The National e-Invoice System (KSeF) has created administrative burdens for Polish municipalities, requiring manual determination of proper invoice recipients.
The New KSeF Reality
The implementation of the mandatory Krajowy System e-Faktur (KSeF) has confirmed local governments’ greatest fears regarding VAT centralization.
Before the system’s introduction, VAT centralization was not a significant problem for municipalities and budgetary units.
Administrative Burden Increases
Under KSeF, all invoices now flow directly to the municipality because they contain its tax identification number.
Municipal employees must either manually or through IT systems determine who is the proper recipient of each invoice document.
This process ensures the correct entity can pay for purchased goods or services and account for them in their financial settlements.
Regulatory Requirements
These additional administrative procedures are mandated by regulations on public financial discipline.
