No KSeF penalties until the end of 2027: how to make the most of the extended transition period?

The Ministry of Finance (MF) has recently announced its intention to extend until the end of 2027 the period during which penalties will not be imposed for errors related to the National e-Invoicing System (KSeF). The change still requires an amendment to the VAT Act; however, we do not anticipate any significant complications in this regard.

At the same time, the MF has emphasised that the deferral of penalties related to KSeF does not mean that the obligation to use the system is suspended. The tax authorities are already expected to respond to cases where invoices are issued outside KSeF and to examine whether irregularities in the use of the system lead to inaccurate VAT reporting. In other words, although the risk of penalties for certain errors has been temporarily limited, taxpayers’ obligations remain unchanged.

While supporting taxpayers, we continue to encounter numerous questions and uncertainties concerning the operation of KSeF. At the same time, we observe how significantly the system can streamline data flows and improve the efficiency of business processes, if it is implemented correctly and adapted to the specific nature of a given entity’s operations.

In our view, the extended transitional period creates an ideal opportunity to verify the Company’s level of readiness to operate within the KSeF environment, particularly with respect to established processes and areas that may still raise practical concerns. This includes, for example: (i) KSeF invoice visualisation, (ii) the invoice correction process, (iii) document workflow organisation, including the handling of purchase documents received from suppliers outside KSeF, and (iv) the verification of received invoices and the resolution of any identified discrepancies.

At the same time, through our support of taxpayers during VAT audits, we observe that the tax authorities continue to examine whether due diligence has been exercised in the verification of business partners and transactions, both on the purchase side and on the sales side. In practice, this means that even during the KSeF transitional period, matters relating to the proper documentation of business transactions and the safeguarding of tax settlements remain a key area of interest for the authorities.

This is also confirmed by the current practice regarding tax rulings. A significant proportion of applications for individual tax rulings concerning KSeF focus not so much on the technical aspects of implementing the system, but rather on securing the tax consequences of potential irregularities. This applies in particular to the protection of the right to deduct VAT in situations where errors or failures to comply with specific obligations occur on the part of suppliers or customers.

Consequently, the current transitional period may serve not only as a time to organise and verify KSeF-related processes, but also as an opportunity to assess whether certain matters require additional protection from a tax perspective, for example through obtaining an individual tax ruling. This can help mitigate risks associated with the future operation of the system before the full enforcement of penalties begins. It is worth taking advantage of the current environment in this respect, as the absence of significant sanctions is contributing to a relatively favourable approach to issuing individual tax rulings, which may help clarify certain issues even after the sanctions regime becomes fully effective.

We would be pleased to arrange a brief, non-binding teleconference to discuss potential KSeF-related issues, areas requiring further review, and possible actions aimed at safeguarding your tax position.

Andrzej Kapczuk
PARTNER | TAX ADVISOR

+48 660 440 174
andrzej.kapczuk@thedy.pl
ul. Moniuszki 1A (17 p.)
00-014 Warszawa