Starting from July 2024 for active taxpayers, and from January 2025 for all Polish entrepreneurs, the use of the National e-Invoicing System (KSeF) will be mandatory. This will affect the documentation process for transactions with both domestic and foreign contractors. Due to the complexity of invoicing for entities from outside Poland and invoicing in currencies other than PLN, it is necessary to analyse when the use of KSeF will be obligatory and when it will be optional.
In accordance with the regulations introducing the National e-Invoicing System (KSeF), all taxpayers based in Poland who issue accounting documents in accordance with the Act on Goods and Services Tax will be obligated to use this new system. As a result, structured invoices will serve as a tool to confirm transactions conducted in Poland not only by domestic companies but also by foreign entities and international organizations conducting business activities in Poland.
Invoices from foreign entities
The use of the National e-Invoicing System (KSeF) applies only to Polish entrepreneurs. This means that business partners from outside Poland are not obliged to use structured invoices. If you receive an invoice from a foreign supplier, it will not be available in the National e-Invoicing System (KSeF), and to in accordance with the ministry’s guidelines, it is not necessary to enter it into the system.
Invoices for foreign entities
The situation is different when it comes to invoices issued to foreign entities. A recipient from outside Poland, as a foreign contractor, does not have a permanent place of business in Poland and therefore does not have access to the National e-Invoicing System (KSeF). This means they will not retrieve an invoice issued by this system.
In accordance with existing regulations, it is also necessary to issue an invoice in KSeF to foreign entities. Subsequently, this invoice must be provided to the recipient outside the National e-Invoicing System through an agreed-upon method, such as in paper form or via email.
Such a structured invoice must be marked with a QR code, which allows access to the invoice in KSeF and verification of the data contained within it. This ensures that the invoice remains in a structured format, and foreign contractors receive invoices in a visualized form, similar to those issued with the use of financial-accounting software.
Foreign companies operating in Poland
Foreign taxpayers with a fixed place of business in Poland for VAT purposes are obliged to use the National e-Invoicing System (KSeF). A foreign entity with a Polish Tax Identification Number (NIP) can operate independently or through an authorized representative.
In such a case, it is necessary for the entity to submit a notification (ZAW-FA) designating a natural person to act as a representative in the National e-Invoicing System (KSeF). Within this notification, the entity appoints the person to manage permissions, issue invoices on behalf of the enterprise, obtain permissions, and gain access to electronic invoices.
Domestic invoices issued in foreign currency
An important aspect related to the National e-Invoicing System (KSeF) is the issuance of invoices in a foreign currency when the recipient is a domestic entity.
When completing an invoice to be issued in a foreign currency, please pay attention to the mandatory field “KodWaluty” (Currency Code), which must always be completed, regardless of the currency in which the invoice is issued. For invoices in Polish currency, it is necessary to provide the three-letter currency code PLN. For invoices in another currency, the currency code must comply with the ISO-4217 classification, such as EUR, USD, and the “KursWaluty” (Exchange Rate) field must also be completed.
On an invoice issued in a foreign currency, only the tax amount in the “P_14_xW” field is converted to PLN in accordance with Article 106e(11) of the VAT Act:
“Tax amounts are shown in złotys. Tax amounts expressed in a foreign currency are shown in złotys using the conversion principles adopted for calculating amounts used to determine the taxable base. Amounts shown on the invoice are rounded to the nearest groszy, with fractions below 0.5 groszy being omitted, and fractions from 0.5 groszy being rounded to 1 groszy.”
Learn more about the National e-Invoicing System (KSeF) on our website: National e-Invoicing System (KSeF)
If you have any questions regarding this topic or if you are in need for any additional information – please do not hesitate to contact us:
CUSTOMER RELATIONSHIPS DEPARTMENT
Head of Customer Relationships
Department / Senior Manager