KIELTYKA GLADKOWSKI KG LEGAL participated in the training devoted to “Polish National Electronic Invoicing System” – obligatory system for entrepreneurs in Poland from 2023, voluntary in 2022

The workshop devoted to the new Polish system of electronic invoicing took place on 27 January 2022, it was organized by the Business Trends Academy, a joint project of Soneta LLC, software developer ENOVA 365, Microsoft and Intel.

About the Polish National e-Invoice System (KSeF)

The Polish National e-Invoice System (KSeF) is operated by the Polish Head of the National Fiscal Administration, who is the administrator of all data in the National e-Invoice System.

Functionality of the Polish National e-Invoice System:

• granting, modifying and withdrawing permissions and notification of possession or withdrawal of permissions
• verification of permissions at login attempt
• issuing, accessing, receiving, storing and assigning identification numbers to structured invoices
• verification of the compliance of the sent invoice with the template (scheme).
• notification of temporary non-functioning of the system and of attempted login by an unauthorised person.

Who can use the Polish National e-Invoice System:

• Taxpayer
• Entities designated by the taxpayer (e.g. an accounting office)
• Enforcement bodies, bailiffs
• Natural persons designated by the above-mentioned entities.

Important note: The Polish National e-Invoice System does not exclude foreign contractors, so they can also receive structured invoices, although they may wish to receive it in the traditional way.

Structured e-invoice – definition and issuing

Definition of structured invoice: An invoice issued using Polish National e-Invoice System with an assigned number identifying that invoice in the system. A structured invoice shall be deemed to have been issued on the date on which it is sent to the National e-Invoice System.

If the invoice is entered into the National e-Invoice System and given an identification number, the due date of the invoice begins to run, so it is not possible not to receive the invoice. You can send an invoice with an earlier or later date of issue. The date on the invoice counts for the due date, not the date the invoice is received in the Polish National e-Invoice System. The date of issue section is not the same date as the date of sending the invoice. In case of Internet connection failure, it is possible to send the invoice later.

The invoice can be downloaded without logging into the Polish National e-Invoice System provided the National e-Invoice System identification number, invoice number, recipient’s VAT number, purchaser’s name and total amount due are included.

If the recipient does not agree to receive the invoice in the National e-Invoice System, it can be sent in another way agreed with them, but it will still be a structured invoice.

Invoices are issued in your existing accounting system, which should be linked to the National e-Invoice System. After sending, the National e-Invoice System will analyze the invoice for compliance with the template, and if it does not find such compliance, it will not stamp the invoice with an identifying number and it will be rejected. The issuer will be informed of the negative outcome of the dispatch to the National e-Invoice System.

Invoices issued in the National e-Invoice System will be kept for 10 years. The Polish tax authority will have all the documents, so there is no obligation to provide them. If the tax obligation was not time barred, the taxpayer must keep the invoice for a longer period outside the system.

Additional data in the context of the VAT Uniform Control File (Polish: Jednolity Plik Kontrolny VAT): The e-Invoice has more fields than the VAT Uniform Control File, so the additional fields must be treated as optional fields. Failure to fill in these fields should not be an obstacle from a technical point of view, but on a substantive level this information may be required. The tax consequences of failure to fill in optional fields in the e-Invoice are not yet known. All that is known is that the National e-Invoice System will not reject such an invoice.

Attachments to a structured invoice: The current scheme does not provide the option to attach attachments to a structured invoice. Until now, it has been possible to attach an attachment to an invoice. This additional information will have to be provided outside the system, e.g. by email. You can upload an attachment in a dedicated repository created by the invoice issuer and include an individual link connecting the invoice to the specification. You are not allowed to add attachments in the National e-Invoice System, but you can provide a link to the repository in the invoice.

Advantages and disadvantages of earlier participation in the Polish National e-Invoicing System

Advantages of the National e-Invoice System:

• Shorter VAT refund period (40 days) for the Polish National e-Invoice System-only users. It is also easier to claim back output tax, as the seller does not have to present documentation to the authorities.
• Exemption from the obligation to submit VAT Uniform Control File (Polish: Jednolity Plik Kontrolny VAT) on request (JPK e-FA).
• Reduction of input tax on the side of the buyer of goods or services in the event of receiving a correction invoice in the form of a structured invoice.

Advantages of earlier joining to the National e-Invoice System:

• Free document archive
• Reduction of output tax as a result of a correction without the need for documentation
• Shorter VAT refund period
• Accelerated invoicing and delivery to purchasers and improved collection of dependencies
• Accelerated circulation of documents.

Risks of earlier joining to the Polish National e-Invoice System:

• Accelerated circulation of documents on the side of the purchaser may result in increased demand for funds in the case of a payment deadline dependent on the date of receipt;
• Implementation of the system may have a large impact on the organisation on both sides of the transaction, requires planning, involvement of technical people in the project, training of employees, adjustment of processes accordingly, adjustment of the IT system to new requirements and involvement of an IT implementer;
• Time for implementation until the beginning of 2023. For large organizations this may not be enough time.

What to take care of before implementation (challenges):

• Formalizing the invoice delivery process (selling party);
• Making sure the system can connect to the National e-Invoice System (selling party);
• Getting ready to receive a structured invoice (purchasing party).

Enterprise Resources Planning (ERP) systems and the National e-Invoice System

Invoice creation process:

• Vendor creates sales invoice and creates xml file
• Posts the xml file to the National e-Invoice System and receives feedback
• Purchaser downloads the xml file invoice from their account and imports it as a purchase invoice. (At this stage, he can download the invoice in xml or pdf file)
• If the buyer does not have an account in the National e-Invoice System, the start looks the same, but at the same time the invoice must be sent in the currently established form to the buyer. Will be implemented by ERP systems that need to communicate with the National e-Invoice System.

The platform with the Polish National e-Invoice System, provided by the Polish Ministry of Finance, is basic for issuing structured invoices.

The National e-Invoice System process as Electronic Data Interchange (e-invoice is one form of EDI communication): in 2022 the National e-Invoice System can be used as one form of EDI exchange. You skip putting the invoice in the National e-Invoice System and send the invoice e.g. by email.

Invoice sending process:

• Each invoice is assigned a status: accepted – it has been sent and the National e-Invoice System number has been accepted; to send – an xml document has been generated but not sent to the National e-Invoice System; none – an xml file is generated (as a result of an export). The xml file is then sent to the National e-Invoice System after a preliminary check for compliance with the scheme before it is processed in the National e-Invoice System;
• The buyer can download the invoices within a certain time range and saves them in the selected path. Once it is saved, invoices are imported from the National e-Invoice System in the appropriate type.

It is possible to visualise the invoice before sending it to the National e-Invoice System.

Using the National e-Invoice System definitions without sending the invoice to the system:

• Can be done in a similar way to how it works in Electronic Data Interchange
• Once the invoice is created, we save and import it in a similar way as an invoice from the National e-Invoice System, in theory it is ready to be sent to the National e-Invoice System, but can be sent by email. Using the National e-Invoice System you can send invoices in a similar way as with Electronic Data Interchange.

During the trial tests, some problems appeared in the form of a scheme (some fields in the scheme may be associated with several values), poor possibility of sending additional information (e.g. related to the quantity of goods), lack of buyers’ and recipients’ EAN codes, lack of units of measure, no support for the division of payments (e.g. part in cash, part by transfer).

How to prepare your company for integration with the National e-Invoice System?

Business advantages and risks:

• Advantages:
  • Rapid delivery of document and acceleration of the process of receiving payment (selling party)
  • Confirmation of receipt (selling party)
  • No need to confirm corrections (selling party)
  • No need to send duplicates (selling party)
  • Archiving in the National e-Invoice System (selling party)
  • Possession of a repository of the purchase document (purchasing party)
  • Automation of document registration (purchasing party)
  • No obligation to confirm document receipt (purchasing party)
  • Easier communication with accounting offices
• Risks:
  • No “flexible” elements, e.g. correction of an invoice without the need to issue a correction invoice (selling party)
  • Lack of staff competence or organizational problems (selling party)
  • Failure to complete the invoice properly (selling party)
  • Inability to provide attachments with the invoice (selling and buying parties)
  • Inability to add various additional information on the invoice (selling party)
  • Less control over the document in case of downloading a large number of documents in an automated process (purchasing party)
  • Possibility of sending a document that is factually or formally incorrect, because the National e-Invoice System only checks the document from a technical point of view (purchasing party)
  • No possibility of sending back a document without posting (purchasing party)
  • No control in case of downloading documents by an accounting office.

How to prepare for the introduction of the Polish National e-Invoice System?

• Analyze the path of internal documents and analyze this in terms of issuing a sales invoice. Consider how to do this so that there were fewer documents
• If you issue invoices with large documents, it is a good idea to have a procedure in place to review and approve such a document before sending to the National e-Invoice System
• Recording customer orders
• Reflect on the most common mistakes and eliminate them
• Review invoice verification process in terms of content and form
• Registration of cost orders
• Organizational changes and proper attitude of people to the National e-Invoice System implementation
• Integration through e.g. EDI with suppliers, people who send a lot of invoices
• Automation of cost orders
• Begin preparations for the National e-Invoice System implementation as soon as possible.

Legal basis: Act of 29 October 2021 amending the Act on Value Added Tax and certain other acts (Journal of Laws of 2021, position 2076) and Regulation of the Minister of Finance of 27 December 2021 on the use of the National e-Invoice System.