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 rules would stop VAT White List and mandatory split payment errors from automatically causing the loss of tax deductions for Personal Income Tax (PIT) or Corporate Income Tax (CIT) purposes in Poland. The VAT White List, mandatory split payment and related VAT risks would remain in force.

What would change from 1 January 2027?

The draft would remove two restrictions from Article 22p of the Personal Income Tax (PIT) Act and Article 15d of the Corporate Income Tax (CIT) Act. A payment to an account outside the VAT White List or failure to use mandatory split payment for a correctly marked invoice would no longer, by itself, exclude the expenditure from tax-deductible costs.

The restriction on payments made without using a payment account would remain. It applies to transactions covered by Article 19 of the Polish Entrepreneurs’ Law where the one-off transaction value exceeds PLN 15,000.

Would VAT White List checks still matter?

Yes. The draft does not abolish the VAT White List or joint and several liability for a supplier’s VAT arrears. Businesses should therefore continue to verify the counterparty’s VAT status and bank account before payment.

The ZAW-NR notification would also remain relevant. As a rule, it must be submitted within 7 days from the date the transfer is ordered. Its role for PIT/CIT would be reduced, but it may still protect the purchaser from joint and several VAT liability.

Would mandatory split payment remain in Poland?

Yes. Mandatory split payment continues to apply when all statutory conditions are met:

• the invoice total exceeds PLN 15,000,
• at least one item concerns goods or services listed in Annex 15 to the Polish VAT Act,
• both seller and purchaser are VAT taxpayers.

The absence of the wording “mechanizm podzielonej płatności” (“split payment mechanism”) on the invoice does not release the purchaser from the obligation if the statutory conditions are met.

What VAT consequences would remain?

Failure to use mandatory split payment may result in an additional tax liability equal to 30% of the VAT attributable to the covered goods or services. The additional liability is not imposed, among other cases, if the supplier has accounted for the full VAT amount shown on the invoice.

For businesses operating in Poland, the practical change is therefore a separation of risks: a payment error may cease to affect PIT/CIT deductibility while still creating VAT consequences.

What should businesses do?

Payment controls should be adjusted, not removed. Companies should continue to:

• check supplier accounts against the VAT White List,
• identify invoices subject to mandatory split payment,
• retain the ZAW-NR process,
• separate PIT/CIT risk from VAT risk.

The draft also contains transitional provisions. Under its current wording, existing rules would continue to apply to payments arising from invoices issued before the new provisions take effect. Until the legislation enters into force, businesses should continue to apply the current rules.

Read the full article here: Proposed changes to the VAT White List and split payment in Poland: will payment errors still affect tax-deductible costs?