The Finance Ministry is working on legislation that will make it possible to launch the National e-Invoicing System (KSeF) in Poland from January 1, 2024. The creators of the new solution ensure that both entrepreneurs and the state will benefit from the introduction of electronic invoicing.

Not everyone is aware that KSeF is already operational in Poland, and voluntary use of the system is possible as of January 1, 2022. In a little over a year (January 1, 2024), however, KSeF will become mandatory for all businesses, and a few months later invoicing outside of it will begin to be penalized by the tax administration. Invoicing outside the system will cost up to 100 percent of the amount of VAT, and if the tax is not included in the invoice at all - up to 18.7 percent of the amount due indicated in the document. 

‍

Specialists therefore recommend that with the launch of the system in the company do not wait for the last minute and prepare for its introduction well in advance. Especially since in many respects KSeF can make life easier for entrepreneurs and significantly improve accounting processes.

What benefits will KSeF bring to companies?

• The National e-Invoice System will automate the exchange of accounting documents between businesses and facilitate the payment process. 
• The e-Invoice will be generated in a standardized, one-size-fits-all format.
• Each invoice will have a unique KSeF number in the system.
• The e-Invoice will be considered issued on the day the issuer uploads it to the system. Assigning a KSeF number to the invoice and automatically making it available to the buyer will be equivalent to delivering the document to the contractor. 
• The content of invoices will always be able to be checked in the system. Access to KSeF will be provided in real time. 
• All invoices in KSeF will be in digital form only. There will be no need to print them, and the need for manual (fraught with the risk of human error) data entry into accounting systems will disappear.
• With KSeF, the risk of losing or destroying accounting documents will be eliminated. There will be no need to issue duplicate invoices.
• Entrepreneurs will not have to archive the invoices themselves. They will be stored in the system for a period of 10 years.
• With KSeF, the basic deadline for VAT refunds will be reduced from 60 to 40 days. This will improve the liquidity of small and medium-sized companies.
• Entrepreneurs will no longer be required to report JPK_FA and JPK_VAT RR files to the tax administration. 
• Systems analogous to KSeF will be gradually introduced in all EU countries. Unification of accounting regulations throughout the Community will make it easier for entrepreneurs to cooperate with foreign partners.
• The money and time saved by automating accounting processes will be able to be used for activities directly related to the business. 

What will the state gain from KSeF? 

The Polish tax is also expected to benefit from the launch of the National e-Invoicing System. The main goal of introducing KSeF is to tighten the VAT system and reduce irregularities, such as tax evasion and operating in the so-called "gray zone. According to the Ministry of Finance, the VAT gap amounted to about 10.8 percent of the assumed revenue in 2020, equivalent to PLN 22.7 billion. According to the CASE report, a year later the situation was already better, although the gap was still 4.3 percent, or about PLN 10 billion. 

In addition to improving tax compliance and increasing state budget revenues, KSeF will also help accelerate the digitization of the public sector. The unified IT system will facilitate the work of the tax administration and reduce the number of audit activities it conducts. Revenue officials will no longer have to deal with the aforementioned JPK_FA and JPK_VAT RR files, and other accounting documents will be available to them at any time for 10 years. This will eliminate the need for cumbersome and time-consuming inspections carried out by representatives of the fiscal at the premises of enterprises.