Poland plans to extend e-invoice (KseF) penalty deferral until the end of 2027

Poland plans to extend the penalty-free transition for e-invoice- KSeF errors until 31 December 2027. The obligation to use KSeF will remain, but businesses will receive more time to adapt their invoicing processes without facing dedicated KSeF penalties for mistakes.

The Polish Ministry of Finance announced in the middle of September 2026 that it plans to extend the deferral of penalties for errors related to the use of the National e-Invoice System – KSeF (Krajowy System e-Faktur) until 31 December 2027.

The measure responds to requests from businesses, industry organizations, tax advisers and software providers that have raised concerns about adapting processes to Poland's phased introduction of mandatory electronic invoicing. The extension still requires an amendment to legislation, and the Ministry of Finance has announced that it is starting work on the necessary draft law.

Importantly, the announcement does not postpone mandatory KSeF itself.

Poland introduced mandatory KSeF in several stages. The system became mandatory for the largest businesses from 1 February 2026, followed by most other businesses from 1 April 2026. A transitional exemption remains until the end of 2026 for the smallest businesses whose monthly sales documented by invoices do not exceed PLN 10,000 gross.

From 1 January 2027, this remaining transitional period ends, meaning the smallest businesses covered by that exemption will also enter mandatory KSeF. Statutory exceptions to mandatory KSeF will continue to apply where provided by law.

The Ministry's new proposal therefore concerns penalties, not the obligation to use the system.

Businesses that are required to issue invoices through KSeF will still have to comply with that obligation during 2027.

Penalties would be postponed for another year. Under the existing framework, dedicated penalties for violations of KSeF obligations were scheduled to apply to infringements committed from 1 January 2027. The Ministry now proposes postponing their application until the end of 2027.

This means that 2027 would effectively become another adaptation period during which businesses can continue improving their invoicing processes and learning how to use KSeF without immediately facing dedicated financial penalties for mistakes connected with the system.

According to the Ministry of Finance, the extension is particularly important for the smallest businesses, because many of them will only become subject to mandatory KSeF from 1 January 2027.

Minister of Finance Andrzej Domański explained that the KSeF project has been extensively discussed with entrepreneurs, industry organizations, tax advisers and software providers. According to the Ministry, extending the penalty deferral should give businesses additional time to fully implement their processes while allowing the digitalization of Poland's tax system to continue.

The penalty deferral should not be interpreted as permission to ignore KSeF requirements.

The National Revenue Administration – KAS will continue to monitor whether businesses comply with their mandatory e-invoicing obligations.

According to the Ministry, in 2027 KAS intends primarily to support businesses in correctly applying KSeF and remind them of their obligations under the VAT Act. Businesses will also continue to have access to various forms of assistance provided by the tax administration.

However, tax authorities will still react when businesses issue invoices outside KSeF despite being legally required to use the system, except in situations where issuing an invoice outside KSeF is specifically permitted by legislation. KAS may also examine whether failure to use KSeF correctly has resulted in incorrect or unreliable tax settlements. Therefore, the proposal should be understood as a softer approach to dedicated KSeF penalties during the implementation period, rather than a suspension of KSeF compliance requirements.

Larger taxpayers, accounting departments, ERP providers, invoicing software companies and tax advisers will also receive additional time to improve the processes they have already introduced for KSeF.

Businesses have had to adapt invoice creation, transmission, receipt, correction, authorization and accounting processes to the new centralized system. In many cases, implementation also requires integration between KSeF and existing ERP, accounting and invoicing software.

For software providers, the additional period gives more time to stabilize integrations, improve handling of exceptions and adjust internal business processes based on practical experience with the mandatory system.

The extension is currently a government proposal and not yet an adopted legal change. Existing legislation provides for the dedicated KSeF penalty regime from 1 January 2027. To extend the deferral through 31 December 2027, the relevant statutory provisions must therefore be amended.

The Ministry of Finance has confirmed that it is beginning work on the draft legislation early enough to allow the necessary legislative procedure to be completed.

From our point of view, the extension is a practical response to the complexity of implementing mandatory e-invoicing across businesses of very different sizes. It is especially relevant for the smallest taxpayers, who will only enter mandatory KSeF from January 2027 and would otherwise have faced penalties immediately after their transitional period ended.

However, businesses should not treat the proposal as an additional year in which KSeF can be ignored. The obligation remains, and KAS has clearly stated that it will react when invoices are issued outside KSeF without a legal basis and will investigate situations that may affect the accuracy of tax settlements.

The additional year should therefore be used to stabilize processes rather than postpone implementation.

Implementation impact:

Businesses should continue implementing and using KSeF according to the applicable mandatory dates. Companies entering the system from 1 January 2027 should not delay their preparation because of the proposed penalty deferral.

Companies should use the additional transition period to test KSeF integrations, train employees, review invoice workflows, permissions and exception scenarios, and ensure that ERP and accounting systems correctly communicate with KSeF.

Software and ERP providers should continue improving KSeF integrations and monitoring further Ministry of Finance guidance and legislative changes.

Most importantly, businesses should distinguish between deferral of penalties and deferral of the KSeF obligation. The Ministry proposes postponing dedicated penalties for KSeF errors until 31 December 2027, but mandatory electronic invoicing itself continues according to the existing implementation timetable.

Because statutory amendments are still required, businesses should also follow the legislative process until the extension is formally adopted.

 The text above is based on the article that was issued by the Ministry of Finance of Poland. Source

Nikolina Basić, Senior Legal Consultant at Fiscal Solutions

Linkedin profile