E-Invoicing and the National e-Invoicing System
On 1 January 2022, a new system for issuing and storing invoices will be launched. This is an initiative of the Ministry of Finance. Until 2023, its use will be voluntary and will bring additional benefits for entrepreneurs. For example, they can count on a faster VAT refund. From 1 April 2023, the system will become mandatory for entrepreneurs and institutions. It is worth taking a look at it and even considering implementing it right now.
The new system addresses two tasks:
- facilitating settlements between entrepreneurs,
- speeding up the detection of VAT fraud.
Image author: Nataliya Vaitkkevich, source: pexels.com
How does the National e-Invoicing System (KSeF) work?
E-invoices will be prepared using taxpayers’ accounting software and sent to the KSeF using a special interface. The system will automatically verify and authorise such invoices, and then make them available to contractors. The basic function of the system will be issuing and storing of structured invoices. Here, the entrepreneur will also receive and store the invoices from their contractors who use KSeF.
A structured invoice (also called an e-invoice) is a new type of electronic invoice.
It is issued only through the National e-Invoicing System. Its template is strictly defined.
Until 2023, sales can be documented using three types of invoices. These are:
- paper invoice
- electronic invoice
- e-invoice, or structured invoice.
The Ministry of Finance plans that from 1 April 2023, only e-invoices will be allowed.
The main aim of the Ministry of Finance in introducing KSeF and structured invoices was to tighten up the tax system, especially in order to reduce VAT fraud. At the same time, a functional tool with many benefits for users was created, which allows them to save time and money.
Especially at this time, when using KSeF is voluntary, entrepreneurs who issue structured invoices can take advantage of the additional benefits.
Why is it worth issuing e-invoices?
The new invoicing system increases the entrepreneur’s security, facilitates processes related to accounting and storing invoices, as well as helps with settlements between entrepreneurs, namely:
- protecting the entrepreneur from tax criminals
According to law, it is the entrepreneur’s responsibility to verify the credibility of any contractor whom they pay for goods and/or services. Currently, they have at their disposal such tools as the so-called VAT taxpayers’ white list, the split payment mechanism, or the Standard Audit File (JPK), which assist with prevention of tax crime. Entrepreneurs who decide to use KSeF can be certain that the invoices they receive are subject to ongoing control by the tax authorities, which will significantly increase their security. Of course, the system will only be fully functional once all companies are using it. When it happens, the risk of accidentally becoming involved in a so-called VAT carousel and the associated problems will be minimal.
- saving time and work in the event of a tax inspection
Entrepreneurs using KSeF will not have to waste time on preparing documentation. Data from the system will be sufficient for the officials inspecting the company.
- enabling secure storage of information
KSeF will store e-invoices for 10 years, which means you will not have to archive your accounting documentation yourself for the period required by law or issue duplicates of documents. Everything will be available in the system.
- speeding up turnover between entrepreneurs
The e-invoice will always reach the recipient, and you will always know when it was downloaded – this may be an additional motivation for timely payments by contractors.
- accelerating accounting processes
One standardised invoice template and no requirement to enter documents manually will certainly make accountants’ work easier.
Additionally, entrepreneurs who voluntarily decide to use KSeF can count on faster VAT refunds, up to a certain amount. They will receive the return after a maximum of 40 days, rather than after 60. Using e-invoices will also eliminate the documentary obligations associated with issuing correction invoices that reduce the sale amount.
E-invoicing and integration with KSeF on the Banqup platform
The Polish National e-Invoicing System is based on a similar solution introduced several years ago in Italy. A similar system also functions in Belgium and France, where Banqup customers have long benefited from the ability to extend the national system with numerous additional functions of our platform.
The Banqup platform for Polish customers will be integrated with the National Invoice Record System, which will ensure a full exchange between companies using the new mechanisms. As a result, entrepreneurs – Banqup customers – will receive a comprehensive solution for managing settlements, payments and cooperation with customers, contractors, and accountants.
The solutions proposed by the Ministry of Finance are new in Poland and it is worth taking advantage of platforms that have been proven to work in this model in other markets of the European Union. Banqup is such a solution.