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The National e-Invoicing System (KSeF) is one of the most significant reforms in the Polish tax system in recent years. Introduced by the Ministry of Finance, it aims to digitise invoice circulation and increase control over business transactions. However, is the new system a step towards business modernisation, or is it a challenge for entrepreneurs?
Current invoice workflow model vs. KSeF
Until now, invoices could be issued in paper or electronic form, provided that they were accepted by the recipient or provided a qualified signature. Entrepreneurs had complete freedom in choosing the format, accounting system, and document storage method. Tax audits took place mainly at the company’s headquarters or using data sent as part of the SAF-T.
The KSeF introduces a central system through which all structural invoices must pass. Each document receives a unique KSeF number and is automatically registered in the tax system. This allows the tax administration to monitor transactions on an ongoing basis and enforces the standardisation of document formats by the government’s XML structure.
Benefits for entrepreneurs
Process automation and improvement
The KSeF eliminates the need to send invoices by traditional mail or e-mail. Documents go directly to the recipient’s system, speeding up circulation and reducing the risk of losing them. A uniform structure allows for full invoice processing automation, regardless of the number of contractors.
Cost reduction
Thanks to digitisation, entrepreneurs can reduce printing, sending, and archiving expenses. Central storage of invoices in the KSeF also eliminates the need to create backup systems.
Increased legal certainty
Invoices issued in the KSeF system are considered official documents, reducing the risk of disputes over their authenticity. Automatic numbering prevents document duplication and provides an unambiguous source of truth.
Simplified settlements
The automatic data transfer to the tax system simplifies settlements, and VAT refunds can be processed faster.
Entrepreneurs’ concerns
Technical challenges
Companies must adapt their IT systems to the KSeF’s requirements, which often involves purchasing new software or modernising existing tools. The stability of the system, especially during peak periods, and the requirement for a permanent internet connection or offline invoicing are also concerns.
Organizational problems
Implementing the KSeF requires training accounting staff and implementing changes in existing procedures. Small companies are afraid of costs and problems that did not exist before, such as an invoice with an incorrect NIP that will not reach the actual contractor, or the rejection by KSeF of an invoice issued offline24 and the inability to communicate with the customer, especially in a brick-and-mortar store. Identifying an incoming invoice in organisations that use multiple purchasing systems can also be challenging, which increases the risk of fraud.
Another challenge is the inability to edit an invoice after it has been approved in the KSeF – the widespread practice of manual correction of errors will have to be replaced by issuing corrective documents. In addition, the correction invoice must refer to the KSeF number of the source document, which can complicate the entire process. The status of invoices in the event of a merger of companies, a change of the NIP or the termination of business activity also raises doubts – they remain in the KSeF system permanently.
Legislative uncertainty
Entrepreneurs point to the lack of precise transitional provisions and numerous interpretative ambiguities regarding some aspects of the system’s operation. They are also concerned about further regulation changes after implementing the system, which could force costly system updates. Therefore, many companies will decide to issue all invoices through the KSeF, due to the lack of certainty in distinguishing between B2C and B2B documents.
Concerns about over-surveillance
Tax offices could control invoices only after they were issued and reported in the SAF-T file. The KSeF will enable tax authorities to immediately view each issued invoice, which contains much more information than the information sent in the SAF-T. A common KSeF identifier for sales, purchases, and payments will allow the National Revenue Administration to perform advanced data analysis and quickly detect irregularities.
Summary
The KSeF is a milestone towards the digitisation of the Polish economy and can bring long-term benefits to entrepreneurs and public administration. However, the success of this project depends on the effective operation of the Ministry of Finance’s IT systems, providing adequate support for companies, and creating a stable legal framework.
Entrepreneurs should prepare for the implementation now, both technologically and organizationally. Investing in modern IT systems and employee training may become a necessity and an opportunity to modernise business processes.
We have Smartksef in our portfolio. It’s a secure, cloud-based solution that allows seamless communication with KSeF and e-invoicing processing.
Are you curious how companies for which the e-invoicing process is crucial for efficient operations prepare for the KSeF? Read more:
