MANDATE POSTPONED: Poland's Leap into the Future of Finance

In an era where digital transformation is pivotal, Poland is taking a significant step towards modernizing its financial operations. The mandatory implementation of Business-to-Business (B2B) electronic invoicing through the KSeF platform, originally set to commence July 1, 2024, marks a transformative period for all VAT taxpayers operating within its borders.

Hot news in January 2024: mandate postponement announced

On Friday, January 19, 2024, Andrzej Domański, Minister of Finance in Poland, announced a delay to the mandate due to critical errors in KSeF, the Polish government’s platform for the issuance and reception of e-invoices. According to the Minister, the mandate will not start in 2024 as planned, and a new date will be announced after KSeF undergoes an external audit.

Now what?

Some speculations have already been heard of a new date: the beginning of 2025, as well as July 2025, have been mentioned. The truth is that no one knows. But the biggest question, of course, is: how should companies react to this news?

The simple answer: use this time to your benefit and gain an upper hand. Continue your preparations, fine-tune your processes and IT systems, utilize the extra time to thoroughly train your teams, and confirm your readiness for the upcoming mandate. Halting projects now would be counterproductive, risking the loss of prepwork and focus achieved so far. Being prepared ahead of schedule allows for unexpected surprises or challenges that may arise. Your e-invoices are already welcomed by numerous customers and suppliers and the broader benefits of e-invoicing are endless for your business!

Let’s take a look at the background and plans of the Polish B2B e-invoicing mandate:

Understanding the mandate

The Polish President's ratification of the law necessitated the issuance of invoices via the National Electronic Invoice System (KSeF). This groundbreaking move, officially published in the Journal of Laws, will propel Poland to the forefront of digital finance management in Europe.

Legal framework and strategy

The shift to mandatory B2B e-invoicing in Poland aligns with the European Directive 2014/55/EU. This transition, part of a broader national e-invoicing strategy stretching from 2023 to 2030, aims to integrate systems for both public and private sectors, enhancing operational efficiency across the board.

The scope and obligations

From a new date or dates yet to be announced, every VAT-registered entity in Poland, whether based locally or having a fixed establishment, must adhere to this e-invoicing requirement. This mandate encompasses all B2B transactions, with specific exemptions for entities under VAT exceptions.

The journey to e-invoicing

Poland's journey towards full B2B e-invoicing compliance began with a voluntary phase in January 2022. During this phase, companies started issuing structured invoices through KSeF, thereby enjoying early tax benefits. The full-fledged transition by a new date to be announced will see all non-exempt entities adopting this structured electronic format.

Adoption and implementation

As of late 2022, over 17,000 entities were registered on the KSeF platform, signifying a strong initial adoption. Yet plenty remains to be done. The integration of KSeF with existing platforms like PEF (Peppol E-invoicing Framework) ensures a comprehensive system covering both B2B and Business-to-Government (B2G) invoicing.

Incentivizing compliance

The Polish government, aiming to facilitate a smooth transition, has offered incentives such as a reduced VAT refund period and potential exemptions from filing specific tax forms. This strategic approach was designed to encourage early adoption and compliance.

Benefits and monitoring

This digital transformation in invoicing is expected to yield significant operational and environmental benefits. The government monitors the uptake of these systems to ensure smooth implementation and compliance. And making a stop in January 2024 when discovering issues with the KSeF platform underlines this, a smart move.

Embrace the future

Poland's mandatory B2B e-invoicing initiative is more than a regulatory change. It's a step towards a more efficient, transparent, and modern financial ecosystem. As the new date is announced and approaches, finance professionals in Poland and those engaging in cross-border transactions with Polish entities must gear up for this significant shift, ensuring compliance and leveraging the benefits of a digital-first approach to finance management

If you do business in Poland and need to cover the mandate or need a trustworthy partner with extensive experience handling mandates anywhere in the world, please contact us