- Individual PIP Interpretations – new tool for employers
- R&D tax relief for tax capital groups – favourable Supreme Administrative Court judgments do not end disputes with the tax authorities
- ESG reporting simplification – government begins work on implementing new rules
- VAT amendment – new risks for purchasers and simplified compliance for businesses
- Cloud services under increased scrutiny – growing withholding tax (WHT) risks
- KSeF also for services provided abroad? The Polish tax authorities clarify their position
- Look through approach in withholding tax – the dispute continues
- Individual PIP Interpretations – new tool for employers
As of 8th July 2026, employers may apply to the National Labour Inspectorate (PIP) for individual interpretations regarding their employment model. The new mechanism has already attracted employers’ interest – according to press reports, PIP has already received its first applications for individual interpretations.
The purpose of an individual interpretation is to help employers assess whether their chosen cooperation model, in particular the way work is organised, the level of supervision, and the place and working time arrangements may create a risk that a civil law contract could be reclassified as an employment relationship.
Submitting an application requires compliance with specific formal requirements. Among other things, the employer must provide a detailed description of the existing facts or the planned employment model, identify the labour law provisions requiring interpretation, present its own legal position and pay a fee of PLN 40. Importantly, an application may only be submitted if the employer is not subject to an ongoing PIP inspection.
Although an individual interpretation is not formally binding for the employer, compliance with it provides significant legal protection. In such a case, the competent authorities of the National Labour Inspectorate may not impose administrative sanctions or financial penalties within the scope covered by the interpretation.
This new instrument may prove particularly useful for employers using non-standard forms of cooperation, including B2B arrangements, civil law contracts and flexible working models. In many cases, obtaining an individual interpretation before implementing a particular employment model may reduce the risk of disputes with PIP and provide greater legal certainty as to the correctness of the adopted arrangement.
At the same time, the new regulations serve as a clear reminder for employers to review their existing employment models for compliance with Polish labour law. In many cases, conducting such a review in advance may significantly reduce the risk of the adopted arrangements being challenged during a PIP inspection.
If you are considering applying for an individual interpretation or would like to review your current employment model, the experts at Nexia Advicero will be happy to assist you.
- R&D tax relief for tax capital groups – favourable Supreme Administrative Court judgments do not end disputes with the tax authorities
The Polish Supreme Administrative Court (NSA) has once again confirmed a taxpayer-friendly approach to the application of the R&D tax relief by Polish tax capital groups (PGKs). In its judgments of 18th June 2026 (II FSK 1006/23) and 16th July 2026 (II FSK 1128/23), the NSA clearly held that, since a tax capital group constitutes a single CIT taxpayer, the entitlement to the R&D tax relief should also be assessed at the level of the entire group, rather than at the level of the individual companies comprising it.
However, this position remains inconsistent with the approach adopted by the Polish tax authorities. The Director of the National Revenue Information (KIS) continues to argue that the availability of the R&D tax relief should be assessed separately for each company within the tax capital group. As a consequence, the tax authorities deny the relief, among others, where the company carrying out the R&D activities reports a tax loss or where the costs of R&D projects are allocated between companies belonging to the same tax capital group.
The NSA rejected this approach, confirming that the provisions of the Polish CIT Act do not make the tax capital group’s entitlement to the R&D tax relief conditional upon the company incurring the qualifying costs generating taxable income. The Court also confirmed that settlements between companies forming part of the same tax capital group are internal in nature and, as a rule, do not constitute a reimbursement of costs that would prevent the group from benefiting from the relief.
Despite the increasingly well-established case law, taxpayers should continue to exercise caution. Current practice shows that the tax authorities do not always align their approach with the administrative courts’ judgments. As a result, tax capital groups claiming the R&D tax relief may still face disputes with the tax authorities.
If your tax capital group carries out R&D activities or plans to benefit from the R&D tax relief, it is worth reviewing the proposed approach in advance and assessing the related tax risks. The experts at Nexia Advicero will be pleased to analyse your situation, assist with preparing an application for an individual tax ruling, and represent you in proceedings before the tax authorities and administrative courts.
- ESG reporting simplification – government begins work on implementing new rules
The Polish Government has announced a draft amendment to the Accounting Act and certain other acts (UC155), aimed at implementing Directive (EU) 2026/470, which simplifies the sustainability reporting (ESG) framework. Although the draft legislation has not yet been published, it is already clear that the proposed changes are intended to significantly reduce the number of entities subject to ESG reporting obligations.
The most significant change will be a substantial narrowing of the scope of entities required to prepare ESG reports. According to the assumptions of the draft, the reporting obligation will apply only to entities and corporate groups employing more than 1,000 employees and generating net revenues exceeding PLN 1.9 billion. The draft also provides that financial holding companies may be exempt from preparing consolidated sustainability reports where the business models and operations of their subsidiaries are independent from one another.
The proposed legislation also introduces the so-called value chain cap, limiting the scope of information that reporting entities may request from smaller businesses operating within their value chain. In addition, the changes will affect third-country groups by increasing the thresholds triggering the obligation to publish sustainability reports and narrowing the scope of Polish subsidiaries and branches required to publish such reports. Furthermore, the draft introduces simplifications regarding the assurance of sustainability reporting, including for audit firms from third countries, and confirms that sustainability assurance engagements will be performed at the limited assurance level.
The draft is expected to be adopted by the Council of Ministers in the fourth quarter of 2026. If enacted, the proposed changes could significantly reduce ESG reporting obligations for many businesses. At the same time, companies should already assess whether the new rules will affect their reporting obligations and take appropriate steps to prepare for their implementation.
If you would like to assess how the proposed changes may affect your organisation or prepare for the new ESG reporting requirements, the experts at Nexia Advicero will be pleased to assist you.
- VAT amendment – new risks for purchasers and simplified compliance for businesses
The Polish Parliament has adopted a comprehensive amendment to the VAT Act, combining measures aimed at strengthening the VAT system with a number of simplifications for businesses. The amendment introduces, among other things, an extension of joint and several liability for VAT, new obligations for taxpayers using fiscal cash registers, and the removal of certain administrative requirements. The bill is currently under consideration by the Senate, and the majority of its provisions are expected to enter into force on 1st January 2027.
One of the most significant changes is the expansion of the rules on the purchaser’s joint and several liability for VAT unpaid by the supplier. Under the new rules, the mere use of the split payment mechanism will no longer automatically protect the purchaser from liability if the purchaser knew that the invoice had been issued by a non-existent entity, documented transactions that had not actually taken place, contained amounts inconsistent with reality, or confirmed transactions carried out under abusive arrangements.
The new rules will also apply to selected intangible services, including accounting, advertising, consultancy, IT, hosting, market research and employment-related services. Joint and several liability will apply where the value of the invoice exceeds PLN 15,000 or where the monthly net value of such services purchased from a single supplier exceeds PLN 50,000.
The amendment also introduces new grounds for refusing VAT registration, including the failure to appoint a tax representative where required or the inability to contact such representative. In addition, taxpayers using fiscal cash registers will be required to deregister devices that are no longer in use. Failure to comply with this obligation will be subject to a PLN 300 penalty.
At the same time, the amendment introduces a number of simplifications, including the removal of certain administrative obligations (such as filing the VAT-Z deregistration form in specific cases and submitting a separate inventory report), the possibility of verifying a taxpayer’s VAT status up to five years retrospectively, and new solutions for businesses engaged in international trade, including VAT warehouses and electronic customs clearance under the TAX FREE scheme.
The proposed changes mean that proper verification of business partners and regular reviews of internal VAT procedures will become even more important. Businesses should assess the impact of the new regulations on their VAT compliance processes and prepare for the upcoming changes well in advance.
If you would like to assess how the proposed VAT changes may affect your business or prepare your organisation for the new obligations, the experts at Nexia Advicero will be pleased to assist you.
- Cloud services under increased scrutiny – growing withholding tax (WHT) risks
An increasing number of individual tax rulings and recent administrative court judgments indicate a significantly more restrictive approach to the withholding tax (WHT) treatment of payments for cloud services and certain software licences. In practice, this means that payments which for years were generally regarded as falling outside the scope of WHT may now be treated as taxable payments.
Particular controversy surrounds the classification of cloud computing fees as remuneration for the use of industrial equipment. The Polish tax authorities increasingly argue that providing customers with computing power or data storage capacity constitutes granting the right to use technical infrastructure, which may trigger WHT obligations. This approach has also been reflected in recent case law, including the judgment of the Polish Supreme Administrative Court (NSA) of 7th March 2025 (case no. II FSK 1598/24).
Similar concerns have also arisen in relation to software licences. In practice, the tax authorities are increasingly challenging the classification of certain software used in business operations as end-user licences, which have traditionally been regarded as falling outside the scope of WHT.
For businesses, however, the most significant issue is the practical consequence of this approach. In many cases, foreign service providers include gross-up clauses in their contracts, requiring payment of the full contractual amount regardless of any Polish tax obligations. As a result, if the tax authorities challenge the WHT treatment, the economic burden of the tax may ultimately fall on the Polish customer, including with respect to payments made in previous years.
Businesses using cloud services or acquiring software from foreign providers should therefore review the nature of their payments, analyse the relevant contractual arrangements, collect appropriate supporting documentation (in particular, tax residence certificates), and assess whether their existing WHT procedures remain aligned with the current approach adopted by the Polish tax authorities.
If your organisation uses cloud services provided by foreign suppliers or purchases software licences from abroad, it is advisable to assess your withholding tax obligations before any potential tax audit. The experts at Nexia Advicero will be pleased to help you evaluate the tax risks, verify your WHT obligations and prepare documentation aimed at reducing the risk of future challenges by the tax authorities.
- KSeF also for services provided abroad? The Polish tax authorities clarify their position
In an individual tax ruling issued on 22nd June 2026 (reference no. 0112-KDIL1-3.4012.251.2026.2.ŁW), the Director of the Polish National Revenue Information (KIS) confirmed that the fact that a particular service is not subject to VAT in Poland does not automatically mean that there is no obligation to issue an invoice through the National e-Invoicing System (KSeF).
The case concerned a Polish company providing design services related to real estate located in Germany. Pursuant to Article 28e of the Polish VAT Act, the place of supply of such services is the location of the property, i.e. Germany. Consequently, the services are not subject to Polish VAT.
However, the Director of KIS concluded that this does not exempt a Polish taxpayer from complying with the Polish invoicing rules. In particular, the tax authority pointed out that the statutory exemptions from the obligation to issue structured invoices through KSeF do not include invoices documenting transactions whose place of supply is outside Poland. As a result, invoices documenting such services should, as a rule, be issued through KSeF and subsequently made available to the foreign customer in a manner agreed between the parties.
This ruling is relevant not only for services related to real estate, but also for other transactions where the place of taxation is outside Poland. Businesses providing services to foreign customers should therefore verify whether their current invoicing practices comply with the new KSeF requirements.
If your organisation provides services to foreign customers and you have any doubts regarding your KSeF obligations, we will be happy to help you verify the correct invoicing approach and ensure compliance with the new KSeF requirements.
- Look through approach in withholding tax – the dispute continues
Can a company applying withholding tax (WHT) to interest payments rely on the provisions of the double tax treaty applicable to the beneficial owner of the income, while disregarding an intermediary entity? This question has for years raised significant uncertainty in Polish withholding tax practice. The latest judgment of the Provincial Administrative Court (WSA) in Warsaw of 30th June 2026 (case no. III SA/Wa 785/26) demonstrates that the dispute over the application of the look-through approach (LTA) remains unresolved.
The case concerned a Polish company making interest payments to a UK company that was not the beneficial owner of the interest. The beneficial owners of the payments were lenders based in Luxembourg. The Polish company argued that, for WHT purposes, it should be entitled to apply the withholding tax rate provided for under the Poland-Luxembourg double tax treaty, disregarding the intermediary entity. The Director of the National Revenue Information (KIS) disagreed, taking the view that treaty benefits should be assessed solely with reference to the direct recipient of the payment.
The case clearly illustrates the lack of a consistent approach among the administrative courts. Initially, the WSA ruled in favour of the taxpayer. Subsequently, the Supreme Administrative Court (NSA) set aside that judgment, holding that the look-through approach has no explicit legal basis under Polish law, EU law or the applicable double tax treaties. Following the remittal of the case, the WSA once again annulled the tax ruling, this time focusing on determining who should actually be regarded as the taxpayer deriving the interest income.
Despite a number of administrative court judgments, there is still no uniform approach to the application of the look-through approach. As a result, applying treaty benefits in structures involving intermediary entities continues to involve significant tax risk.
Before making interest, dividend or royalty payments, businesses should carefully analyse the payment structure, the beneficial owner status of the recipient and the availability of withholding tax reliefs. The experts at Nexia Advicero wixll be pleased to help assess the tax risks, prepare the necessary documentation and develop a robust defence strategy to support your WHT position in the event of a dispute with the tax authorities.