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Poland Narrows KSeF Scope for Non-Residents: Focus on Fixed Establishment Involvement

On January 28, 2026, Poland’s Ministry of Finance provided essential clarification regarding the applicability of the Krajowy System e-Faktur (KSeF) e-invoicing system for foreign businesses, effective from February 1, 2026.

This update is particularly significant because it determines the criteria under which foreign entities must comply with Poland’s e-invoicing requirements.

Key Clarification: Fixed Establishment Over VAT Registration

The core takeaway from the Ministry's guidance is that a Polish VAT registration alone is not sufficient to trigger KSeF obligations for foreign businesses. Instead, the e-invoicing requirement applies only when a foreign entity has a Polish fixed establishment ("FE"; in Polish "SMPD") that actively participates in the specific transactions being invoiced.

If a foreign entity has a Polish Fiscal Identification Number (FE) and issues an invoice using this number, it will be considered as taking part in the supply of goods or services in Poland, unless proven otherwise.

This clarification aligns with the principles laid out in Council Implementing Regulation (EU) No 282/2011 and the relevant case law from the Court of Justice of the European Union.

Cumulative Conditions for Fixed Establishment

Under this revised directive, three cumulative conditions must be met for a foreign business to be considered as having a fixed establishment in Poland:

  • Personnel and Technical Resources: The entity must have the necessary personnel and technical resources available in Poland.
  • Structural Capability: There should be a physical structure capable of supplying the relevant services. This implies that mere presence without an operational facility will not suffice.
  • Sufficient Permanence*: The establishment must exhibit a degree of permanence, demonstrating that it is not merely a transient setup.

Importantly, basic assets such as a postal address, VAT number, or passive warehouse do not satisfy these criteria.

Involvement in the Transaction

Even if a foreign entity has a Polish fixed establishment, the KSeF obligations will not apply unless that establishment is involved in the supply of the goods or services being invoiced. For instance, if a Polish FE solely functions as a storage facility, an administrative office, or employs unrelated staff, this involvement is not deemed sufficient for KSeF compliance.

Supplier Responsibilities

It is crucial for suppliers to assess whether their customers have a relevant Polish fixed establishment based on the operational realities of their businesses rather than simply relying on VAT identification numbers. This necessitates a more nuanced approach to verifying customer operations to ensure compliance with the KSeF requirements.

Conclusion

The recent guidance issued by Poland's Ministry of Finance significantly narrows the applicability of the KSeF e-invoicing system for non-resident businesses. By focusing on the involvement of a Polish fixed establishment rather than merely on VAT registration, this clarification brings clarity and precision to compliance obligations. Businesses operating internationally must now critically evaluate their operational presence in Poland and ensure compliance with the updated KSeF regulations to avoid potential non-compliance penalties. This development underscores the importance of maintaining thorough documentation and understanding local regulations, especially for foreign entities engaging in cross-border transactions.

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

Country update for Poland
05 February 2026
Stay informed about the latest indirect tax developments in Poland, including regulatory changes, compliance requirements, and indirect tax guidance affecting businesses operating locally and cross-border. This page provides a structured overview of country-specific updates, such as new legislation, reporting obligations, digital tax initiatives, and implementation timelines.
These insights help tax, finance, and compliance professionals anticipate regulatory changes, adjust processes and systems, and maintain compliant operations in Poland.