The introduction of the National e-Invoicing System (KSeF) is one of the most important changes to the Polish tax system in recent years. The system is intended not only to digitalise the flow of invoices, but also to improve the transparency of settlements and to detect irregularities more effectively, including sham self-employment.
The new regulations provide, among other things, for an obligation to issue at least one VAT invoice a month by a taxpayer who uses KSeF. This measure is meant to help the tax authorities identify entities that use self-employment solely for tax optimisation purposes, without any genuine business activity.
What is sham self-employment?
Sham self-employment is a phenomenon in which a person formally runs a business or works under a B2B contract, but in practice works like a full-time employee for a single client. This form of cooperation can reduce contribution and tax obligations, which lowers costs for the client, but at the same time breaches the principles of fair competition and the provisions of employment and social insurance law.
The tax and inspection authorities are becoming increasingly effective at identifying such practices, and the implementation of KSeF is another step towards eliminating irregularities.
How is KSeF meant to support the fight against abuse?
KSeF gives the tax authorities constant, up-to-date access to information on VAT invoices issued. As a result, the tax authorities can:
- detect anomalies in settlements more quickly,
- identify entities that do not carry on genuine business activity,
- monitor the flow of documents and verify their authenticity.
In practice, if a business owner runs a business but does not issue any invoice in a given month, the system will be able to record this immediately and trigger an audit alert. This in turn will make it easier to verify whether the activity is genuine or is used mainly for tax purposes.
The one-invoice obligation - what does it mean in practice?
The introduction of a minimum threshold of one invoice a month is intended to eliminate situations in which entities are formally active but in reality do not carry on any revenue-generating activity. Such a mechanism may lead to:
- a reduction in the number of sham businesses,
- fewer abuses in the area of self-employment,
- a simpler verification process for the tax authorities.
It is worth stressing that this obligation applies only to taxpayers who use KSeF. The e-invoicing system is gradually replacing the traditional flow of documents and will become the standard invoicing tool in Poland.
Consequences for business owners
For honest business owners, the implementation of KSeF and the requirement to issue an invoice every month should not be a significant burden. On the contrary - a uniform invoicing system makes bookkeeping easier, eliminates errors and streamlines administrative processes.
However, for entities that exploit legal loopholes or run a business in name only, the changes may mean having to restructure their activity or explain their actual business activity.
The new rules also place additional demands on accounting and HR departments, which must:
- monitor invoicing in real time,
- optimise processes so that the minimum requirements are always met,
- implement tools and procedures that comply with KSeF.
KSeF and tax security
One of the important aspects of KSeF is the improvement of tax security for business owners. An electronic invoicing system:
- reduces the risk of formal errors,
- increases the transparency of business transactions,
- makes it easier for the tax authorities to analyse data on a nationwide scale.
As a result, taxpayers who run their business diligently can have greater certainty that their settlements comply with the applicable regulations, and that any audits will be less burdensome.
How can Global Tax Partners help?
Changes such as the implementation of KSeF and the obligation to issue at least one invoice a month present business owners with new challenges. At Global Tax Partners, we support our clients with:
- adapting to KSeF correctly,
- optimising invoicing and settlement processes,
- analysing tax risks in their business,
- reviewing contracts and the model of cooperation with contractors.
Our advice combines practical knowledge with experience in serving companies both in Poland and on international markets. We help turn legislative changes into real benefits and safe business decisions.
Summary
The introduction of an obligation to issue at least one invoice a month in KSeF is a move intended to increase the transparency of business transactions and the effectiveness of the fight against sham self-employment. Although for many business owners it may mean having to adjust their processes, in the longer term the changes will help to bring order to the market and increase tax security.
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