e-Invoicing Overhaul in Poland: Draft Act Introduces Phased Implementation and Extended Deadlines
Poland’s Ministry of Finance (MF) has announced significant amendments to its e-Invoicing legislation, aimed at refining the National e-Invoicing System (KSeF). Following extensive consultations with businesses, these adjustments address both timing and operational challenges raised by the business community. The new Draft Act introduces a phased approach to mandatory e-Invoicing implementation, starting in 2026, alongside other essential changes to simplify adoption and compliance. This update is part of Poland’s commitment under the National Recovery and Resilience Plan (NRP) to digitize and modernize tax administration.
Key Changes to Poland’s National e-Invoicing System (KSeF)
1. Extended Timeline for Mandatory KSeF Implementation
- Phased Rollout Beginning February 2026: The obligation to issue invoices through KSeF will commence on February 1, 2026, for businesses with annual sales exceeding PLN 200 million (in 2025).
- April 2026 for Smaller Businesses: All remaining enterprises will be required to adopt KSeF by April 1, 2026, allowing smaller businesses more time to adapt to the new system.
- Extended Deadlines for Certain Requirements: Specific elements of the e-Invoicing transition, such as the need to display KSeF numbers in split payment transactions and requirements for cash register-issued invoices, will be deferred until July 31, 2026.
These adjustments reflect the MF’s responsiveness to concerns from Polish businesses, offering a more gradual transition period to accommodate different business scales and operational structures.
2. Grace Period and Digital Inclusion
- Grace Period Until Late 2026: To ease the transition, the new amendment allows all taxpayers to use an offline mode for issuing e-Invoices until the end of 2026. This is particularly beneficial for businesses with inconsistent access to digital resources.
- Support for Digitally Excluded Entities: During a transitional period ending on September 30, 2026, “digitally excluded” businesses (such as small enterprises or those in areas with limited digital infrastructure) will be permitted to issue invoices in their current format. This provision aims to ensure that the digital shift does not disadvantage small or digitally challenged businesses.
3. Enhanced Flexibility for Consumer Invoices
- Inclusion of Consumer Invoices in KSeF: One significant update includes the incorporation of consumer invoices into the KSeF. This addition enables businesses to manage a wider range of invoice types within a single system, streamlining operations and simplifying record-keeping.
4. Preparation for Full KSeF Functionality
- Technical Enhancements Before Full Implementation: The draft emphasizes the importance of establishing complete KSeF technical functionalities ahead of the mandatory e-Invoicing deadline. This approach ensures that businesses will have access to a fully operational system before compliance becomes mandatory, allowing a smoother transition and more robust support from the National Revenue Administration (KAS).
Broader Goals and Compliance Benefits
These amendments align with Poland’s goals under the National Recovery and Resilience Plan (NRP), reflecting a strategic move toward digital tax administration and enhanced compliance. The phased approach and extended deadlines indicate a balanced framework that supports both large enterprises and smaller businesses in complying with new digital requirements. By facilitating easier access, enhancing offline capabilities, and incorporating user feedback, the MF is positioning KSeF to become a more practical, efficient, and inclusive tool for Poland’s business community.
Looking Ahead: Project Timeline and Further Steps
The Ministry of Finance aims to submit the draft to the Council of Ministers for adoption in the fourth quarter of 2024. By prioritizing phased implementation and system flexibility, the MF continues to emphasize collaboration with Polish enterprises, ensuring that KSeF’s mandatory adoption will be as seamless as possible for all stakeholders.
