Proposed changes to the VAT White List and split payment in Poland: will payment errors still affect tax-deductible costs?
From 1 January 2027, the draft would stop VAT White List and mandatory split payment errors from causing the loss of PIT/CIT tax deductions in Poland.
From 1 January 2027, payments to accounts outside the VAT White List would no longer, by themselves, cause the loss of PIT/CIT tax deductions.
Failure to use mandatory split payment would no longer trigger the PIT/CIT cost penalty in cases currently covered by that restriction.
A ZAW-NR notification concerning an off-list payment must generally be submitted within 7 days from the date the transfer is ordered.
Failure to use mandatory split payment may result in an additional liability equal to 30% of the VAT attributable to the covered goods or services.
The draft would retain the restriction on tax-deductible costs for payments made without a payment account in cases covered by Article 19 of the Entrepreneurs’ Law.
VAT White List checks would still matter
Removing the PIT/CIT penalty would not eliminate potential joint and several liability for VAT in Poland.
Mandatory split payment would remain in force
The proposed changes affect income tax consequences, not the obligation to use split payment where Polish VAT rules require it.
Payment risks would need separate assessment
A payment error may cease to affect PIT/CIT tax-deductible costs while still producing consequences under Polish VAT rules.
Existing rules remain applicable for now
The proposed changes remain draft legislation, so businesses should continue to apply the current rules until they enter into force.
The Polish government’s draft act amending the Personal Income Tax (PIT) Act and the Corporate Income Tax (CIT) Act proposes simplifying the rules for payments made to bank accounts outside the VAT White List and payments made without the mandatory split payment mechanism. It forms part of a broader deregulation package concerning taxpayer obligations in Poland.
The key proposed change is the removal of income tax penalties: a payment to an account outside the VAT White List or without the mandatory split payment mechanism would no longer, in itself, result in the loss of the right to treat the expenditure as a tax-deductible cost. The new rules are intended to apply from 1 January 2027.
This does not mean that the VAT White List or mandatory split payment would be abolished. Both mechanisms would remain part of the Polish VAT system, and an incorrect payment could still have VAT consequences and create tax liability. At present, these solutions remain part of draft legislation. Until the new provisions enter into force, businesses should continue to apply the existing rules.
For CFOs, chief accountants and employees responsible for payments, the key issue will therefore be to distinguish between two areas: the impact of the payment method on PIT and CIT tax-deductible costs and the risks that will continue to apply under VAT rules.
In this article:
What does a payment outside the VAT White List mean under the current rules in Poland?
Under the current rules, a payment to a bank account that is not included in the list of VAT taxpayers may, where the statutory conditions are met, affect whether the expenditure can be recognised as tax-deductible. These restrictions arise from Article 22p of the PIT Act and Article 15d of the CIT Act.
The provisions apply, among other things, to transactions covered by Article 19 of the Polish Entrepreneurs’ Law. If the supplier or service provider is an active VAT taxpayer, the part of the expenditure paid to an account outside the list may be excluded from tax-deductible costs. Article 19 covers transactions between businesses where the one-off transaction value exceeds PLN 15,000, regardless of the number of payments resulting from that transaction.
If the cost has already been recognised, an incorrect payment may currently require the taxpayer to reduce tax-deductible costs or, where such a reduction is not possible, increase taxable revenue. The legislation does, however, provide protective mechanisms, including ZAW-NR and, in certain circumstances, the use of the split payment mechanism.
How would tax-deductible costs change under the proposed Polish rules?
Once the proposed provisions enter into force, a payment to an account outside the VAT White List or a failure to use the mandatory split payment mechanism for an invoice correctly marked with the required Polish wording “mechanizm podzielonej płatności” (“split payment mechanism”) would no longer, by itself, constitute grounds for excluding the expenditure from tax-deductible costs.
These are the two restrictions that are intended to be removed from Article 22p of the PIT Act and Article 15d of the CIT Act.
Provided the expenditure meets the general requirements for recognition as a tax-deductible cost, an error in either of these areas would no longer lead to its exclusion from tax costs. The proposed wording would, however, retain the restriction relating to payments made without using a payment account.
| Area | Current rules | After the proposed change |
|---|---|---|
| Payment to an account outside the VAT White List | The relevant part of the expenditure may be excluded from PIT/CIT tax-deductible costs if no statutory safeguard is used | The fact that the account is outside the list would no longer, by itself, result in the loss of the PIT/CIT tax deduction |
| Failure to use mandatory split payment despite the invoice being correctly marked “mechanizm podzielonej płatności” | Possible exclusion of the expenditure from PIT/CIT tax-deductible costs, as well as separate VAT consequences | The PIT/CIT cost penalty would be removed, but the obligation to use mandatory split payment and the VAT consequences would remain |
| Payment without using a payment account | Restriction on tax-deductible costs in cases covered by Article 19 of the Entrepreneurs’ Law | The draft does not remove this restriction |
Poland · Proposed changes from 1 January 2027
Poland’s VAT White List and split payment: what would change, what would remain
Under the government bill amending the Polish PIT and CIT Acts, the income-tax sanction is set to go — but the VAT obligations behind it remain.
Situation
Income tax (PIT / CIT)
VAT and other consequences
Transfer to an account outside the VAT white list
No loss of tax deduction solely for this reason
Joint & several liability still possible
for the supplier’s VAT arrears on the transaction
Omission of mandatory split payment on a correctly marked invoice
No loss of tax deduction solely for this reason
Mandatory split payment obligation remains
additional liability of 30% of the VAT possible
ZAW-NR notification for an off-list payment
No longer needed to preserve PIT/CIT deductibility for payments covered by the new rules
May still protect against joint and several liability
generally filed within 7 days from the date the transfer is ordered
Payment made without a payment account
Cost limitation remains
for transactions under art. 19 of the Entrepreneurs’ Law
—
The bottom line
The draft would remove the PIT/CIT cost penalty — it would not abolish the Polish VAT White List or mandatory split payment.
What happens if I pay an account outside the VAT White List in Poland?
If the draft is enacted in its current form, payment to an account outside the list would no longer, in itself, deprive a business of the right to recognise the expenditure as a tax-deductible cost.
This does not mean that the supplier’s bank account number will become irrelevant. The draft does not remove the joint and several liability provided for under the Polish Tax Ordinance Act.
A purchaser making a payment to an account outside the VAT White List may therefore still, in certain circumstances, be jointly and severally liable with the supplier for the supplier’s VAT arrears attributable to the relevant supply of goods or services.
The change therefore concerns one layer of risk: income tax. VAT risk remains a separate issue.
Will businesses still need to check the VAT White List in Poland?
Yes. The draft does not provide for the abolition of the list of VAT taxpayers.
The VAT White List allows businesses, among other things, to verify a counterparty’s VAT status and bank accounts associated with its business activity. Checking the account will remain relevant because of joint and several liability and the need to maintain a controlled payment process.
In practice, a company should still determine:
- whether the counterparty is an active VAT taxpayer;
- whether the bank account provided for the transfer appears on the VAT White List;
- what action should be taken if the account is not included on the list.
Removing the CIT and PIT penalty would therefore not justify disabling this control in the company’s finance and accounting system. This is particularly important for businesses processing large volumes of suppliers and payments. A discrepancy between the bank account shown on an invoice and the account verified against the VAT White List should still trigger an additional control rather than being automatically ignored.
Will the ZAW-NR notification still be needed?
ZAW-NR would not lose its relevance completely. Its role from an income tax perspective would, however, change.
The Polish Ministry of Finance (MF) currently indicates that submitting ZAW-NR makes it possible to:
- recognise a payment made to an account outside the VAT White List as a tax-deductible cost for PIT and CIT purposes;
- avoid joint and several liability for the supplier’s VAT arrears associated with the transaction.
As a rule, the notification must be submitted within 7 days from the date the transfer is ordered. The draft would remove the tax-cost issue for payments covered by the new rules, but it does not eliminate joint and several VAT liability. ZAW-NR may therefore continue to perform a protective function and should not automatically be removed from company procedures. For finance teams, this would mean changing the purpose of the control rather than eliminating it altogether.
Will the split payment mechanism remain mandatory in Poland?
Yes. The draft does not abolish the mandatory split payment mechanism.
Mandatory split payment currently applies where all of the statutory conditions are met:
- the total amount due under the invoice exceeds PLN 15,000;
- at least one item on the invoice concerns goods or services listed in Annex 15 to the Polish VAT Act;
- both the seller and purchaser are VAT taxpayers.
Importantly, the absence of the required “mechanizm podzielonej płatności” wording on an invoice does not release the purchaser from the obligation to use the split payment mechanism if the statutory conditions are met. The draft merely provides that failure to use mandatory split payment would no longer additionally result in the exclusion of the expenditure from PIT or CIT tax-deductible costs in cases currently covered by that penalty.
What are the consequences of failing to use mandatory split payment in Poland?
Removing the tax-cost penalty does not mean that there would be no consequences. If the purchaser fails to use mandatory split payment, the head of the competent tax office or customs and tax office determines an additional tax liability equal to 30% of the VAT amount attributable to the goods or services covered by the mandatory split payment mechanism.
This additional liability is not imposed if the supplier or service provider has accounted for the full amount of VAT shown on the invoice. It is also not imposed on individuals who are liable for a fiscal offence or fiscal crime in respect of the same act.
The authors of the draft identify the continued VAT penalty as one of the arguments for removing the additional PIT/CIT tax-cost restriction. The practical conclusion is therefore clear: after the proposed changes take effect, failing to use mandatory split payment may cease to affect the tax deductibility of the expenditure, but it would still not constitute the correct method of settling an invoice where Polish law requires the split payment mechanism.
How would the proposed rules work in practice? Two examples
What happens when a supplier’s account is outside the VAT White List?
A company receives an invoice from an active VAT taxpayer. While preparing the payment, it discovers that the bank account shown on the invoice is not included on the VAT White List.
Under the current rules, the company must assess both the impact of the payment on the tax deductibility of the expense and the VAT risk. Once the proposed amendments enter into force, the fact that the bank account is outside the list would no longer, in itself, cause the loss of the PIT or CIT deduction.
The company would still need to assess joint and several liability and whether a ZAW-NR notification should be submitted. The bank account check would therefore remain necessary, even though its significance for income tax purposes would be reduced.
What happens when an invoice is subject to mandatory split payment?
A company receives an invoice that meets the conditions for mandatory split payment and is correctly marked “mechanizm podzielonej płatności”, but the payment is made by ordinary bank transfer.
Currently, such a payment may result in the expenditure being excluded from PIT or CIT tax-deductible costs. Under the proposed amendment, this tax-cost penalty would be removed. However, neither the obligation to use the split payment mechanism nor the VAT consequences of failing to do so would disappear. The invoice should therefore still be correctly identified during the accounting process and paid using the appropriate payment method.
Both examples illustrate the same principle: the draft limits the income tax consequences but does not remove the need to control how payments are made.
Would the tax penalty for cash payments also disappear?
No. The draft does not abolish all restrictions relating to the method of payment. The rule under which a taxpayer cannot recognise expenditure as a tax-deductible cost to the extent that a payment relating to a transaction covered by Article 19 of the Entrepreneurs’ Law was made without using a payment account is intended to remain in force.
It would therefore be incorrect to introduce a general rule into company procedures stating that the method of payment will no longer matter for tax-deductible costs.
The draft specifically removes the penalties relating to the VAT White List and mandatory split payment, not all restrictions connected with payments.
What should companies change in their accounting and payment procedures?
The main task is not to remove controls but to assign them to the correct areas of risk.
Poland · Payment process
Before you make a transfer in Poland: a checklist for finance teams
The income-tax sanction may be removed, but these checks stay in the payment process.
Start · Invoice to pay
01
Is the contractor an active VAT taxpayer?
Confirm the supplier’s VAT status before preparing the payment.
02
Is the account on the VAT white list?
Yes → proceed. No → assess joint & several liability and consider filing a ZAW-NR notification for an off-list payment (as a rule within 7 days of ordering the transfer).
03
Is the invoice subject to mandatory split payment?
Yes → pay using the split-payment mechanism. No → continue with the applicable payment checks.
Mandatory split payment applies when all of these conditions are met:
- Total amount due under the invoice exceeds PLN 15,000
- At least one item is listed in Annex 15 to the Polish VAT Act
- Both seller and buyer are VAT taxpayers
04
Keep controlling the payment method after the proposed changes
Removing the income-tax sanction does not remove the MPP obligation or the joint & several liability risk in VAT.
1. Keep the VAT White List check
The supplier’s bank account should still be verified before payment. A result showing that an account is outside the VAT White List should trigger an escalation or clarification procedure rather than automatic approval of the transfer.
2. Continue identifying invoices subject to mandatory split payment
The accounting process should continue to determine whether an invoice meets the statutory conditions for the mandatory split payment mechanism. This assessment should not be based solely on whether the seller has included the relevant wording on the invoice.
3. Retain the ZAW-NR process
The company should clearly define who assesses whether a notification is required, who is responsible for submitting it and who monitors the deadline.
4. Separate CIT/PIT risk from VAT risk
After the amendments, the same error may no longer affect the tax deductibility of an expense but may still have VAT consequences. Payment instructions should clearly reflect this distinction.
5. Do not change the rules before the legislation enters into force
The solutions discussed remain draft legislation. Until the new provisions enter into force, businesses should continue to apply the existing restrictions.
For companies using accounting services in Poland it is worth confirming whether the scope of the service includes supplier bank account checks, identification of mandatory split payment and handling of ZAW-NR notifications. This is particularly important where payment preparation, bookkeeping and tax oversight are handled by different individuals or teams.
What happens to payments around the date the new rules enter into force?
The draft also contains transitional provisions. Under its current wording, the existing rules would continue to apply to payments arising from invoices issued before the new provisions concerning the penalties take effect. For a certain period, businesses may therefore have payments assessed under the existing rules and others assessed under the new rules.
At this stage, however, there is no need to redesign procedures around a detailed transitional scenario. The final arrangements should be implemented on the basis of the legislation as enacted and published.
Why is the Polish government proposing these changes?
The explanatory memorandum to the draft refers, among other things, to the development of digital tools used by the Polish tax administration, including the National e-Invoicing System (KSeF), and to the need to reduce additional consequences under income tax legislation.
For mandatory split payment, the authors of the draft emphasise that the Polish VAT Act already provides for a penalty where the mandatory split payment mechanism is not used. In relation to the VAT White List, joint and several VAT liability is intended to remain in place. The draft therefore does not remove the mechanisms designed to safeguard VAT settlements. Its primary effect is to reduce the situations in which a payment-related error also affects PIT or CIT.
What would the change mean for CFOs and chief accountants in Poland?
The most significant practical change would be a reduction in the risk that a technical payment error increases the taxable base even though the expenditure is economically connected with the company’s business activity.
This does not create a general rule allowing companies to pay any bank account.
A company should still know:
- whether the counterparty’s account appears on the VAT White List;
- whether the invoice is subject to mandatory split payment;
- whether a ZAW-NR notification is required;
- who is responsible for resolving an exception before payment is made;
- which VAT consequences remain applicable.
This is particularly important for foreign-owned companies operating in Poland where payments may be prepared or approved outside the Polish accounting function. Global payment procedures should therefore continue to reflect the Polish VAT White List and mandatory split payment rules, even if their impact on CIT is reduced.
What is the bottom line for PIT/CIT, the VAT White List and split payment in Poland?
The proposed amendment is intended to remove a significant income tax penalty. A payment to an account outside the VAT White List or failure to use mandatory split payment would no longer, by itself, result in the loss of the tax deduction.
This would not, however, amount to the abolition of payment-related obligations. The VAT White List would remain relevant for joint and several liability, ZAW-NR may continue to provide protection, and the mandatory split payment mechanism would remain part of the Polish VAT system.
For businesses, the appropriate response is therefore not to abandon controls but to adjust procedures to the new division of risk between income tax and VAT.
Until the new regulations enter into force, the existing rules remain applicable. Companies that want to review their current payment processes or prepare for the proposed amendments can use tax advisory services in Poland and accounting services in Poland provided by getsix®.
This article was written by the getsix® Editorial Teamgetsix® provides accounting, tax advisory, HR and payroll, and business consulting services, supporting companies operating in Poland. The getsix® Editorial Team prepares practical information that makes Polish accounting, tax, and HR and payroll matters easier to understand.
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