E-invoicing in Poland (KSeF)

Poland's Ministry of Finance confirms the new e-invoicing requirement: starting July 1, 2024, all taxpayers must adapt to mandatory e-invoices and utilize the National E-Invoicing System (KSeF - Krajowy System e-Faktur).

Ajith Kumar M
November 24, 2023
6 min

Sign up for E-Invoicing Newsletter

The latest industry news, technologies and resources.
We care about your data in our privacy policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Poland is joining other European countries like Spain, Portugal, and Italy in adopting electronic invoicing, commonly known as e-invoicing. This move is part of a bigger push across the European Union, encouraged by a 2014 EU Directive, to make digital billing more common, especially in public services. E-invoicing is all about using digital systems to send and receive bills, making it quicker for businesses and the government to handle payments and taxes.

Here's what's happening in Poland: The government has set up two key platforms for this digital shift. The first, launched in April 2019, is called "PEF" (Platforma Elektronikznego Fakturowania). It's used for business-to-government (B2G) billing. The second, introduced in October 2021, is "KSeF" (Krajowy System e-Faktur). This one's for business-to-business (B2B) and business-to-consumer (B2C) billing.

The switch to mandatory e-invoicing for B2G transactions has been in place since 2019. The next phase is to make e-invoicing obligatory for B2B transactions. This move, initially set for January 2024, has been postponed to July 2024. Adopting e-invoicing is significant as it allows for faster VAT processing and helps in combating tax fraud more effectively. Poland is following Italy's lead, which has already fully transitioned to mandatory e-invoices for all transactions since 2019.

PEF (Platforma Elektronikznego Fakturowania)

PEF, the National e-Invoicing Platform, is a centralized system designed for the efficient exchange of structured e-invoices and various documents among buyers and public procurement authorities.

This platform has been operational since April 1, 2019, ensuring a speedy and hassle-free processing of invoices and related documents within the realm of public procurement. This includes tasks like handling dispatch notes, waybills, and booking receipts.

One notable feature is that PEF allows the creation of any electronic document. Furthermore, the platform meticulously validates documents for completeness and accuracy before sending or receiving them.

An additional advantage is that setting up an account and utilizing this platform comes at no cost to users, making it a cost-effective solution for businesses and public entities alike.

  • Using PEF is free, and it's under the direction of the Ministry of Development.
  • Two IT companies, Firma Infinite IT Solutions and Konsorcjum PEF expert, offer PEF services, and they both offer similar functionalities.
  • Both operators are certified PEPPOL service providers, allowing PEF users to connect with PEPPOL users worldwide.
  • Public procurement authorities have been required to receive e-invoices through PEF since April 2019 for orders over EUR 30,000, and suppliers must issue e-invoices to government agencies for all orders since November 2020.

KSeF (Krajowy System e-Faktur)

  • KSeF is a system in Poland that allows businesses to create and share structured invoices electronically.
  • These structured invoices are a type of digital document used to record business transactions, similar to traditional paper invoices or electronic invoices.
  • The format of these structured invoices is XML, which is a standardized digital format.
  • You can create structured invoices in KSeF using either free tools provided by the Ministry of Finance or commercial programs.

The introduction of KSeF was done in stages:

  • From October to December 2021, there was a pilot program.
  • Starting from January 1, 2022, businesses could use KSeF voluntarily.
  • The Council of the European Union decided to make electronic invoicing mandatory in Poland, starting from July 1, 2024.

Do You Have to Join KSeF?

In the initial stage of KSeF implementation, businesses have the choice to use structured invoices in KSeF or continue using their previous invoicing methods.

Who Uses KSeF?

KSeF is used by:

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

Differences Between PEF and KSeF:

  • Platforma Elektronikznego Fakturowania (PEF) and Krajowy System e-Faktur (KSeF) are distinct electronic invoicing systems in Poland.
  • PEF is primarily designed for the structured document exchange between public procurement entities and their contractors, covering various document types.
  • In contrast, KSeF serves as a nationwide system specifically for the issuance, transmission, and storage of structured invoices in XML format.
  • While the use of PEF is voluntary, KSeF will become mandatory for all entrepreneurs starting from July 1, 2024, with exceptions.
  • PEF is offered by select service providers, while KSeF is governed by the Polish government. Notably, these two systems are separate, with no data sharing, but there's potential for future integration to enhance user convenience and efficiency in handling structured documents and invoices.

How is Invoicing Information Transferred?

  • PEF provides information on how to use it on the Efaktura.gov.pl website, including guidelines for creating XML documents according to Peppol BIS 3.0 and CEFACT standards. These documents cover various types of invoices and related documents.

These systems, KSeF and PEF, are part of Poland's effort to modernize E-invoicing processes and make them more efficient and digital-friendly. Businesses in Poland have the option to transition to these systems voluntarily before they become mandatory.

In summary, as Poland advances towards e-invoicing, it's crucial for businesses to stay informed and adapt to these changes. For comprehensive assistance and insights on e-invoicing in Poland, don't hesitate to reach out to Complyance:

📞 WhatsApp or call us at +91 8778237303

📧 Email: sales@complyance.io

📺 Subscribe to our YouTube channel for informative content and updates: YouTube Channel: youtube.com/@complyance

Embrace e-invoicing in Poland to stay competitive in the digital age and enjoy the advantages of efficient and secure invoice processing.