What are the requirements?

Poland has implemented e-invoicing requirements for all Polish fixed establishment VAT registered businesses. Businesses will be required to issue XML formatted electronic invoices for all transactions with other business entities. The invoices, once created, are sent to KSeF, Krajowy System e-Faktur, a platform developed by the Ministry of Finance in Poland to facilitate the exchange of electronic invoices between businesses and tax authorities, for approval. Once approved, the respective taxpaying buyer is to retrieve the invoice from KSeF.

KSeF enforces a standardised format for electronic invoices to ensure consistency and compatibility across the system, aiding in the efficient processing and verification of e-invoices.

When will they be effective?

• January 2021: Beginning of the voluntary application of KSeF
• July 2024: All businesses VAT registered in Poland must report their transactions via e-invoicing.
• January 2025: VAT-exempted taxpayers must also comply with the e-invoicing requirement.
• January 2025: Invoices issued through cash registers and simplified invoices are within the scope of KSeF.

Who will be impacted?

Polish fixed establishment (FE) businesses will soon need to adapt their systems for the upcoming e-invoicing mandate.

A taxpayer may have a fixed establishment if it has a permanent physical presence in Poland, such as an office, branch, or store where business or economic activities are conducted.

This obligation does not extend to taxpayers without a fixed establishment registered for VAT purposes in Poland when issuing invoices. Additionally, foreign taxpayers with a registered office in Poland are exempt, provided their FE in Poland does not supply goods or services for which the relevant issued invoice. In such cases, taxpayers have the option to document the transaction by issuing a structured e-invoice.

Moreover, structured e-invoices will not need to be generated, even on an optional basis, when the recipient of goods or services is a consumer (B2C flows) —defined as a natural person not engaged in any business activity.

Key terminology around Polish mandates

What is KSeF? - The Krajowy System e-Faktur (KSeF), Poland's national electronic invoice system, facilitates the issuance, reception, and storage of structured e-invoices. It also assigns a system-assigned identification number (KSeF-ID) to invoices and verifies their conformity to a predefined template.

What is a Corrective Invoice? - A corrective invoice is the only way to change an invoice accepted by KSeF. It is not a credit note but, similar to a credit note, is used to correct errors in a previously issued invoice. However, the information in a corrective invoice exceeds that of a credit note as it includes details of the original incorrect invoice and the corrections made. Additionally, there is a corrective invoice for each invoice type in KSeF.

What is a Simplified Invoice? - A simplified invoice, in terms of KSeF, is a fiscal receipt up to PLN 450 gross (EUR 100) containing the buyer's Tax Identification Number (NIP).

How Fonoa can help

Simplifying the connection process to KSeF, Fonoa manages the complexities associated with exchanging invoices on the KSeF platform. This allows you to effortlessly retrieve statuses and other information directly through the API or user interface.

Data validation and completeness

Experience the convenience of our API when dealing with missing data. We optimise the invoice data collection process, minimising the information you need to provide to Fonoa. Sequential numbering, document type codes, rounding, and other data-specific requirements are harmonised on our platform, enabling you to furnish standardised data across all your jurisdictions without adjusting to local nuances. Additionally, we conduct validation and corrections to reduce the number of KSeF rejects resulting from minor errors in the data.

Correctly identify business Tax IDs

In some cases, a PESEL (Personal Identification Number) can be treated as an NIP (Tax Identification Number) for tax registration and reporting purposes. Especially for small businesses or self-employed individuals. If an invoice receiver uses the PESEL as the NIP, it's a B2B transaction that would fall under the requirements to use KSef but is not easily identifiable. Fonoa can support you by checking whether a PESEL is a business or not and ensuring you stay compliant.

Automate different invoice type generation

In handling corrective invoices, Fonoa utilises globally standardised methods. Your business won't have to provide all the invoice data required for corrections; Fonoa automates the process, needing only the necessary adjustment information, as we will populate the remaining data based on the original invoice

Furthermore, for simplified invoices, prepaid invoices, and all other PL invoice types, Fonoa automates the creation of these invoice subtypes. The appropriate invoice for the situation is determined based on the data provided in our standardised global invoice transaction API.