Beginning February 1, 2026, with a grace period extending to April 1 for small taxpayers, Poland will implement its mandatory national B2B e-invoicing system, known as KSeF (Krajowy System e-Faktur).
This initiative represents a significant advancement in the digital transformation of tax reporting, mandating that most taxpayers issue and receive structured e-invoices through a centralized government platform.
A critical question arises for businesses: What are the consequences if they do not adopt KSeF by 2026? Will their customers’ ability to deduct VAT be affected? Recent guidance from the Polish Ministry of Finance clarifies these points but also highlights potential risks that extend beyond formal penalties.
No Penalties Until 2027—but the Risks Remain
The Ministry of Finance has confirmed that no financial penalties or formal sanctions for non-compliance with the KSeF e-invoicing obligation will be enforced until January 1, 2027. This transitional period throughout 2026 is intended to allow businesses time to adapt to the new system and address any implementation challenges.
Consequently, taxpayers who continue to issue invoices outside of KSeF in 2026 will not incur fines. This could lead some businesses to think they can delay compliance without repercussions.
However, such an interpretation is shortsighted. The absence of formal penalties does not eliminate the risks associated with issuing invoices outside KSeF in 2026, particularly regarding VAT compliance and income tax documentation.
Risks to Customers' VAT Deductions
A primary objective of KSeF is to establish a secure, standardized framework for issuing and tracking invoices. This framework aims to provide both suppliers and buyers with a reliable digital audit trail that facilitates due diligence, a crucial aspect of Polish VAT law.
The Ministry has emphasized that KSeF will significantly simplify the proof of due diligence required for input VAT deductions. Under Polish tax regulations, a buyer must demonstrate that they took reasonable steps to ensure the legitimacy of the transaction and that the supplier is properly registered for VAT.
What happens if a seller issues an invoice outside of KSeF during the grace period in 2026? Formally, the buyer is still able to deduct VAT from such an invoice, as the Ministry has not stated that non-KSeF invoices will automatically invalidate input VAT claims.
However, these invoices will lack the protective digital infrastructure provided by KSeF. Consequently, buyers may face a heightened evidentiary burden during audits. They could be required to present additional documentation, offer more detailed explanations of the transaction, or even experience delays in VAT refunds. While non-KSeF invoices may be legally valid, they are inherently less robust in terms of compliance.
This situation poses significant reputational and practical risks for businesses that delay KSeF adoption. If a company continues to issue traditional invoices in 2026, its customers may start to question the security and legal protection of those invoices compared to those generated through KSeF.
The Case for Timely Adoption
Despite the grace period extending into 2027, the advantages of early KSeF adoption are substantial. By issuing invoices through the system starting in February or April 2026, businesses can provide customers with a more secure documentation trail, reduce the likelihood of VAT deduction challenges, and demonstrate a proactive approach to compliance.
In addition to compliance benefits, KSeF adoption offers operational efficiencies. It streamlines the invoicing process, minimizes the need for paper records, and standardizes invoice format and content. Over time, this will likely lead to expedited VAT processing, a decrease in administrative errors, and a lower audit risk.
Delaying KSeF implementation until the last possible moment might help businesses avoid penalties in the short term, but it can lead to significant disadvantages concerning tax risk and customer relationships.
How Can KGT Support You?
KGT has created an SAP-integrated SAF-T add-on solution for Poland, featuring outbound and inbound functionalities to meet tax reporting requirements. This add-on includes a data extractor and a cockpit for generating periodic e-invoicing files in the legal format and controls before submission. When SAP DRC launched the Polish e-invoicing solution as part of its e-document offerings, KGT emerged as a leading consultancy firm for SAP DRC and tax services. Recognized as an SAP DRC partner for Polish e-invoicing services, KGT is one of SAP's recommended implementation partners for this solution. We provide comprehensive support, including installation, configuration, customization, and training, to help you maximize the long-term value of your SAP DRC investment.
KGT is an SAP partner for PE services and an SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409
