The introduction of the National e-Invoice System (KSeF) represents one of the most significant challenges for group companies in recent years. Although the KSeF is intended to simplify the invoicing process and reduce tax abuse, it also has a significant impact on transfer pricing, particularly with regard to the documentation and settlement of TP adjustments.
The transparency, automation and full visibility of invoices provided to the tax authorities mean that the current approach to TP adjustments will have to change in terms of both technology and organisation.
KSeF: a digital revolution in invoicing
The KSeF is a centralised electronic system for issuing, receiving and storing structured invoices.
From the moment of its implementation, all invoices, including corrective ones, will be issued in the standardised FA(3) format and sent to the tax authorities in real time. This means that transfer pricing adjustments documented by a corrective invoice will immediately be visible to the tax authorities.
This is particularly important for groups of companies where profitability adjustments or adjustments resulting from internal transfer pricing policies are often made.
The introduction of KSeF means that, if they are documented with invoices, such adjustments become immediately visible to the tax authorities. This has two consequences. Firstly, it becomes easier for the tax authorities to analyse whether the adjustments are justified. Secondly, companies must ensure the quality and consistency of their data, as any errors, inconsistencies, or lack of connection between the adjustment and the original transaction can be quickly detected.
TP adjustments in KSeF: documentation and operational challenges
In practice, TP adjustments are often only made at the end of the year in order to adjust margins or align settlements with established benchmarks.
In the new reality, e-invoices will need to be supported by a corrective invoice and contain a link to the original invoice, as well as a complete set of technical data.
For companies carrying out hundreds or thousands of transactions per month, manual assignment of corrections to individual invoices will be impossible. This means that they will need to implement advanced mechanisms for automatic invoice mapping, ERP system modifications or the integration of TP data with financial and accounting systems.
Inconsistencies between invoices, TP documentation, and KSeF data may result in adjustments being questioned by the tax authorities and disputes arising over the accuracy of intra-group settlements.
KSeF and the increased risk of transfer pricing inspections
Thanks to full access to invoices in the KSeF system, as well as the ability to integrate this data with other analytical tools such as JPK CIT, TPR reports and VAT records, the tax authorities have completely new capabilities for analysing and inspecting transactions between related entities.
The administration may be particularly interested in cases of transfer pricing adjustments that are not clearly linked to invoices documented in the KSeF system, as well as situations where downward adjustments do not affect previously posted transactions.
Inconsistencies between adjustments visible in the KSeF and information contained in TPR reports or transfer pricing documentation increase the risk. High-value adjustments, or adjustments relating to foreign entities, may also attract attention.
Such cases may trigger automatic alerts in the tax authorities’ analytical systems, leading to more frequent and detailed transfer pricing inspections.
Summary
Digital transformation in taxation is becoming a reality, and the KSeF system is its most visible symbol. For groups of companies and related entities, this is not only a technological breakthrough, but above all a change in the approach to documenting transfer pricing adjustments.
In an era of full transparency, only entities that adapt their processes, systems and procedures in time will be able to avoid tax risks effectively and ensure full compliance with the new obligations.
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