An In-Depth Analysis of the Consultations
On July 18, 2024, critical tax consultations regarding the National e-Invoicing System (KSeF) took place. Participants, including representatives from the Ministry of Finance, delved into the potential changes and future directions for this significant project. This meeting provided a vital platform for discussing the progress and addressing concerns related to the KSeF implementation.
Background and Current Status
Initially, the Ministry of Finance planned for the mandatory KSeF to be implemented on July 1, 2024, for active VAT taxpayers, with small and medium-sized enterprises (SMEs) exempt from VAT required to comply starting January 1, 2025. However, due to the identification of critical application errors, the enforcement of mandatory KSeF was postponed.
Presently, the Ministry proposes a phased introduction of mandatory e-invoicing:
- February 1, 2026: For entrepreneurs with sales exceeding PLN 200 million in 2025.
- April 1, 2026: For all other entrepreneurs.
Proposed Changes from the Ministry of Finance
The Ministry introduced several significant proposals during the consultations:
Offline Invoicing
The option to issue electronic invoices “offline” outside the KSeF with a QR code and enter them into the system the following business day will be maintained. This provides flexibility for businesses that may face connectivity issues.
B2C Invoices
The Ministry retained the optionality of issuing consumer invoices. Additionally, the earlier proposed solution for buyer’s “self-identification” concerning income tax has been withdrawn based on pre-consultations feedback.
Paper Invoices
Taxpayers who find KSeF implementation challenging can continue issuing paper invoices, provided the invoices do not exceed PLN 450 per invoice and the total value per month does not surpass PLN 10,000. This proposal aims to accommodate smaller businesses or those with limited digital capabilities.
Structure of E-Invoices
Modifications to the e-invoice schema, including payment date and local government unit identification, were announced. A new schema template, FA(3), will be presented in September for public consultation.
Invoice Attachments
The Ministry plans to introduce a structure for annexes to e-invoices in September. These annexes will allow the inclusion of tax data resulting from separate regulations, such as industry-specific rules. One invoice can contain a single attachment, with the option for corrections.
Significance for VAT and Business Community
The consultations saw participation from over 3,000 stakeholders, underscoring the significant interest in the KSeF project. As the deadlines for mandatory KSeF implementation approach, the business community is keenly observing the Ministry’s proposals.
The Deputy Minister of Finance emphasized the stability of the principles presented so far and assured that investments made by enterprises in preparation for KSeF would not be wasted. However, a clear directive on whether businesses should continue their KSeF preparations or wait for the draft law expected in autumn 2024 was not provided.
Moving Forward with KSeF Implementation
Despite areas needing further clarification, the general direction for KSeF implementation is clear, and it remains a complex process. Businesses should prepare for extensive activities involving process mapping, data migration, and internal system adjustments. Continuing the work as per the internal schedules, regardless of the final KSeF requirements, may enhance the e-invoicing implementation process.
The consultations with the Ministry of Finance have provided crucial insights into the future of KSeF. While challenges and uncertainties remain, the proposed changes and the phased approach aim to facilitate a smoother transition to mandatory e-invoicing. Businesses must stay informed and proactive to navigate this evolving landscape effectively.
