National e-Invoicing System – what is it and what is it based on?

The National e-Invoice System (KSeF) is a nationwide ICT system that is the next step on the road to full digitalisation. The aim of the National e-Invoice System is to create the possibility for taxpayers to issue and make available structured invoices. Structured invoices are one of the forms of documenting transactions permitted in the economy – the others being traditional paper invoices and electronic invoices. For the time being – May 2022 – the National e-Invoice System is a voluntary solution: this means that any taxpayer can issue structured invoices, but can also stay with traditional sales documents. The Polish government’s further plan is to transform the KSeF into a mandatory system – this step, however, depends on the derogation decision of the European Commission.
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As of now, January 2024, the National e-Invoice System is a voluntary solution: this means that any taxpayer can issue structured invoices, but can also stay with traditional sales documents. And although for a long time – since January 2022 – entrepreneurs were assured that KSeF would become mandatory as early as July 1, 2024, nothing of the sort will happen. Finance Minister Andrew Domanski officially announced on January 19, 2024, that the obligation to use the National e-Invoicing System will not go into effect in July or at all in 2024.

Despite this earthquake, the minister assures that KSeF is a needed system and will certainly be introduced at a later date.

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What is the National e-Invoicing System all about?


Who can use the KSeF?


Download the e-book "How to implement the National e-Invoicing System?"

How to issue an e-invoice in KSeF?


Important!

If you want to see how the KSeF Taxpayer Application works, test its functions, choose the trial version. If you choose the production version of the Taxpayer Application and issue an invoice in it, it will become a document entered into legal circulation. The production version is therefore the final one. It is already being used by companies that have decided to implement and launch KSeF. Once the mandatory use of the system is in place, all taxpayers will be able to use the KSeF Taxpayer Application to issue structured invoices.

Structure of the e-invoice in KSeF

  • The mandatory fields of the e-invoice must be completed regardless of the circumstances. This category includes such information as the data of the seller and buyer, the date of issuance of the document or the date of performance of the service (delivery of goods).

    In the context of KSeF, it is worth remembering that negative indications, i.e. information that a circumstance does not exist, should also be introduced in the e-invoice. A value of 1 indicates the presence, while a value of 2 indicates the absence of the circumstance.

    In the case of paper invoicing, such action is not required, but in KSeF it is a necessity. Nonetheless, it is expected that this obligation will be reflected in the functionality of the KSeF Taxpayer Application, and it will not be possible to omit such a field when issuing an e-invoice.

EXAMPLE

National e-Invoicing System – from when will it be mandatory?


The National e-Invoicing System was launched on January 1, 2022. – However, until now, taxpayers are not obliged to use it. Initially, KSeF was to become mandatory in July 2024, but currently (as of January 2024) we do not know the launch date for all taxpayers.

Where does this state of affairs come from? On January 19, 2024, Finance Minister Andrew Domanski announced that the National e-Invoicing System will not be mandatorily introduced in 2024.

Why won’t KSeF be introduced in 2024?


Andrzej Domanski cites critical errors that the Finance Ministry discovered in the course of analyses to assess the effectiveness of KSeF as the reason for stopping the changes. According to reports, bugs have been found in code, features and performance.

According to Marcin Baj, a tax advisor at LTCA, the capacity of the system in its current form is not sufficient, and Polish entrepreneurs could be put in a situation where they are unable to issue invoices.

The next step, after a strong response from the MF, is to commission and conduct an external audit, which is expected to result in a full list of KSeF’s errors and problems. Only after the results of the inspection will it be possible to establish an action plan and an estimated date for implementing the system.

SME spokesman triumphs


For many weeks now, voices have been heard saying that businesses are largely not ready to adopt the National e-Invoicing System. One of the more high-profile ones was the initiative of Poland’s SME ombudsman, Adam Abramowicz, who sent an open letter to the Finance Minister, calling for the introduction of KSeF to be staggered.

In the variant proposed by the representative of small and medium-sized entrepreneurs:

  • On July 1, 2024, KSeF would become mandatory for large companies,
  • On January 1, 2025, they would be joined by medium-sized companies,
  • July 1, 2025 small taxpayers,
  • January 1, 2026 microenterprises and sole proprietorships.

We already know that this timetable has not been adopted, but the main assumption of the SME ombudsman has been fulfilled and we will still wait for the mandatory KSeF.

What does the introduction of the mandatory use of the National e-Invoicing System mean?

Although the preparation period is well under way as of early 2022, still many companies are not ready to implement the system. Moreover, it is speculated that this is the vast majority of Polish entrepreneurs, especially small and micro businesses. Implementing KSeF is a complicated process that requires not only commitment and time, but also the resources needed to purchase the appropriate software or train employees.

By extending the deadline for making KSeF mandatory, businesses have been given valuable time to plan work and implement the system at a leisurely pace. On the other hand, it is also important to remember the large entities that have already prepared for KSeF implementation, often spending a lot of money. The next few months will bring us the answer to the question of whether any additional steps will be taken in this matter.

Benefits of KSeF

Download the e-book "How to implement the National e-Invoicing System?"

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