Key Takeaways
- Poland will extend VAT joint and several liability rules to a broad range of intangible services from 1 January 2027, including IT, accounting, consulting, advertising, HR, hosting, and management services. [taxathand.com], [vatupdate.com]
- Purchasers may become jointly liable for unpaid VAT if they knew, or should reasonably have known, that the supplier would not remit VAT due on the transaction.
- The split payment mechanism (MPP) remains an important safeguard and can generally exclude joint liability when properly applied.
Extended Article
The Polish President has signed legislation amending the VAT Act that significantly broadens the scope of the purchaser’s joint and several liability regime. Effective 1 January 2027, the rules will no longer be limited primarily to selected goods and sectors but will also apply to a wide range of intangible services that tax authorities consider vulnerable to VAT fraud and abuse. [taxathand.com], [vatupdate.com]
Under the revised Article 105a of the VAT Act, a customer may be held jointly responsible for a supplier’s unpaid VAT if, at the time of purchase, the customer knew or had reasonable grounds to suspect that VAT connected with the transaction would not be paid to the tax authorities. Indicators may include transaction conditions that deviate from normal market practice, such as prices significantly below market value without a clear economic justification.
The new Annex 16 to the VAT Act will cover numerous service categories frequently used by both private organizations and public sector entities. These include software and software consulting services, website management and hosting, accounting services, business consulting and management services, architectural advisory services, advertising and market research, professional and technical services, employment-related services, and administrative support services.
The legislation introduces monetary thresholds intended to limit the scope of the regime. As a general rule, joint liability will not apply where the VAT invoice amount is below PLN 15,000. However, this protection disappears if the aggregate net value of services purchased from the same provider during a month exceeds PLN 50,000. Importantly, the legislator has retained the split payment mechanism (MPP) as a key protective measure. Where payment is made using MPP, joint liability is generally excluded, consistent with the current protection already available for purchases of goods. [atl-law.pl], [taxathand.com]
Why This Matters
The changes are particularly relevant for:
- Shared service centers and finance functions purchasing professional services.
- Public sector organizations and local governments.
- Businesses with significant spend on IT, consulting, accounting, marketing, recruitment, and outsourced administrative services.
- Procurement and accounts payable teams responsible for vendor due diligence.
The new regime increases the importance of supplier verification, transaction monitoring, and payment controls. Organizations should review whether their existing processes adequately identify services covered by Annex 16, monitor monthly spend thresholds, and ensure that MPP is used where appropriate.
Practical Actions Before 1 January 2027
Organizations should consider:
- Mapping purchased services against the Annex 16 classifications.
- Reviewing MPP policies and payment workflows.
- Monitoring cumulative monthly purchases from individual suppliers.
- Strengthening vendor onboarding and due diligence procedures.
- Updating VAT compliance and payment authorization processes.
- Assessing the implications for centralized VAT reporting and control frameworks.
Further Reading
- Deloitte Tax at Hand: Updated VAT reform bill published and other VAT updates. [taxathand.com]
- VAT Update: Ministry of Finance: Split Payment and Joint & Several Liability Reforms Are “Necessary”. [vatupdate.com]
- VGD Poland: Changes to joint and several VAT liability. [vgdpoland.pl]
Editorial note: While earlier draft legislation referred to an October 2026 implementation date, the newsletter article indicates that the final enacted rules will apply from 1 January 2027 to services for which the VAT chargeability event arises from that date onwards. [taxathand.com], [vgdpoland.pl}
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