Poland removes additional PIT/CIT sanctions linked to VAT White List and split-payment errors

Summary

From 1 January 2027, businesses will no longer automatically lose the right to deduct an expense for PIT or CIT purposes merely because payment was made to a bank account outside Poland’s VAT White List or without applying mandatory split payment. [prawo.pl], [hlb-poland.global]
The change removes only the additional income-tax consequence. The VAT White List, mandatory split-payment obligations and related VAT risks, including potential joint and several liability and VAT sanctions, remain in place. [prawo.pl], [getsix.eu]
Businesses should therefore maintain their existing payment controls. An off-list account or omitted split payment can still create material VAT exposure even though the expense may remain deductible for PIT or CIT purposes. [hlb-poland.global], [firmove.pl]

Extended article

The President of Poland has signed legislation removing the additional PIT and CIT sanctions associated with certain breaches of Poland’s VAT payment controls. The reform concerns payments made to bank accounts that are not included in Poland’s VAT White List and payments made without the mandatory split-payment mechanism, commonly referred to as MPP. The relevant changes are expected to apply from 1 January 2027. [prawo.pl]

Under the existing rules, a business may be prevented from treating an expenditure as tax deductible where a transaction exceeding PLN 15,000 is paid to an active VAT taxpayer’s bank account that is not included in the official VAT White List. A corresponding PIT or CIT restriction can also apply when the purchaser fails to use mandatory split payment in circumstances where MPP is legally required. [prawo.pl], [hlb-poland.global]

The amendment removes these additional income-tax consequences. Consequently, payment to an account outside the VAT White List or failure to use MPP will no longer, by itself, cause the related expenditure to be excluded from tax-deductible costs. The expense must nevertheless continue to satisfy the ordinary conditions for deductibility under the applicable PIT or CIT rules. Restrictions relating to transactions that must be settled through a payment account also remain relevant. [getsix.eu], [hlb-poland.global]

VAT obligations and risks remain

The reform does not abolish the VAT White List or Poland’s mandatory split-payment mechanism. These remain separate components of the Polish VAT compliance framework. [prawo.pl], [firmove.pl]

In particular:

Payment to an account outside the VAT White List may still expose the purchaser to joint and several liability for the supplier’s VAT arrears.
The ZAW-NR notification may remain important as a means of protecting the purchaser against such liability.
Failure to apply mandatory split payment can still lead to consequences under the Polish VAT Act, including a possible additional VAT liability relating to the VAT amount attributable to the covered goods or services.
Removal of the PIT/CIT sanction does not relieve purchasers from determining whether the statutory conditions for mandatory split payment are met. [getsix.eu], [hlb-poland.global], [firmove.pl]

The distinction is therefore important: the amendment changes the income-tax treatment of a payment error, not the underlying VAT payment requirements.

Practical implications for businesses

Businesses should not discontinue VAT White List verification or split-payment controls as a result of the amendment. Accounts payable procedures should continue to:

Verify the supplier’s bank account against the VAT White List at the relevant payment date.
Retain evidence of the account verification.
Identify invoices falling within the mandatory split-payment rules.
Escalate payments to non-listed accounts before release.
Submit a ZAW-NR notification where appropriate.
Document the reason for any payment made outside the standard process.

The reform will reduce the risk of a single payment error producing consequences under both VAT and income-tax legislation. However, it does not make payments to non-listed accounts or payments bypassing mandatory split payment risk-free. [getsix.eu], [hlb-poland.global]

The government linked the removal of the additional PIT/CIT sanctions to the introduction of Poland’s National e-Invoicing System, KSeF, and the resulting improvement in transactional visibility. The same legislation also simplifies certain transfer-pricing reporting requirements, including the signing of TPR information and the information required from micro and small businesses. [prawo.pl]

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