Poland will introduce an e-invoicing solution for B2B transactions in October 2021. The new digitalized system is known as KSeF (Krajowy System e-Faktur, or National e-Invoicing System) and its use will be voluntary for businesses for the time being. The Polish ministry of Finance is planning to make e-invoicing mandatory in 2023, which gives businesses enough time to transition to it. Before that, the Polish tax authorities will consider both paper invoices and other electronic invoices as valid invoicing documents and companies can continue using them.
The goals and characteristics of the new e-invoicing system
The primary objective of the new system for electronic invoicing is to help combat VAT fraud and improve the country’s capacity to collect taxes on sales transactions. It will allow the Polish tax office to monitor economic activity closely, and will also permit live invoice reporting. The changes that Poland is introducing are similar to e-invoicing systems that Hungary, Portugal, Italy and Spain have already put in place. In fact, the proposed changes are inspired by the Italian SDI system, and have been developed in cooperation with other EU countries.
The KSeF system will also help facilitate VAT refunds and shorten the refund period from 60 to 40 days.
Below, you can find some characteristics of the e-invoicing system, which is a part of a Continuous Transaction Control (CTC) system:
- The receiver’s acceptance will be necessary for businesses to issue invoices through the KSeF portal. This, in turn, helps guarantee that the invoice has been received.
- Both issuing and receiving invoices need to happen via the platform, however, outsourcing will be permitted, subject to additional rules, so that accountants and other professionals can access the portal on the behalf of businesses.
- All invoices will be archived and stored electronically for a 10-years period. Access to past invoices will be easy.
- To use the platform, businesses will need to have an electronic signature.
Additional layer of security
This system will facilitate invoicing, as changes will be quick and easy to make, and businesses will not have to store invoices themselves. Using the platform will also provide an additional layer of security. All invoices will be standardized and unified, which will make B2B sales transactions simpler and more transparent. Businesses will indeed benefit from these changes, but they also need to adapt to them, which is why the transition period will be more than a year.
The Polish Ministry of Finance will introduce the new system on October 1, 2021, but, as previously mentioned, companies will not be required to use it immediately. To ensure business continuity, they need to make sure they’re familiar with the system early on, and can comply with the new rules. Therefore, we advise all businesses who are trading in Poland to make sure they know the new e-invoicing system’s rules and can comply with them.
Fonoa Automated Real-time Invoice Reporting Solution
We are aware that new regulations have a substantial impact on how businesses operate. That’s why we built Fonoa Reporting, a solution that automatically reports sales transactions to tax authorities around the world.
If your business is affected by real-time invoice reporting obligations anywhere in the world, reach out to us, and we will help you automate the invoice reporting process.