All about B2B e-invoicing in Poland

Currently, e-invoicing in Poland is not yet mandatory, but businesses have the option to issue e-invoices instead of traditional paper invoices. The use of e-invoices in Poland is supported by the government and is expected to increase efficiency, save time and reduce costs for businesses. While the adoption rate is lower compared to other European countries, the trend is slowly picking up with more businesses realizing the benefits of electronic invoicing.

Poland plans to become one of the first countries in the world to mandate B2B e-invoicing standards. E-invoicing is currently mandatory for B2G transactions, but B2B is done on a voluntary basis. It will be subject to obligatory invoicing starting in July 2024 by using the KSeF platform.

Latest B2B VAT news

• The start date of the mandatory electronic invoicing implementation in B2B transactions has been delayed from 1 January 2024, until 1 July 2024.

• Taxpayers below the threshold of 200,000 PLN (approx. 44,000 EUR) will have a postponed implementation deadline of 1 January 2025.

• In Poland, mandatory invoices issued from cash registers and, in addition, cash receipts with purchasers' VAT ID and value of up to 450 PLN (approx. 99 EUR) will also be deferred until 31 December 2024.

• Fines for KSeF non-compliance will be lessened and delayed until 1 January 2025.

Polish electronic invoice legislation timeline

• 2019: Mandatory B2G e-invoicing via Peppol.

• 1 January 2022: Structured invoices are offered as a voluntary option for Polish taxpayers.

• 1 December 2022: The Polish Ministry of Finance released draft legislation regarding mandatory e-invoicing during the stipulated period, along with a draft revision of the e-invoice schema known as FA(2).

• 15 March 2023: The most recent draft of proposed legislation governing e-invoicing announced by the Ministry of Finance. Governmental legislative procedures are currently still in progress.

• 1 July 2024: Proposed deadline for obligatory B2B e-invoicing with certain exceptions.

Who is affected by the e-invoicing mandate in Poland?

Obligated issuers

• Local entities

• Fixed establishment (FE) foreign entities - in the case of FE intervention in transactions are subject to VAT in Poland

• Self-billing invoice issuers - typical in B2B situations

• VAT-exempt taxpayers - must be under the turnover threshold as of January 1st, 2025

Foreign Taxpayers

• FE foreign entities - must issue invoices to the KSeF portal

• Non-FE foreign entities - KSeF standards done on a voluntary basis

Covered Transactions

• B2G transactions - currently voluntary for suppliers through the PeF platform

• B2B transaction - including both national and foreign taxpayers after 1 July 2024. Until then, they can use the KSeF platform voluntarily

Exempt Transactions

• B2C transactions - although potentially implemented in the future

• OSS/IOSS transactions

• Fees for air traffic service routes

• Highway tolls and passenger transport services - if documented only for single-fare tickets

Key areas of impact

• AR and AP process automation

• Efficient standardization of e-invoicing regulations

• The software environment changes with a necessary re-evaluation of the current market offerings' ability to implement the new changes via using KSeF

• Opportunity for improved business decisions through internal reporting, more accurate data and document interchange

• Increased oversight of tax authorities

KSeF (Krajowy System e-Faktur) - national e-invoicing system

Similarly to other countries such as Serbia and Italy, Poland has created a national electronic invoicing system called Krajowy System e-Faktur (KSeF). KSeF is a central platform through which taxable persons established in Poland can comply with obligatory e-invoicing. Standardized and structured e-invoicing has many benefits over the previous system of invoicing in Poland such as VAT return times decreasing to 40 days instead of 60.

Users can download invoices in XML or PDF format via the KSeF national platform although they are technically not treated as electronic invoices in Poland anymore under the new legislation.

Functions

• Sending and receiving e-invoices

• Validation for invoices

• ID assigning

• Archiving for 10 years

Goals

• Increase governmental oversight and transparency of VAT standings by facilitating a reliable e-invoicing platform.

• Speed up and standardize the invoicing process through a structured invoice template

  • Invoices are prepared through an ERP according to the correct format, transmitted to KSeF through an API, checked for validation, and assigned a KSeF number

• Prevent fraud and provide increased security

  • Authentication through qualified electronic signatures, trusted profiles or generated token

• Increase the value of VAT revenues to raise the national budget

Benefits

• Reduce VAT refund times by 20 days (from 60 days to 40)

• Standardizing and simplifying the invoicing process

• Decrease in human error through automation of AR and AP processes

• More control over tax collection

What to keep in mind

• Possible KSeF system outages - these may be common in the beginning stages of implementation resulting in a temporary inability to access the platform

• Audit requirements - must ensure data availability and quality within users' ERP and archiving system

• Compliance - when sending or receiving from another country, must make sure that both parties comply with the local standards

• Integration - the ability of a taxpayers' ERP software to properly integrate with KSeF

Polish e-Invoicing Platform - Platformy Elektronicznego Fakturowania (PeF)

The PeF is the central platform through which B2G e-invoicing is currently conducted. It uses a standardized XML format based on the Peppol network in order to send and receive invoices.

It consists of 2 Peppol Access Points which can be implemented through e-invoicing service providers such as DDD Invoices who send the e-invoice through KSeF and deliver the invoice to the client.

Until further notice and depending on final regulations in Poland, both PeF (B2G) and KSeF (B2B) will be in use.

How DDD Invoices can help

DDD Invoices simplifies e-invoicing for companies by providing an e-invoicing solution that integrates into their existing software. This allows companies to automate the invoicing process and eliminate the need for manual data entry on the PeF and KSeF platforms. We handle e-invoice creation, distribution, and archiving, allowing you and your clients to send and receive e-invoices seamlessly within your existing software.

We stay up to date with local tax regulations so you don’t have to. Comply with mandatory B2B e-invoicing with ease and if we do not currently serve a territory where you require e-invoicing, let us know, and we can develop it in 2-3 weeks. This way, we can ensure your VAT compliance at all times, wherever you do business.

FAQs about e-invoicing in Poland