From 1 January 2027, the risk associated with VAT not settled by a service provider may, in certain cases, also extend to the purchaser of the service. The change will be particularly relevant for businesses relying extensively on subcontractors and B2B service providers.
Joint and several liability will cover new categories of services
The amendment to the Polish VAT Act of 4 September 2026, adopted by the Sejm after consideration of the Senate’s amendments, extends joint and several liability for VAT unpaid by a service provider to purchasers of services listed in the new Annex 16.
The main part of the amendment is due to apply from 1 January 2027.
The liability is intended to apply to invoices exceeding PLN 15,000. Below that threshold, it may still apply where the total net value of Annex 16 services purchased from one service provider in a given month exceeds PLN 50,000.
The catalogue includes commonly purchased intangible services
The new Annex 16 covers services frequently purchased by businesses.
These include, among others, IT and hosting services, accounting services, management consulting, R&D, advertising, market research and recruitment services.
In practice, this means that the new rules may affect not only exceptional transactions, but also routine purchases made by finance, HR, marketing and IT departments.
Split payment may exclude the purchaser’s liability
The key safeguard provided for under the new rules is the split payment mechanism (MPP).
Payment using MPP will generally release the purchaser from joint and several liability for VAT not paid by the service provider.
This means that the risk will depend not only on the choice of service provider, but also on how the payment is made.
The payment process may be the main risk area
A standard bank transfer to a service provider that subsequently fails to settle VAT may allow the tax authority to pursue the unpaid tax from the purchaser as well.
Businesses should therefore review whether their accounting and payment systems can identify service providers falling within the new catalogue and route relevant payments through MPP.
Correct service classification alone may not be enough if the payment process itself is not properly configured.
Due diligence remains important
In addition to MPP, businesses should consider implementing or expanding due diligence procedures for service providers.
Such procedures may include verifying the supplier’s VAT status, documenting the actual performance of services and including appropriate contractual clauses concerning correct VAT settlement.
However, due diligence does not replace MPP as the statutory basis for excluding joint and several liability. It may nevertheless strengthen documentation and reduce the risk of dealing with unreliable suppliers.
Service provider portfolios should be reviewed before the end of 2026
For finance and procurement teams, a practical review of suppliers before the new rules take effect will be important.
In particular, businesses should check:
The key conclusion is straightforward: from 1 January 2027, VAT unpaid by a service provider may in certain cases also become the purchaser’s liability, and correct use of MPP will be the primary safeguard.
Feel free to contact us if your organisation requires support in preparing its payment procedures and supplier verification processes for the new rules.
We support businesses in identifying services covered by the new Annex 16, analysing the applicable liability thresholds and adapting payment processes to the split payment mechanism. We also help structure due diligence procedures for service providers.
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