Poland Clarifies Permanent Establishment Rules for KSeF E-Invoicing

Poland has published official tax clarifications defining how to determine a permanent place of establishment, known as SMPD, for the purpose of issuing structured e-invoices via KSeF.

On 28 January 2026, the Polish Ministry of Finance issued guidance ahead of the mandatory launch of KSeF on 1 February 2026.

When Does the KSeF Obligation Not Apply?

The obligation to issue e-invoices through KSeF does not apply to businesses that:

• Do not have a registered office or permanent establishment in Poland
• Have an SMPD in Poland, but that SMPD does not participate in the supply of goods or services being invoiced

This clarification is particularly important for foreign entities operating in Poland with limited functional presence.

Criteria for Determining SMPD

The Ministry based its interpretation on EU Council Implementing Regulation 282/2011 and relevant case law from the Court of Justice of the European Union.

An SMPD exists only when all of the following conditions are fulfilled:

• Personnel and technical resources are located in Poland
• Those resources form a structure capable of providing services
• The place demonstrates sufficient permanence to support ongoing activity

If one of these elements is missing, a permanent establishment is not considered to exist for VAT purposes.

Additional Clarifications

The Ministry also addressed:

• Situations where an SMPD exists but does not participate in a specific transaction
• The procedure for determining whether a purchaser has an SMPD in Poland

With the KSeF mandate now in force, these clarifications provide greater certainty for cross-border businesses operating in Poland.
Official clarification can be accessed here.