Poland: Mandated E-Invoicing Postponed

Time to read: 3 minutes

In an unexpected development, the Polish Ministry of Finance has formally announced a deferral of the scheduled mandatory e-invoicing launch.

This domestic initiative, denoted as Krajowy System e-Faktur (KSeF), had previously encountered setbacks related to the insufficient preparedness of the IT systems, leading to the postponement of its original January 2024 launch. The delay is prompted by capacity concerns of KSeF to manage a considerable surge in invoice volumes. To hasten the planned implementation, an imminent external audit, contingent upon a competitive bidding process will occur. This procedural sequence is imperative for the confirmation of a revised launch date, potentially materializing in June 2025.

Andrzej Domański, the Minister of Finance has said the following on the matter, “We have diagnosed errors that prevent the introduction of the mandatory KSeF on the planned date. Therefore, I decided to conduct an external IT audit and postpone the implementation date of the mandatory KSeF. The system will not enter into force in 2024. The audit results will be the basis for setting a new date”

Complicating the matter further, is that Poland’s exemption from the EU VAT Directive is only valid until March 2026. It would be within reason that an extension of the exemption period would be applied for, however there is no certainty that it would be successful.

Concurrently, the Polish national accountancy entity, SKwP, has articulated reservations regarding the developmental progress of the Ministry of Finance’s mandatory e-invoicing platform. Advocating for a deferral of the proposed July 1, 2024 launch to January 2025. SKwP underscores the imperative for transparency, particularly concerning advancements in information technology.

E-invoicing is a certainty which will need preparation and research beforehand.

How can you prepare?

1. Involvement of Core Business Teams:

The forthcoming alterations, primarily impacting finance and billing systems, will also affect core business operations. To avert potential disruptions, both finance teams and those overseeing the core business functions should actively participate in the implementation process.

2. Clarification of Fixed Establishment Status:

Given that the new system applies only to foreign entities with a fixed establishment in Poland, companies must ascertain their fixed establishment status. Due to the complexity of fixed establishment rules, seeking legal advice may be prudent. Entities without a fixed establishment should collaborate with vendors on invoice visualization methods.

3. Continuous Access for Tax Authorities:

With direct and continuous access to invoices, tax authorities can verify invoice correctness without separate tax proceedings. Businesses should anticipate this increased scrutiny.

Get help:

To navigate the complexities of these changes and to ensure system readiness ahead of time, reach out to our Compliance and e-invoicing experts.