1. ESG reporting deferred
In March 2026, the Act of 27 February 2026 amending the Accounting Act entered into force, which purpose is to implement into Polish law the sustainability simplification package proposed by the European Commission.
Key changes
The transitional provisions introduce a reporting exemption for financial years beginning between 1 January 2025 and 31 December 2026. In practice, this means that the exemption may cover two financial years.
Entities will be exempt from preparing sustainability reports if, in both the current and preceding financial year, they did not exceed the following thresholds:
- 1,000 employees on an average annual full-time equivalent (FTE) basis;
- PLN 1.9 billion in net revenue from the sale of goods and products.
The exemption is available not only to public-interest entities but also to parent companies of capital groups. Importantly, it is optional and may be applied at the discretion of the management body of the entity or parent undertaking concerned.
This exemption is intended as a temporary measure. The sustainability reporting obligation has been postponed until the 2027 financial year, when it will apply not only to the largest public-interest entities but also to other large undertakings and parent companies heading large groups. From the 2028 financial year onwards, the requirement will also extend to listed SMEs (excluding micro-enterprises) as well as certain domestic subsidiaries and branches whose ultimate parent undertaking or standalone entity is established outside the European Economic Area.
It should be noted that, as was the case for entities in the so-called ‘first wave, EU institutions may introduce further reporting relief measures over time. We encourage you to follow the Nexia Advicero blog, where we regularly provide updates on the most significant developments.
2. Real estate taxation of biogas plants
On 10 March 2026, the Ministry of Finance and Economy issued an official position regarding the taxation of agricultural biogas plants forming part of agricultural holdings. The request was submitted by the National Council of Agricultural Chambers, which advocated a complete exemption of agricultural biogas plants from real estate tax.
As of 1 January 2025, a preferential real estate tax regime was introduced for biogas plants (including agricultural biogas plants) and other renewable energy infrastructure. Under Act of 12 January 1991 on Local Taxes and Fees, wind farms, photovoltaic installations, biogas plants and agricultural biogas plants constitute a structure only to the extent of their construction components and insofar as they are not classified as buildings.
Under the regulations in force until the end of 2024, biogas plants used for business purposes were taxed in their entirety, including structural elements, technical components and auxiliary installations required for operation. The current rules limit taxation of renewable energy structures, including agricultural biogas plants, exclusively to their construction elements, excluding technical equipment and installations necessary for their intended use.
The Ministry further clarified that, in the case of agricultural biogas micro-installations with an annual production capacity of up to 200,000 m³ of agricultural biogas, the generation and sale of electricity, heat or agricultural biogas constitutes agricultural production activity and is therefore not subject to the provisions of the Entrepreneurs’ Law.
By contrast, biogas plants and agricultural biogas plants that do not qualify as micro-installations are treated differently. The production of agricultural biogas, electricity generated from agricultural biogas and biomethane derived from agricultural biogas is classified as a regulated business activity requiring registration in the register of agricultural biogas producers. Consequently, such facilities remain subject to real estate tax, but only with respect to their construction components, at a rate of up to 2% of their value.
It was also emphasized that municipalities retain the authority to introduce more favourable tax treatment at the local level. Municipal councils may reduce applicable real estate tax rates by resolution and may establish additional property tax exemptions.
3. Important Supreme Administrative Court judgment on excise duty rates for mild hybrid vehicles
On 23 October 2025, the Supreme Administrative Court (NSA) issued a significant judgment resolving a long-standing dispute between tax authorities and owners of so-called mild hybrid vehicles, i.e. cars equipped with both an internal combustion engine and an electric motor that supports, but cannot independently propel, the vehicle.
The Polish tax authorities have consistently argued that hybrid vehicles qualify for reduced excise duty rates only if they are equipped with at least two alternative propulsion sources, namely an internal combustion engine and an electric motor, capable of operating independently of one another. According to this interpretation, mild hybrids do not meet the statutory definition and therefore cannot benefit from the reduced excise duty rates of 1.55% or 9.3% (depending on engine displacement) applicable upon importation, intra-EU acquisition or first sale of previously unregistered passenger vehicles.
Taxpayers, however, maintained that the Excise Duty Act does not require an electric motor to be capable of independently starting or accelerating a vehicle. Article 105(1a)(a) merely refers to a “hybrid combustion-electric propulsion system in which electricity is not charged from an external source”, without imposing any requirement regarding the independent performance of the electric motor.
Court’s position
In judgment I FSK 2037/24, the Court sided with taxpayers, ruling that reduced excise duty rates do not require both propulsion systems to operate on an equal footing; it is sufficient that the electric motor supports the operation of the internal combustion engine.
The Court also considered the legislator’s intention, noting that the preferential treatment was designed to promote technologies contributing to lower emissions and reduced fuel consumption. This judgment provides a strong basis for taxpayers engaged in disputes with tax authorities and may also support applications for a Binding Excise Information (WIA) ruling confirming the vehicle’s classification for excise duty purposes.
4. Unfavourable change to the thermomodernisation tax relief
In an amending interpretation dated 5 September 2025 (reference: DOP3.8222.117.2025.CNRU), the Head of the National Revenue Administration (KAS) overturned a taxpayer-friendly individual ruling issued by the Director of the National Tax Information Service (KIS) in 2021 concerning the thermomodernisation tax relief for air-conditioning systems equipped with a heating function.
In the individual ruling of 11 May 2021 (reference: 0113-KDIPT2-2.4011.925.2020.6.AKU), the Director of KIS confirmed that the purchase and installation of air-conditioning units with a heating function qualified as eligible expenditure under the thermomodernisation relief available to individual
Following several years of favourable tax authority practice and the publication of tax explanations on 30 June 2025 regarding thermomodernisation support measures in PIT, the Head of KAS concluded that such expenditure does not fall within the statutory catalogue of deductible devices.
The amending interpretation stresses that air-conditioning systems with a heating function are not expressly listed in the regulation defining eligible thermomodernisation materials, equipment and services and therefore cannot benefit from the relief.
The thermomodernisation relief allows taxpayers to deduct documented expenditure, up to a maximum of PLN 53,000, incurred on materials, equipment and services connected with a thermomodernisation project completed within three years, provided such expenditure is included in the statutory catalogue.
Although the relief remains widely used, this unexpected shift in the tax authorities’ approach diminishes its attractiveness. As a result, some taxpayers may be required to repay the previously claimed tax benefit. However, taxpayers holding an individual tax ruling in this respect remain protected against default interest on any resulting tax arrears.
5. The new CBAM rules effective from 2026
The Carbon Border Adjustment Mechanism (CBAM) complements the EU Emissions Trading System (EU ETS) and aims to ensure a level playing field between producers operating within and outside the European Union. CBAM applies to carbon-intensive sectors, including cement, aluminium, fertilisers, electricity, hydrogen, iron and steel.
The transitional period ended on 31 December 2025, and the definitive CBAM regime applies from 2026 onwards.
Key changes effective from 2026
- A new exemption has been introduced for importers bringing CBAM goods with a total net mass not exceeding 50 tonnes in a calendar year. This exemption does not apply to hydrogen or electricity imports. At the same time, the previous exemption for consignments with an intrinsic value of no more than EUR 150 has been abolished.
- Importers established in EU Member States are required to obtain authorised CBAM declarant status before importing CBAM goods into the EU customs territory. Nevertheless, imports may still take place without such status provided that the application is submitted no later than 31 March 2026.
- The amended rules provide that EU importers of CBAM goods will only be able to purchase CBAM certificates from 1 February 2027. Consequently, certificates relating to imports made in 2026 will be acquired in the following year.
- The submission of CBAM declarations may be delegated to a third party acting on behalf of the authorised CBAM declarant (indirect representative).
- Quarterly reporting has been replaced by annual CBAM declarations. Obligated entities must file their annual declarations by 30 September each year in respect of the preceding calendar year. In addition, 1 November has been designated as the date on which certificates that have neither been surrendered nor submitted for repurchase will be cancelled.
If you would like to understand how these developments may affect your business operations, tax position or compliance obligations, Nexia Advicero’s specialists would be pleased to assist. Please do not hesitate to contact us.