This article explains:
• What KSeF is and when it comes into force
• What the VIDA package is
• What the benefits of implementing KSeF in Poland are
KSeF
Although this KSeF will become mandatory from 2026 for most Polish VAT taxpayers, foreign entities registered for VAT in Poland that do not have a seat or fixed establishment in the territory of the Republic of Poland are excluded from this obligation.
The VIDA package
In this context, it is impossible to ignore the work of the European Commission in the area of digitalisation, namely the VIDA package (VAT in the Digital Age), which will introduce:
- Mandatory e-invoicing for intra-EU transactions
- Real-time (near real-time) transaction reporting
- Harmonisation of electronic invoice formats across the EU
- Replacement of the VIES system with a new VAT data exchange system
The VIDA package is to be implemented gradually starting in 2028, but it is already influencing national preparations, including in Poland.
It is difficult at this point to predict how this obligation will be implemented across the European Union by individual Member States, but assuming the work already undertaken by some countries, it should be expected that national systems will be adapted to the obligations arising from the VIDA package.
Global trends in e-invoicing indicate that e-invoicing will, within several or perhaps a dozen years, become a worldwide standard, and over time there will no longer be exceptions in this regard. Therefore, despite the (in my view temporary) lack of obligation, it is worth considering voluntary use of KSeF, as it offers a range of benefits.
KSeF benefits
Faster VAT Refunds
One of the most important benefits of KSeF is the possibility of using the accelerated VAT refund mechanism – even within 40 days instead of the standard 60, provided that certain statutory conditions are met. For foreign entities that regularly apply for VAT refunds in Poland, this may translate into a significant improvement in financial liquidity.
Streamlined document workflow
KSeF enables automation of invoicing processes, which results in:
- elimination of errors associated with manual data entry
- elimination of errors and the need to verify data produced by OCR systems
- no need to prepare duplicate invoices
- no obligation to archive documents independently
- facilitation in the settlement of corrective invoices
- easier invoice management within ERP systems
For foreign companies cooperating with Polish counterparties, this may mean better integration with local accounting processes through the standardisation of invoice data and invoicing-related workflows.
Improved VAT reporting
Thanks to the structured format of invoices and their automatic transmission to KSeF:
- data for the JPK_VAT file can be generated automatically
- the risk of errors in declarations is reduced
- it is easier to identify transactions and assign them to the correct settlement periods
- integration with ERP systems and automatic posting is possible
This results in significant time savings and reduced risk of errors. It requires appropriate preparation of the data scope in e-invoices, but as noted above, this effort can bring substantial savings, because with proper management of the process, both VAT records and the VAT return can be generated automatically.
Risk management and due diligence
Using KSeF requires granting appropriate authorisations for issuing and receiving invoices. When this obligation is carried out in a thoughtful manner, it significantly reduces risks related to erroneous or unauthorised interference in the process by individuals lacking the proper permissions. In this context, the taxpayer’s responsibilities include:
- implementing access control procedures – determining who may issue invoices on behalf of the entity and under what conditions
- documenting the process of granting and receiving authorisations
- managing access centrally and auditing it through the e-Tax Office, which enables authorisations to be assigned within KSeF
For foreign entities that often delegate responsibilities to local representatives or accounting firms, clear rules for granting KSeF authorisations are essential for tax security. The actions described above constitute evidence of due diligence, reducing the risk of abuse, errors, or the issuance of invoices by unauthorised persons. This is particularly important in light of the recent position of the Court of Justice of the European Union expressed in its judgment of 30 January 2024 in Case C-442/22, according to which, where an employee issued a fraudulent invoice showing VAT using the identity of the employer as the taxpayer without their knowledge and consent, that employee should be regarded as the person declaring VAT, unless the taxpayer failed to exercise the due diligence reasonably required to monitor the employee’s actions.
Credibility and transparency
Using KSeF increases a taxpayer’s credibility in the eyes of Polish business partners and tax authorities. Invoices issued within the system are automatically transmitted to the tax administration, which facilitates audits and reduces the risk of tax disputes. Early detection of errors by tax authorities may not only prevent costly interest and penalties, but—as was often the case with the introduction of JPK reporting—may simply result in an indication of an error or doubt, enabling the taxpayer to correct it.
Better communication with Business Partners
Although foreign counterparties do not have access to KSeF, invoices issued in the system may be transmitted outside it—for example, in PDF format with a QR code. This enables easy verification of the document and may be perceived as a professional approach to invoicing.
Our Perspective
Although foreign VAT taxpayers registered in Poland who do not have a seat or fixed establishment are not obliged to use KSeF, voluntary adoption of the system may provide them with tangible benefits. From faster VAT refunds, to streamlined accounting processes, to enhanced transparency, KSeF can become a tool that supports effective business operations on the Polish market, while also preparing taxpayers for the implementation phase of the VIDA package by highlighting areas that will require analysis.
