical aspects of the functioning of the system itself or verification of the status of the buyer (with respect to excluding from the KSeF the invoices issued to natural persons not conducting the business activity).