KSeF and invoices from and to foreign companies
KSeF and invoices from abroad
As a general rule, the National e-Invoicing System is not used for invoice reporting. Invoices received from foreign suppliers who are not obliged to use KSeF will not appear in the system.
This is because KSeF is designed for:
- entrepreneurs registered as active VAT taxpayers,
- entrepreneurs exempt from VAT,
- foreign taxable persons with a VAT-fixed establishment in Poland for VAT purposes.
Foreign taxable persons with a fixed place of business in Poland (VAT-fixed establishment) are obliged to issue invoices in KSeF. However, this obligation has been limited by the legislator to situations in which the fixed establishment of the foreign taxable person in Poland participates in the supply of goods or services. In situations in which the fixed establishment does not participate in the supply of goods or services, the foreign taxable person does not have to issue invoices in KSeF.
Importantly, a specific method of assigning KSeF authorisations is also provided for foreign taxable persons. In accordance with the regulation on the use of the KSeF, for entities (including domestic ones) which, for technical reasons, cannot give rights to KSeF electronically, it is possible to submit a notification of authorisation on paper.
This refers to a ZAW-FA notification by which an entity designates a specific individual to use KSeF, i.e. to issue invoices on behalf of the entity, to access invoices and to grant and revoke authorisations. A ZAW-FA can only apply to one natural person.
It should be emphasised that granting authorisations through ZAW-FA is a specific method. As a rule, taxpayers can grant authorisations only electronically via KSeF.
KSEF and invoices for foreign contractors
The situation is different when issuing invoices to foreign contractors. While it is not necessary to use KSeF for invoices from most foreign taxpayers, an invoice for a foreign entity will be issued via the National e-Invoicing System from 1 July 2024.
It is important to check whether the invoice recipient has access to KSeF. If such access is not available, the invoice issued by the National e-Invoicing System should be marked with a QR code and transmitted outside KSeF. This could be done, for example, by email (in a manner agreed in advance with the recipient).
In the original version of the Act introducing KSeF, the Ministry of Finance intended to publish on the White List of VAT taxpayers information on entities with a permanent place of business in Poland, i.e. those obliged to use KSeF. However, this solution was eventually abandoned.
The lack of public information on foreign taxpayers with access to KSeF creates additional obligations on the part of Polish entrepreneurs. As of 1 July 2024, before issuing an invoice to a foreign taxpayer, it must be confirmed whether the taxpayer is obliged to receive invoices via KSeF (whether the fixed establishment participates in the receipt of goods or services).
KSeF and invoices in foreign currency to a Polish contractor
Another important KSeF-related issue for entrepreneurs concerns the issuing of invoices in foreign currency, the recipient of which is a domestic entity. Should the amount be converted into zlotys in such a situation? In which field should the amount in foreign currency be shown?
Well, when an entity issues an invoice in KSeF in a foreign currency to a Polish contractor, the invoice amount should only be specified in the chosen foreign currency. The currency is specified by the taxpayer by filling in, among other things, the field CodeCurrency.
The conversion of invoice amounts into zlotys will still take place according to the current rules. The converted values should be included in the e-invoice in accordance with Article 106e(11) of the VAT Act:
Amounts of tax are shown in PLN. Amounts of tax expressed in foreign currency shall be shown in zlotys according to the rules for conversion into zlotys applied to determine the taxable base. Amounts shown on the invoice shall be rounded up to the nearest grosz, with amounts of less than 0.5 grosz being disregarded and amounts of more than 0.5 grosz being rounded up to the nearest 1 grosz.
KSeF - benefit from the help of our experts
How to use the National e-Invoicing System? How to prepare for the changes in the regulations? These questions invariably trouble entrepreneurs in the face of the arrival of mandatory KSeF.
We invite you to watch recordings of our webinars – KseF in Poland – how to prepare for the implementation? and KSeF implementation – key legal and tax issues – during which our experts answered the most frequently asked questions from companies on KSeF-related issues.
We have also prepared a wide range of accounting outsourcing services for you, under which we will assist you in the process of issuing and distributing invoices.
