Poland FA_VAT Krajowy System
e-Faktur (KseF)
Poland is among the many European countries that have adopted e-invoicing. Poland’s Ministry of Economic Development, Labour, and Technology released a set of principles to implement e-invoicing in Poland.
The adoption of e-invoicing in Europe aims at solving a fundamental problem. Previously, there were so many e-invoice formats in the region, and it was difficult to exchange financial data across borders.
More so, issuing the existing paper/PDF invoicing format is costly, error-prone, and time-consuming.
Despite this uniformity of purpose, each country adopts the e-invoicing system slightly differently based on their choice of an exchange platform, timeline, method of e-invoicing exchange, e-invoicing format, and lots more.
So, if you want to comply with e-invoicing regulations in Poland, read till the end.
This article will cover the rules and requirements for e-invoicing, how private businesses and public entities can send e-invoices, and the best way to stay compliant with e-invoicing in Poland through Billit
Is e-invoicing mandatory for all?
Apart from the European Directive 2014/55/EU, Poland will introduce a new e-invoicing regulation that will significantly impact Polish taxpayers. Starting from January 2024, B2B e-invoicing will be mandatory for all taxpayers in Poland.
Poland’s e-invoicing mandate was initially facilitated through the Standard Audit File for Tax (SAF-T) in 2020. But SAF-T does not enable the tax authority to access e-invoices in real-time because taxpayers send their invoices monthly.
So, Poland has now adopted an automated invoicing system mandatory for all B2B and B2G transactions.
Notably, e-invoicing is voluntary within Poland's one-year compliance period (2022). Meaning that it can only be used if both supplier and seller agree. After this period, e-invoicing will become mandatory in Poland.
What are the e-invoicing requirements in Poland?
Poland’s e-invoicing requirement follows Peppol’s BIS 3.0 billing standard because it has not developed its own national Core Invoice Usage Specifications (CIUS). This format is also compliant with the European E-16931 e-invoicing standard.
Poland has also announced that all B2B and B2C e-invoices must be in the FA_VAT (a standard XML format) and issued and received through the national e-invoicing system Krajowy System e-Faktur (KSeF). The KSeF started operation on 1 January 2022.
Once the mandatory period is effective, the tax authority will be able to access tax records for auditing purposes. E-invoices will be archived automatically on KSeF for a period of 10 years. Taxpayers may also store copies of e-invoices as evidence of tax.
How to process and exchange e-invoices in Poland
Taxpayers need both an ERP system and an e-invoicing service provider that aggregates their financial records with KSeF to process and exchange e-invoices in Poland.
E-invoicing is voluntary for Poland’s B2B and B2C companies until 2024, so businesses must learn to stay compliant.
Here are a few steps to follow to remain compliant and exchange e-invoicing in Poland.
- Upgrade existing ERP: You can upgrade an in-house ERP system to meet the requirements of the e-invoicing mandate in Poland. Alternatively, you can use Billit that helps to connect the ERP system to the Polish e-invoicing systems with an API.
- Integrate the ERP with PEF/KSeF: If you’re a public entity or government, you should integrate your ERP with the PEF. PEF is equivalent to KSeF but strictly for B2G transactions. All public entities must register their account on PEF. B2B and B2C companies will integrate their ERP with KSeF.
- Prepare invoices in XML format: Taxpayers will prepare e-invoices in their ERP platform according to FA_VAT’s specified format, FA_VAT.
- Transfer e-invoice to the KSeF: After the ERP has formatted the e-invoice to the XML format, it is then transferred to the KSeF website for verification.
- Verification of e-invoice: The system checks format compliances when an e-invoice is sent to KSeF. A structured e-invoice will contain information related to the payment, payment procedure, and transaction terms. Therefore, an approved e-invoice is stamped and indexed with a unique number.
Exchange compliant e-invoices with Billit
Poland looks to digitize business operations, close the VAT gap, tackle tax fraud, and cut invoicing costs. The country has created two platforms to enable a seamless national and cross-border e-invoicing exchange, one for B2B and one for B2G transactions.
A single API connection should be sufficient if you need to connect your business or software to the KSeF and/or PeF system.
All taxpayers must issue and receive e-invoices from 2024, so preparing for this upcoming regulation is important. If you need help with e-invoicing compliance in Poland and/or more countries, feel free to reach out to support@billit.be. We are here to help you.
What is KSeF
The National System of e-Invoices (KSeF) enables the issuing and sharing of structured invoices. In the initial period, structured invoices will function in business transactions as one of the accepted forms of documenting transactions, in addition to paper invoices and electronic invoices currently in business transactions.
What format is e-Invoice
The structured invoice takes the xml format compliant with the logical structure of the e-Invoice FA (1) published in the Central Repository of Specimen Electronic Documents (CRWDE) on the ePUAP platform.
How do you issue an invoice at the KSeF
You can issue structured invoices:
- with the use of free tools provided by the Ministry of Finance,
- using commercial programs.
The stages of introducing the KSeF
- From October to December 2021, we conducted a pilot with the participation of taxpayers. In order to adapt the IT systems, it is possible to continue to use the provided test environment of the FSC. Details on testing can be found in the KSeF Test Zone tab .
- From January 1, 2022, we are introducing the National System of e-Invoices as a voluntary solution. From then on, you will be able to issue structured invoices under the National System of e-Invoices (KSeF).
- From January 1, 2024, the Council of the European Union agreed to make electronic invoicing in Poland mandatory. You can read the content of the derogation decision of June 17, 2022 in the database of legal acts of the European Union
From January 2022, you can use the KSeF voluntarily, while in 2024 the KSeF will become an obligatory solution
Do I have to join the KSeF
In the first stage of the KSeF implementation, it is you who will decide whether to issue a structured invoice in the FSC or to stick to the solution used so far.
Who uses the KSeF
- Entrepreneurs registered as active VAT payers,
- Entrepreneurs exempt from VAT
- Taxpayers identified in Poland for the special EU OSS procedure, having a Polish tax identification number NIP.
How to issue an e-invoice at the KSeF?
A structured invoice may be issued by the taxpayer using the free KSeF tools - currently a test version of the KSeF Taxpayer Application is available, which you can access by clicking on this link .
After clicking, enter your company's tax identification number and then log in using a Trusted Profile or a qualified certificate.
The next step will be to sign the document with an electronic signature - in this way, authorization will be made and the KSeF system will be available to the taxpayer from now on.
KSeF and PEF
System of structured invoices within the meaning of the Act of 9 November 2018 on electronic invoicing in public procurement, concessions for construction works or services and public-private partnership (Journal of Laws of 2020, item 1666) and the system of structured invoices issued in within the framework of the KSEF in its optional version will be systems functioning separately.
Legal basis
- Act of October 29, 2021 amending the act on tax on goods and services and certain other acts (Journal of Laws of 2021, item 2076)
- Council Implementing Decision (EU) 2022/1003 of 17 June 2022 authorizing the Republic of Poland to apply a special measure derogating from Art. 218 and 232 of Directive 2006/112 / EC on the common system of value added tax (Journal of Laws UE L 168, 27.6.2022, pp. 81-83)
How to process and exchange e-invoices in Poland
Taxpayers need an ERP system that aggregates their financial records with the KSeF portal through the Peppol certified API to process and exchange e-invoices in Poland.
E-invoicing is voluntary for Poland’s B2B and B2C companies until 2023, so businesses must learn to stay compliant.
Here are a few steps to follow to remain compliant and exchange e-invoicing in Poland.
- Set up an Enterprise Resource Planning (ERP): The ERP is a financial and accounting platform that automates business processes and provides insights. As an access point provider, the ERP digitizes your transaction activities following standard technical specifications so that you can easily comply with the e-invoicing mandate. ERPs in Poland must operate on e-invoicing access points recognized by Peppol only.
- Upgrade existing ERP: If you’re working on an in-house ERP beforehand, you can upgrade the platform to meet the requirements of the e-invoicing mandate in Poland.
- Integrate the ERP with PEF/KSeF: If you’re a public entity or government, you should integrate your ERP with the PEF. PEF is equivalent to KSeF but strictly for B2G companies. All public entities must register their account on PEF. B2B and B2C companies will integrate their ERP with KSeF, the market solution that works with Peppol.
- Prepare invoices in XML format: Taxpayers will prepare e-invoices in their ERP platform according to FA_VAT’s specified format, FA_VAT.
- Transfer e-invoice to the KSeF: After the ERP has formatted the e-invoice to the XML format, it is then transferred to the KSeF website for verification.
- Verification of e-invoice: The system checks format compliances when an e-invoice is sent to KSeF. A structured e-invoice will contain information related to the payment, payment procedure, and transaction terms. Therefore, an approved e-invoice is stamped and indexed with a unique number.
How to search for invoices
https://ksef-test.mf.gov.pl/web/anonymous-access
Check Status of Invoice
https://ksef-test.mf.gov.pl/web/anonymous-upo-status
Exchange compliant e-invoices via Peppol with Billit
With Peppol’s e-invoicing system, Poland looks to digitize business operations, close the VAT gap, tackle tax fraud, and cut invoicing costs in the country.
The country has adopted Peppol as its primary access point provider to enable a seamless national and cross-border e-invoicing exchange. And Peppol follows the European e-invoicing standard.
As such, all taxpaying businesses must issue and receive e-invoices from 2023. At that time, an API provider must enable taxpayers’ financial and accounting systems that comply with the Peppol standards.
While you stay compliant ahead of the 2023 mandate, our e-invoicing system also offers you a broadband benefit. As a result, you will cut out the manual invoicing process, save time and money.
More information on Peppol in Poland?
Call us on: +32 3 283 09 09 or send an e-mail to: peppol@billit.be
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