Revolutionary VAT changes - what is the government planning for 2027?
Parliament is working on a package of tax changes that will cover more than 20 areas of business accounting. Most of the new regulations are due to take effect on 1 January 2027, although some provisions - including those on joint and several liability - will start to apply even earlier, from 1 October 2026.
Although some of the changes will bring the simplifications that were hoped for, the greatest controversy surrounds the extension of the mechanism of the buyer's joint and several liability for the service provider's tax arrears. In practice, this means that an honest business owner may be forced to pay someone else's VAT - even if they acted in good faith and paid the invoice correctly.
Below we discuss the most important aspects of the planned changes and suggest what steps business owners should take to protect their interests effectively in the new legal environment.
Joint and several liability for a counterparty's VAT - what is the risk?
Until now, the joint and several liability mechanism in VAT mainly applied to trade in goods. The new rules extend it to intangible services, which will be listed in the new Annex 16 to the VAT Act. The catalogue of services covered is broad and includes, among others:
- IT and software-related services,
- hosting services,
- bookkeeping and accounting services,
- business consulting and management,
- advertising and marketing services,
- market research,
- employment and recruitment services.
The mechanism is triggered in two cases: where a single invoice exceeds PLN 15,000 or where the total net value of services from one counterparty in a given month exceeds PLN 50,000. Of particular importance, once the monthly limit is exceeded, liability covers all services from that entity, including small invoices.
The condition for holding the buyer liable is proving that they "knew or had reasonable grounds to suspect" that the VAT would not reach the tax office. Tax experts are unanimous in describing this test as extremely vague and difficult to apply in practice.
Why should honest business owners be concerned?
The problem is that the assessment of the buyer's "due diligence" will be made by the tax authorities ex post - often many months or even years after the transaction. The tax authority will have full knowledge of the counterparty's irregularities, which the business owner objectively could not have had on the day the contract was concluded.
As tax experts rightly point out, a small company has no real means of verifying whether an advertising agency or an accounting firm diligently pays over its VAT. This is information to which the business owner simply has no access at all. As a result, the new rules create a situation in which running a normal business becomes subject to a risk that cannot be foreseen.
Equally worrying are the changes to the split payment mechanism. Until now, payment in this mode gave the buyer certainty of protection against joint and several liability. After the amendment, this guarantee will be significantly weakened - the protection will not apply if the authority decides that the buyer knew about an "abuse of law" on the part of the counterparty. Split payment therefore ceases to be an unconditional protective shield.
How can you effectively protect your company against the new risks?
Under the new legal framework, simply paying an invoice to an account on the VAT taxpayers' white list will not be sufficient protection. Business owners should implement comprehensive verification procedures that will prove due diligence in the event of an audit. These are the key actions we recommend to our clients:
- Verifying the counterparty before concluding a contract - checking their status in the VAT register, CEIDG/KRS and on the white list of taxpayers. The results of the verification should be archived.
- Analysing the terms of cooperation - paying attention to unusual circumstances of the transaction, in particular a price significantly different from the market price or a lack of economic justification for the purchase.
- Using the split payment mechanism - despite the weakened protection, split payment is still an important safeguard and should be used for transactions covered by the new Annex 16.
- Documenting the real nature of the transaction - collecting materials confirming that the service was actually performed (reports, correspondence, acceptance protocols).
- Developing an internal compliance procedure - setting out the rules for verifying counterparties and training the employees responsible for purchasing and accounting.
It is worth stressing that the burden of proof that the buyer knew about the counterparty's dishonesty lies, as a rule, with the tax authority. In practice, however, the business owner must be able to show that they took reasonable verification steps - which is why appropriate documentation is crucial.
VAT warehouse - a new institution for international trade
Alongside the controversial changes concerning joint and several liability, the act also introduces an entirely new solution - the VAT warehouse. This is a procedure aimed at entities involved in international trade, allowing goods to be physically stored without the need to account for tax immediately.
Placing products in a VAT warehouse and trading in them within the warehouse will be subject to a preferential zero rate. VAT will be accounted for only when the goods leave the warehouse. A single item may remain in the procedure for a maximum of 24 months.
This solution can significantly improve the cash flow of trading and logistics companies, eliminating the need to finance the tax while the goods are stored. However, using the procedure requires obtaining permission from the Polish Tax Office (urząd skarbowy), keeping detailed records and meeting the statutory conditions.
Don't wait for an audit - protect your company now
The new rules on joint and several liability for a counterparty's VAT fundamentally change the tax risk landscape for Polish business owners. Companies using accounting, consulting, advertising or IT services should prepare for the new reality as soon as possible - both in terms of verification procedures and contractual safeguards.
If you run a business and are concerned about the consequences of the upcoming changes - contact our firm. We will help you develop due diligence procedures, review your contracts with counterparties and implement solutions that minimise the risk of joint and several liability for other people's tax arrears. Act proactively - don't wait for the tax authority to knock on your door.
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