Progress in respect of Poland’s envisaged Business-to-Business (B2B) e-invoicing mandate faded somewhat since the announcement of its postponement from July 2024 to February 2026. However, Poland’s Ministry of Finance has started to pick up the pace with plans for e-invoicing mandate implementation.

A consultation, scheduled for mid-July 2024, covered the following aspects:

• Postponing the liquidation of invoicing in cash registers
• Consumer invoices
• Including additional data on the invoice.

Feedback has now been provided on the July consultation.

This has yielded some proposed modifications, which include:

• The inclusion of attachments, particularly for industries which send across complex data
• An interim offline mode, which has been touted as voluntary during a potential transitional period. The offline mode covers instances where invoices are issued outside KSeF with a QR code and subsequently sent to KSeF.
• Paper invoice permissibility for small taxpayers during the transitional period.

The position of Business-to-Consumer (B2C) invoices are still under consideration.

One of the most significant proposed changes is a revised Polish Schema format. Prior to the mandate postponement, this had taken the form of the FA2. However, a revised format, draft FA3, is now expected to be published in September 2024. The FA3 will be subject to a public consultation, as is the schema for the proposed attachment. The publication of a new draft Act incorporating the key changes is expected to follow a similar timeframe.

The consultations appear to be motivated by the need to simply Poland’s previous e-invoicing infrastructure, following multiple complications identified with the KSeF platform.

Tungsten Automation had been on track to deliver a compliant e-invoicing solution in Poland in line with the original mandate commencement date of 1 July 2024. Tungsten Automation is committed to delivering a compliant solution by 1 February 2026.

We continue to follow the Polish Ministry of Finance publications for a final and definitive indication of Poland’s e-invoicing plans.

Poland’s e-invoicing mandate postponement has now officially been signed into law. The Polish president signed the amendment into the country’s legislative framework on 5 June 2024.

The Act introduces specific changes to the Act of 16 June 2023, which amends the Act on tax on goods and services (VAT) and specific other acts (Journal of Laws of 2023, item 1598).

The link to the legislation in Polish can be accessed below:

• https://www.prezydent.pl/prawo/ustawy-podpisane/ustawy-podpisane-w-czerwcu-2024-r,86884

A further link to the legislative process can be accessed below:

• https://www.sejm.gov.pl/sejm10.nsf/PrzebiegProc.xsp?nr=341

The legislation confirms that B2B e-invoicing obligations for impacted taxpayers in Poland will commence on 1 February 2026 for companies whose annual turnover exceeds 200 million PLN. Remaining taxpayers must comply with e-invoicing obligations from 1 April 2026.

The KSeF number, which was required on payments under original plans, will now be become obligatory from 1 August 2026.

In addition to the President signing the Act into law, the Polish tax authorities have also launched a mobile application that will facilitate the issue of basic invoices and corrections. Taxpayers can also view issued and received invoices via the application.

Further information concerning the mobile application can be found here.

Increasing inflation in the country had forced Poland’s hand to impose a 0% VAT on basic food products, down from an initial rate of 5%. Spiralling inflation, contributed in part by the Russia / Ukraine conflict, resulted in increased economic burdens for residents, which in turn compelled the Polish government to reduce the VAT rate.

However, inflation Poland has abated, following a similar paradigm shift seen across the continent. From an initial high of over 18%, it has now reduced to 4%. This directly impacts fiscal policy.

From 1 April 2024, the Polish government will re-impose the 5% VAT rate on all basic food products.

Poland is compliant territory for Tungsten Automation and our e-invoicing solution supports all valid VAT rates in the country.

Tungsten Automation is also planning to accommodate Poland’s upcoming B2B e-invoicing mandate. You can read more about that here.

The objective of Poland’s Business-to-Business (B2B) e-invoicing consultations, as initiated by the Polish Ministry of Finance, was to obtain feedback from multiple stakeholders on how the country’s national e-invoicing platform, Krajowy System e-Factur (KSeF) could be adapted to create a fit-for-purpose and efficient solution for taxpayers.

The February and March 2024 consultations have now yielded some significant outcomes, which will determine the trajectory of Poland’s upcoming e-invoicing mandate.

Some of the key findings have been summarised below:

• VAT exempt taxpayers. Under original plans, VAT exempt taxpayers were required to comply with e-invoicing obligations 6 months after most other Polish companies. The Polish Ministry of Finance is now favouring a ‘big bang’ approach, where VAT exempt taxpayers will comply with e-invoicing commitments alongside all other Polish companies.
• The establishment of a transitional period. Under such a transitional period, penalties for non-compliance will not apply. The transitional period is expected to be functional for 6 months. Its exact timeframe will be determined by the mandate inception date, which will be announced in April / May 2024. Critically, there is no requirement to include the KSeF ID, or collective identifier if applicable, on payments during the transitional period.
• Cash register invoices. Initially, cash register invoices were not expected to fall under the category of a valid invoice from 2025. This has now been postponed.
• Business-to-Consumer (B2C invoices). B2C invoices can optionally be issued via KSeF.
• The ‘offline mode’, where invoices are issued outside KSeF with a QR code, will be available for all taxpayers within the transitional period.
• Paper invoices. Paper invoices can be issued for ‘digitally-excluded’ taxpayers who issue invoices for small amounts (450 PL per invoice and 10,000 monthly) during the transitional period.
• Attachments. Attachments will be permitted for specific industries (utilities and telecommunication services), with the introduction of a new schema to this effect.

The Polish Ministry of Finance is expected to provide an amended draft Act in April 2024 incorporating the modifications, with a public consultation to follow.

Poland’s e-invoicing mandate infrastructure still has significant outstanding issues that require further consideration- namely:

• The self-invoicing process involving EU entities
• The buyer certificate
• Quick Response (QR) codes
• Technical considerations around the correction procedure.

The Polish Ministry of Finance will present 4 draft proposals to this effect in April 2024, with a view to reaching consensus on these issues.

Tungsten Automation is cognizant that the coming months are expected to churn significant information which will dictate Poland’s final e-invoicing solution. We are monitoring the progress of the draft Act, including its publication and subsequent draft consultation. With the legislative process expected to conclude in the summer of 2025, we hope to be in a position to communicate Poland’s definitive strategy for an e-invoicing solution to our Product, R&D and wider teams at this stage.

Last month, Tungsten Automation communicated that the Polish Ministry of Finance had postponed the country’s planned upcoming B2B e-invoicing mandate. You can access the official press release briefing confirming the postponement here.

The e-invoicing and business community have raised multiple questions further to the postponement. The Polish Ministry of Finance has now provided further information around the delay.

A revised date has not yet been set but is expected to be announced in April or May 2024.

The delay was triggered as a response to critical errors identified in the KSeF functionality. In response to this, the Polish tax authorities have initiated extensive public consultations, and formulated working groups to work on specific aspects of their e-invoicing solution. However, they have confirmed that they do not anticipate significant technical changes to the KSeF functionality, which will provide reassurance to businesses who have already began to implement the changes.

The consultation will cover 9 main areas:

• Security and system performance
• Consumer invoices and buyer status
• KSeF identification number in payment references
• Meeting with the factoring industry
• Meeting with the utility supplier industry
• Meeting with the fuel industry
• Meeting with local government units
• KSeF phased implementation
• Explanations, tax rulings and training.

Based on these developments, the Polish Ministry of Finance has indicated that an April or July 2025 mandate commencement date looks more likely.

Tungsten Automation is closely following the mandate commencement date confirmation. In the meantime, we are focused on delivering a compliant e-invoicing solution in Poland. Confirmation that technical changes are expected to be minimal means Tungsten Automation can keep pace with our mandate implementation plans to ensure we are ready to meet the demands of the mandate when a revised start date is indicated.

Further details regarding the consultations can be found here: https://www.podatki.gov.pl/ksef/konsultacje/

This morning, the Polish Ministry of Finance announced a delay to the Polish e-invoicing mandate via a press briefing.

The Ministry of Finance has not yet set a revised date for the mandate inception. However, the mandate will no longer go live from 1 July 2024.

The Ministry of Finance will now conduct an external audit to assess the KSeF system and evaluate both current and potential concerns around it. The audit results are expected to shape the mandate commencement date. By extension, it is highly unlikely that the mandate will begin in 2024.

Tungsten Automation has been occupied preparing for the upcoming mandate in Poland and were on course to deliver a compliant solution by 1 July 2024. We are urgently reviewing how the delay will impact our plans to execute the mandate.

We will inform you of the revised inception date once confirmed.

The official press release can be located on the Polish Ministry of Finance via the following link:

https://www.gov.pl/web/finanse/przesuniecie-terminu-wdrozenia-obowiazkowego-ksef

Poland’s upcoming e-invoicing mandate should not be viewed as a fiscal measure in isolation. Poland’s wider fiscal structure also embodies a reporting platform referred to as SAF-T (JPK_V7), whereby taxpayers can report tax-related data to the government. The very nature of JPK_V7 means that it is very likely that the Polish e-invoicing mandate components will permeate the SAF-T format, as the two different fiscal processes collide. The Polish tax authorities will be acutely conscious of the need to keep the two processes aligned.

The KSeF number, which is applied to an invoice as part of its passage via KSeF, is an integral part of the e-invoicing process. It confirms KSeF receipt and acceptance of the invoice. An invoice pertaining to domestic transactions can only be considered a legal, registered invoice in Poland when it has been processed in KSeF and assigned with a unique invoice number.

From 1 July 2024, the JPK_V7 will accommodate the capability to incorporate both the KSeF and invoice number. At this point, it will be optional to include the KSeF number in the JPK_V7. However, this will become an obligation from 2025.

Kofax is currently undertaking preparations to ensure a successful Polish e-invoicing go-live from 1 July 2024. You can read more about this here.

Kofax is currently occupied accommodating the upcoming Polish e-invoicing mandate, where Kofax is supporting both invoice issuance and invoice retrieval services from the Polish e-invoicing platform, Krojowy System e-Factur (KSeF).

Kofax has tailored its proposed e-invoicing solution in Poland today based on current, draft technical specifications. Kofax is waiting for the Polish Ministry of Finance to release final technical specifications, which will confirm some outstanding questions in respect of our projected Polish solution. This will allow Kofax to implement a complete e-invoicing solution in Poland.

The Polish Ministry of Finance has now published two draft acts, which provide further detail on particular elements of their e-invoicing solution. Specifically, the draft acts provide information on:

• Quick Response (QR) codes and the ‘offline’ mode. QR codes will be required on every human-readable visualisation of the XML. The offline mode relates to instances where suppliers cannot issue invoices via KSeF due to an impediment on their end, and alternatively must do so outside KSeF in a structured form; current draft regulations indicate that suppliers are required to issue an invoice via KSeF no later than the next business day in these circumstances.
• VAT exempt taxpayers.  VAT exempt taxpayers will be obliged to adhere to e-invoicing obligations by 1 January 2025. The amendment to the e-invoicing regulation requires VAT-exempt taxpayers to include both supplier and buyer NIP numbers on their invoices.

Both draft acts are due to come into effect from 1 July 2024, and are open for public consultation until 18 December 2023. Kofax is not aware of any concrete information which suggests that the public consultation will delay the mandate inception date of 1 July 2024. Kofax will keep you informed in this regard.

Kofax is analysing this new information closely as QR codes will be required on every PDF that Tungsten Network will generate as part of its e-invoicing solution in Poland. Kofax is also currently assessing our obligations in respect of the offline mode. VAT exempt registered entities are not typically required to register for VAT or apply for a NIP number, but the provisions of the draft Act indicate that VAT exempt entities will need to apply for a NIP number. Kofax is following this closely.

Poland has published a new version of the Interface Specifications, which answers some outstanding questions around Poland’s upcoming e-invoicing mandate.

Specifically, the specifications provide information on the following:

• Quick Response (QR) codes
• KSeF authentication
• KSeF authorisation
• Encryption

Kofax is closely analysing the specifications, with a view to ensuring our e-invoicing solution in Poland is compliant.

Kofax has communicated with our Polish market on the upcoming mandate, with further messaging expected over the next few months to ensure our customer base is kept abreast of Kofax’s progress in respect of the mandate and any specific customer action required to facilitate the mandate.

You can read more about e-invoicing in Poland on our dedicated country-specific page here.

Kofax recently reported on a set of measures initiated by the Polish government, which became commonly referred to as the ‘anti-inflation’ package, and which curbed VAT on specific food products. These measures were instigated as a direct response to rising inflation in the country and were due to conclude at the end of 2023.

As part of a new Bill, Poland is now proposing to extend the specific measure which reduced VAT on specific food products to zero until 30 June 2024.

Poland is a compliant territory for Kofax, and our Polish e-invoicing solution supports all valid VAT rates in the country.

Kofax is also occupied facilitating Poland’s upcoming e-invoicing mandate. You can read further information on this here.

Kofax is currently occupied preparing to accommodate Poland’s upcoming e-invoicing mandate, where Kofax will connect to Poland’s e-invoicing platform, KSeF, on behalf of suppliers and buyers, to issue and download invoices on their behalf.

As much as e-invoicing mandates strive to meet common objectives associated with e-invoicing – such as a simplified VAT process for taxpayers, environmental benefits as well as increased tax collection- this digitisation forms a much broader set of aims within a wider fiscal framework. This means that Poland’s e-invoicing mandate will not just affect taxpayers who now need to issue impacted invoices via KSeF; it will also intrude into wider elements of their fiscal structure, with the broader aim of digitisating tax.

The Polish Ministry of Finance plans to modify the logical structure of SAF-T VAT (JPK_VAT), which is utilised as a medium by taxpayers to report tax information to authorities.

Because all these different elements need to be aligned to produce an efficient digitised process, it has been proposed to incorporate the KSeF number within the logical structure and introduce a marker for transactions which are included in the JPK_VAT but not submitted to KSeF.

Specifically, the proposed changes include:

• reducing VAT return deadlines to 40 days;
• introducing a unique ID number (numerKSeF);
• marking "OFF" for invoices issued during KSeF system failures, and
• marking "BFK" for invoices outside KSeF.

The draft legislation can be found here, with a public consultation set to run until 14 November 2023.

The draft (in Polish) is available via the following link:

https://legislacja.rcl.gov.pl/projekt/12378155

More generally, as Kofax prepares to accommodate Poland’s e-invoicing mandate, you can read more about the e-invoicing mandate on our dedicated page here.

It is important to note that while e-invoicing obligations in Poland come into effect in July 2024, the Polish national e-invoicing system, the Krajowy System e-Factur, has been a live, functioning environment as far back as January 2022. While Kofax is awaiting the Polish Ministry of Finance’s final technical specifications, we do not expect major revisions to the KSeF framework which is currently functional.

That having been said, there will be specific points that still need to be clarified by the Polish Ministry of Finance. This includes the position around QR codes, which are currently envisaged to be present on every PDF or visualisation of the XML file.

Another key consideration includes which transactions can be documented outside the KSeF environment. Presently, it is expected that tickets that function as invoices - such as plane, railway and ship tickets, amongst others- do not need to be issued via KSeF in a structured form, in accordance with the draft legislation.

The Polish Ministry of Finance has also opened a new public consultation to help ascertain which supplies should be excluded from the scope of the e-invoicing regime.

Kofax is awaiting final technical documentation to confirm the exact scope of transactions which can be issued outside KSeF, therefore precluding these transactions from any penalties if they are not issued in a structured form.

The Polish Ministry of Finance has published an information brochure on the structured invoice in the FA(2) version.

The published document is in Polish and covers:

• e-invoice basic information
• guidelines regarding the format of the FA(2) schema fields
• model method description for filling the fields of the FA(2) schema.

The brochure can be accessed via the following link:

https://www.podatki.gov.pl/media/9512/broszura-informacyjna-struktury-logicznej-fa-2.pdf