Who is subject to the requirements of using KSEF

Who is subject to the requirements of using KSEF

The introduction of electronic invoices in Poland in the KSEF system raises a lot of questions and doubts for taxpayers. In this article we will try to deal with the question of who will be obliged to issue electronic invoices and whether they will be mandatory for all entities.

So, as announced by the Polish Ministry of Finance, standardised invoices in the KCEF system will eventually become mandatory for all invoicing firms subject to Polish tax law. The decision of the Council of the European Union allowing Poland to introduce structured invoices as a mandatory solution shows that Poland may introduce mandatory electronic invoices from 1 July 2024, rather than from 1 April 2023 as originally planned. The Ministry of Finance took this decision in response to feedback from the many companies that have already started using the scheme and decided that more time was needed at this stage to prepare for the new obligations.

Who is subject to the requirements to use the KSEF:

• Entrepreneurs registered as active VAT payers, all sole proprietorships and LLCs.
• Entrepreneurs exempted from VAT from 01.01.2025.
• Taxpayers identified in Poland for the EU special procedure OSS, having a Polish taxpayer identification number NIP.
• Foreign companies that are VAT payers in Poland.

Documentation of B2B transactions using electronic invoices will be mandatory for all legal entities based in Poland, as well as for foreign legal entities that have a fixed place of business for VAT purposes in Poland (permanent establishment, FE) – in respect of all invoices issued in accordance with the Polish VAT Regulations.

The introduction of the obligation to use electronic invoices issued to consumers (i.e. B2C) has so far been abandoned during the drafting of the KSEF Act. Taxpayers will have to issue them in the current form, which requires appropriate adaptation of processes in this respect to take into account different invoicing methods – different for domestic business recipients, different for consumers and separate for B2B transactions abroad (e.g. exports).

Export invoices need to be issued with a strictly defined XML schema and uploaded to QR Code, but do not need to be sent to the KSEF system.

Feedback is always important to us! So if you already have any questions on this topic, please send them to office@progressholding.pl, we will take them into account in the next reviews and try to provide as much information as possible in response to your requests.