Poland mandates e-Invoicing for businesses

A guide to navigating the new digital tax compliance landscape

2 minutes

Poland is on the brink of a significant change in its tax reporting landscape, with the upcoming implementation of mandatory e-invoicing for Business-to-Business (B2B) transactions. This move is a part of the country’s broader strategy to modernize its fiscal systems and streamline tax compliance processes.

Introducing the central database of invoices

The Ministry of Finance in Poland has announced plans to require all taxpayers to issue and process e-invoices through the Central Database of Invoices (KSeF). This system is designed to validate e-invoices, ensuring they are automatically accessible to recipients. To support this transition, the Ministry is rolling out several user-friendly tools, including the ‘e-Mikrofirma’ app and a web form accessible via e-Urząd (e-Office), facilitating ease of compliance for businesses.

Expanding digital invoicing to the government sector

The push towards digital invoicing also extends to Business-to-Government (B2G) transactions, tying in with the existing B2B e-invoicing framework. This integration aims to cover suppliers working with Polish government entities, requiring them to adopt the KSeF system. Although the rollout for B2G e-invoicing aligns with the B2B mandate, specifics regarding the integration process are still under discussion. A significant development is the planned incorporation of the PEF system, previously used for voluntary B2G e-invoicing, into KSeF, indicating a unified approach towards e-invoicing in Poland.

Bolstering e-Audit with SAF-T requirements

Additionally, Poland is strengthening its on-request e-audit capabilities by enforcing the Standard Audit File for Tax (SAF-T) requirement. This measure compels taxpayers to submit detailed monthly VAT SAF-T files and produce other necessary documents upon the tax authorities request, covering a broad spectrum of financial and tax-related data.

Preparation is key for businesses

Businesses operating in Poland need to prepare for these changes by ensuring their systems are compatible with KSeF for issuing and receiving e-invoices. Moreover, familiarizing themselves with ‘e-Mikrofirma’ and preparing for SAF-T submissions will be crucial for a smooth transition. Entities engaging in B2G transactions must also stay updated on the integration details and prepare accordingly.

Moving towards efficient fiscal governance

As Poland moves forward with its e-invoicing mandate, the goal is clear: to enhance tax compliance, reduce administrative burdens, and promote a more efficient, digital-first approach to fiscal governance. Businesses are encouraged to monitor updates from the Ministry of Finance and take proactive steps to align with the new e-invoicing and reporting requirements, ensuring they are well-prepared for the digital transformation of Poland’s tax system.

Key takeaways for businesses

  • Update your invoicing systems to be compatible with KSeF for issuing and receiving e-invoices.
  • Familiarize yourself with the ‘e-Mikrofirma’ app and the e-Urząd (e-Office) web form for streamlined e-Invoice management.
  • Prepare for the integration of B2G transactions into the KSeF system, especially if you’re a supplier to government entities.
  • Ensure readiness for SAF-T compliance, including the capability to generate and submit required documents on demand.

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