Poland: Income Tax Sanctions Linked to the VAT White List and Split Payment Are Repealed from 1 January 2027, and Transfer Pricing Reporting Is Simplified
On 15 October 2026 the President of Poland signed the Act of 18 September 2026 amending the Personal Income Tax (PIT) Act and the Corporate Income Tax (CIT) Act (Sejm print no. 2837). The Act removes, from 1 January 2027, the income tax sanctions that deny a cost deduction or create taxable income when a payment above PLN 15,000 goes to an account outside the VAT White List or skips mandatory split payment. It also simplifies the transfer pricing information return (TPR). The VAT-side exposure linked to these payments is not removed.
Background
The Act is part of the government's deregulation programme (the SprawdzaMY initiative), and its main goal is to remove the income tax sanctions linked to the VAT White List and the split payment mechanism. The summary below is based on the Act's explanatory memorandum. The start date is deliberately tied to the introduction of penalties for invoicing outside KSeF, which also begin on 1 January 2027.
The Legislative Change
1. Removal of the White List and split payment income tax sanctions (effective 1 January 2027)
Current rules. A business cannot treat an expense as a tax-deductible cost, in the portion covered by the payment, where the transaction exceeds PLN 15,000 and was invoiced by an active VAT payer, if:
- the payment was made by bank transfer to an account that was not on the VAT White List on the day the transfer was ordered, or
- the invoice was marked "mechanizm podzielonej płatności" but was paid without using the split payment mechanism.
A parallel rule applies to factoring and similar arrangements. A taxpayer that collects receivables on a supplier's behalf and passes them on to an account outside the White List, or without using a payment account, must currently recognize taxable income equal to the amount paid.
What changes. The following provisions are repealed from 1 January 2027:
| Instrument | Provisions repealed from 1 January 2027 |
|---|---|
| PIT Act | Article 14(2h)–(2i) and Article 22p(1)–(2) and (4) |
| CIT Act | Article 12(4i)–(4j) and Article 15d(1)–(2) and (4) |
From that date, paying to an account outside the White List or skipping split payment will no longer, on its own, cost the payer the deduction or create extra income. The factoring-related income rule is repealed as well.
What stays.
- Joint and several liability: a payer that pays to an account outside the White List can still be jointly and severally liable with the supplier for the supplier's VAT arrears, in proportion to the VAT on that supply (Article 117ba of the Tax Ordinance).
- VAT sanction for split payment: where split payment is mandatory and is skipped, the tax office can still impose an additional VAT liability of 30% of the VAT shown on the invoice (Article 108a(7) of the VAT Act). This sanction does not apply to individuals who are liable for a fiscal offence for the same act, or where the supplier has settled the full VAT on the invoice.
- Cash payment limit: the PLN 15,000 cash payment limit for tax-deductible costs is not affected.
Timing and transition. Under the transitional rules, the existing sanctions continue to apply after 31 December 2026 to invoices issued before 1 January 2027. Invoices issued in 2026 and paid in 2027 therefore remain under the old rules.
2. Transfer pricing changes
- TPR signing is simplified. The TPR can be signed under the general rules for signing tax returns, including by a proxy holding a UPL-1 power of attorney. It no longer has to be signed only by the head of the entity or an authorized professional.
- Local file statement abolished. The statement that local transfer pricing documentation reflects the facts and that prices are set at arm's length is abolished. The arm's length requirement and the tax authorities' audit powers are unchanged.
- Micro and small entrepreneurs no longer have to report the general financial indicators in the TPR.
- TPR corrections: correcting a TPR under the Tax Ordinance is confirmed in the law.
- Domestic adjustments: domestic transfer pricing adjustments (compensating adjustments) between Polish-resident related parties are confirmed as allowed.
These TPR changes apply to TPR filings for tax years starting after 31 December 2025, so they first apply to the 2026 TPR filed in 2027. Taxpayers that file a 2026 TPR under the old rules before the Act takes effect will not need to refile. The transfer pricing provisions take effect 14 days after the Act is published. The Minister of Finance is to issue new TPR regulations by 30 June 2027.
Scope
The White List and split payment changes affect PIT and CIT taxpayers that buy from active VAT payers, including payers of transactions above PLN 15,000 and taxpayers that collect receivables for suppliers in factoring-type arrangements. The transfer pricing changes affect entities that file a TPR, with a specific relief for micro and small entrepreneurs on the general financial indicators.
Timeline
| Date | Event |
|---|---|
| 18 September 2026 | Date of the Act amending the PIT and CIT Acts (Sejm print no. 2837) |
| 15 October 2026 | President of Poland signs the Act |
| 14 days after publication | Transfer pricing provisions take effect (publication date not stated in the material we received) |
| 31 December 2026 | Last day on which the existing White List and split payment income tax sanctions apply to newly issued invoices |
| 1 January 2027 | Repeal of the PIT and CIT sanctions takes effect; the same date as the start of KSeF penalties |
| 2027 | First application of the simplified TPR rules, to the 2026 TPR filed in 2027 |
| 30 June 2027 | Deadline for the Minister of Finance to issue new TPR regulations |
Businesses Affected
Polish companies and permanent establishments of foreign groups that pay supplier invoices above PLN 15,000; accounts payable and treasury functions that run White List checks and split payment routing; factoring and collection businesses; and groups with Polish related-party transactions that file a TPR, including those that sign the TPR through a proxy.
Required Actions
- Keep checking the White List and applying split payment where it is required. The income tax sanction goes, but the VAT exposure and joint liability remain.
- Review payments of 2026 invoices that will be made after year-end, because invoices issued before 1 January 2027 remain under the old income tax rules.
- Review the controls in SAP payment runs, supplier bank account validation and split payment flagging so that VAT-side risks continue to be managed after the income tax sanction is removed.
- Plan the 2026 TPR on the simplified rules: signing arrangements, power of attorney (UPL-1) where used, and the removal of the local file statement.
- Assess whether domestic compensating adjustments between Polish-resident related parties are relevant for your intra-group pricing.
Practical Implications
The repeal reduces income tax exposure on supplier payments, but it does not make White List and split payment discipline optional. Joint and several liability for the supplier's VAT arrears and the 30% additional VAT liability for skipped mandatory split payment continue to apply, so the commercial case for the controls remains. Because the start date coincides with KSeF penalties from 1 January 2027, finance teams should plan invoicing and payment controls for that date together. On transfer pricing, the changes lower the administrative burden of signing and completing the TPR without changing the arm's length requirement or audit powers.
Expected Next Steps
- Publication of the Act, from which the 14-day period for the transfer pricing provisions runs.
- New TPR regulations from the Minister of Finance, due by 30 June 2027.
- Possible guidance from the tax authorities on the transitional rule for invoices issued in 2026 and paid in 2027.
How Can KGT Support You?
KGT supports multinationals with SAP-integrated e-invoicing add-ons and SAP Document and Reporting Compliance (DRC) services. We can help you review White List validation, split payment determination and payment-run controls in SAP, align them with the KSeF start on 1 January 2027, and coordinate with your local advisers on the TPR changes. Contact KGT to discuss your readiness.
This update is for information only and is not tax or legal advice. Please consult your tax adviser before acting on it.
