On 16 June 2023 the Polish Sejm (the Parliament) passed an amendment to the VAT Act to make the issuing of invoices via the National e-Invoicing System mandatory. Until now, the use of the solution has been optional. The switch to KSeF is intended to facilitate the fight against VAT fraud and is expected to result in an additional 10 billion for the budget over the next 10 years.

The National e-Invoice System (KSeF) allows structured invoices to be issued and shared. The exchange of invoices is no longer to take place directly between counterparties, but through a centralised KSeF system, ensuring that all invoices issued are verified, stored and delivered to recipients, as well as being viewed by the tax authorities on an ongoing basis. The KSeF system verifies the correctness of the invoices sent to it and decides on their release for circulation.

The mandatory use of the system only covers invoices supporting business-to-business transactions. It does not therefore apply when the buyer is a consumer.

The KSeF will therefore be used by:

• Entrepreneurs registered as active VAT taxpayers,
• Entrepreneurs exempt from VAT
• Taxpayers identified in Poland for the special EU OSS procedure, with a Polish tax identification number NIP.

The implementation of KSeF into a business may require taxpayers to prepare carefully in terms of technical, substantive and procedural aspects.

If you require support in this regard, please do not hesitate to contact us.