Even without KSeF, taxpayers will still be forced to use e-invoices

Szymon Lipiński, Tax Consultant

If the newly formed majority in the Polish parliament decides to postpone or abandon KSeF, taxpayers will still have to implement e-invoicing. The foundations for a pan-European e-invoicing system have been laid by the European Commission on 7 December 2022. According to last year's EC proposal, the obligation to issue structured invoices would be introduced throughout the Community in less than two years.

Senate against KSeF

On 14 July 2023, the Senate, with a majority of senators from the opposition at the time, rejected a package of bills related to a mandatory National e-Invoicing System from 1 July 2024. According to the senators, the KSeF bill was vague and created doubts about the constitutionality of the legislation. Criticism of the mandatory KSeF Act also flowed from experts. The KSeF in its current form may violate the basic principles of tax law in Poland and limit the protection of trade secrets against tax authorities.

The government has repeatedly postponed the deadline for mandatory e-invoicing to come into force. Now, after the elections, the implementation of the mandatory KSeF is facing a question mark. If the parliamentary majority of the 10th Sejm decides to abandon KSeF in its current form or postpone the entry into force of the project, taxpayers will be given additional time to prepare.

"European KSeF" as of 1 January 2026

However, the repeal of the mandatory KSeF in Poland will not allow e-invoicing obligations to be avoided at EU level. The European Commission announced the assumptions for a Europe-wide e-invoicing project already in 2022 as part of the so-called VAT in Digital Age (ViDA) package.

According to the EC's proposed changes to the VAT Directive, all invoices from 1 January 2026 on cross-border transactions should take a structured form. The obligation to issue invoices in the European e-invoicing system will therefore cover intra-Community transactions (VAT, VAT). Under the draft, taxpayers will be required to send invoices to the system within two working days of the date of the occurrence of the taxable event. This is one of the most significant changes proposed by the EC.

Reducing the time limit for issuing invoices for intra-Community transactions to two working days would mean major changes for VAT taxpayers. Currently, in most cases, Polish entrepreneurs can issue a VAT invoice until the 15th day of the month following the month in which the supply of goods, including intra-Community supplies, was made. Limiting the time for issuing an invoice to 2 working days may lead to many difficulties related to the flow and completion of documents necessary for the application of preferences in intra-EU trade (in Poland the 0% rate for intra-community acquisition of goods).

However, the Commission has not developed binding solutions to define the project in detail. Since the publication of the proposed amendments to the VAT Directive in December 2022, work on the ViDA has come to a halt. At the moment, the work of the Directorate-General for Taxation and Customs (DG TAXUD) is focused on refining the CBAM system. However, we can expect work on changes to the European VAT system to resume in the near future.

Learn more about CBAM: CBAM – the customs revolution in Europe

Abolition of call-off stock and single VAT registry

Apart from the mandatory e-invoicing, the VAT and Digital Age package introduces a number of changes to the basic rules of the European VAT system. According to the EC's proposal, the changes are to include:

Abolition of the VAT-EU summary statements,
Abolition of the call-off stock procedure,
Taxation of economic entities using digital platforms (e.g., Air BnB apps, Uber, Bolt, etc.),
Single registration for VAT purposes across the EU,
Changes to the text of invoices.

The proposed changes were to come into force in stages from 1 January 2024, the date on which the call-off stock procedure was to cease to apply. At present, meeting this deadline does not seem to be probable.

Link to ViDA project: VAT in the Digital Age (europa.eu)

E-invoicing - check how we can help

We offer support in preparing for the implementation of a mandatory KSeF in an organisation. We help, inter alia, with the integration of the KSeF by identifying processes requiring change, assessing and minimising possible risks and, above all, developing appropriate solutions.

How to benefit from the National e-Invoicing System? How to prepare for the changes in the regulations? We invite you to watch the recording of our webinar - watch the webinar recording: KseF in Poland – how to prepare for the implementation?

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