Alignment of 2026 Foreign VAT Refund Procedures with Poland's KSeF Mandatory E-Invoicing Regime
The Polish Ministry of Finance has recently published a draft regulation aimed at aligning the VAT refund process for foreign businesses with the amendments made to VAT regulations regarding the introduction of the mandatory National e-Invoice System (KSeF).
Currently, one of the formal requirements for obtaining a VAT refund is to attach invoices documenting those purchases to the refund application. However, given the introduction of mandatory e-invoicing, it is no longer appropriate to maintain a general requirement to attach invoices to the application.
Effective from January 1, 2026, these proposed changes will necessitate that businesses claiming VAT refunds in Poland reference KSeF (Krajowy System e-Faktur) invoice identification numbers in their applications, where applicable. This initiative streamlines the refund process and further integrates Poland's structured e-invoicing framework into broader VAT administration and compliance.
The New Requirements for EU Businesses
For businesses registered in the EU, the new regulations stipulate that all VAT refund applications submitted through their respective domestic tax authorities must include the KSeF invoice reference numbers for purchases eligible for a VAT refund. This change aims to enhance transparency and traceability in the taxation process, making it easier for authorities to verify claims. In instances where KSeF references are unavailable, companies will need to provide copies of the relevant invoices—including electronic formats—to substantiate their claims.
Obligations for Non-EU Businesses
Non-EU businesses will also be subject to similar requirements under the new regulation. They are expected to supply KSeF invoice references when possible, or, alternatively, to submit supporting invoices directly to the Polish tax authorities along with their refund claims. This approach equally emphasizes control and accuracy, aiming to reduce the potential for fraud and enhance compliance for foreign entities operating in the Polish market.
Transitional Measures for 2026
To ensure a smooth transition into this new regulatory environment, the draft regulation includes transitional measures. Claims related to VAT periods before January 1, 2026, will continue to follow the existing procedures, so businesses do not need to worry about adjustments impacting prior submissions. However, it is critical to note that refunds for periods starting in 2026 will be processed under the new documentation requirements based on the timing of the application submission and the formal enactment of the regulations.
Implications for VAT Administration
This initiative marks a significant advancement in Poland's ongoing efforts to align VAT compliance with modern technological frameworks. The extension of the KSeF system beyond domestic invoicing not only helps in standardizing cross-border VAT refund processes but also enhances the administrative efficiency of tax audits and compliance checks. By embedding KSeF reference numbers into the refund application process, the Ministry aims to simplify procedural requirements.
The implications of these changes are considerable, as they represent a move towards more digitally integrated and transparent financial transactions. Businesses engaged in cross-border trade with Poland will need to familiarize themselves with these updated procedures well in advance of the January 2026 deadline to ensure compliance and avoid any disruptions to their operations.
Conclusion
The proposed alignment of foreign VAT refund procedures with the KSeF mandatory e-invoicing regime is a natural evolution in Poland's tax administration strategy. As businesses prepare for these changes, the emphasis on KSeF invoice identification will modernize the refund process and enforce a higher standard of accountability. Companies operating internationally must remain proactive in understanding these regulations to adeptly navigate the complexities of VAT compliance in Poland and beyond.
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
