The Sejm has passed an amendment to the Value Added Tax Act. Changes to Article 105a of the VAT Act are scheduled to take effect on October 1, 2026. The bill, prepared by the Ministry of Finance, primarily targets carousel fraud and the so-called "empty invoice" mechanism. However, for honest entrepreneurs, this means significantly tightening their customer verification procedures. The regulations drastically expand the scope of the buyer's joint and several liability for the seller's tax liabilities and limit the existing protection provided by the Split Payment Mechanism.
Extension of liability to intangible services
Until now, the institution of joint and several liability has been associated primarily with sensitive goods such as electronics, fuels, and steel, which are listed in Annex 15. As of October 1, 2026, Annex 16, covering intangible services, will be added to the Act. According to analyses by the National Revenue Administration and administrative court rulings, intangible services are one of the main tools for generating unauthorized VAT deductions. Joint and several liability will cover, among others, consulting, management, accounting, legal, advertising, market research, recruitment, as well as scientific research and development services. To eliminate interpretational uncertainties, these services have been linked to specific PKWiU classification symbols in Annex 16.
Liability for services specified in Annex 16 does not apply to minor transactions. The Act introduces two thresholds, one of which applies. The first is the single invoice threshold. Joint and several liability applies when the total invoice amount exceeds PLN 15,000 or its equivalent in foreign currency. The second is the monthly threshold for a single supplier. Liability applies to all transactions if the total net value of services specified in Annex 16 purchased from a single entity in a given month exceeds PLN 50,000.
It's worth analyzing this with an example. If in November 2026 we purchase advertising services for PLN 17,000 gross, the transaction exceeds PLN 15,000, and Article 105a of the VAT Act applies. In turn, if in December 2026 we purchase advertising services for PLN 13,000 gross, market research for PLN 25,000 gross, and recruitment services for PLN 40,000 gross from a single entity, then although none of the documents individually grossly exceeds the invoice threshold, the total net value of the services specified in Annex 16 for the month exceeds PLN 50,000. Consequently, all these transactions are subject to joint and several liability.
The end of absolute protection with MPP
Until now, the Split Payment Mechanism (SPM) provided an absolute protective shield for buyers, as payment to the VAT account excluded joint and several liability. However, the Ministry of Finance has noticed that dishonest players have learned to purge VAT accounts by using the funds collected there to pay subsequent fictitious invoices. Therefore, as of October 1, 2026, the protection provided by the SPM will be terminated if certain conditions are met.
This means that paying an invoice under the split payment procedure will not protect the taxpayer if the invoice was issued by a non-existent entity, the document provides amounts that are not consistent with reality or the invoice states activities that were not actually performed.
Market practices and price versus taxpayer risk
It's worth recalling that the foundation for the application of joint and several liability remains the requirement of knowledge. The buyer is liable for the seller's arrears if they knew or had reasonable grounds to believe that the VAT would not be remitted to the tax office. The amendment clearly emphasizes that reasonable grounds exist when the terms or circumstances of the transaction deviated from market standards or when the price for services was, without economic justification, lower than their market value.
What does the amendment mean in practice for companies?
The changes will apply to services for which the tax liability will arise from 1 October 2026. Entrepreneurs therefore have little time to adapt their internal procedures.
First and foremost, it's crucial to conduct an audit of intangible service providers and verify which advertising agencies, consulting firms, and business intelligence agencies the company collaborates with. Due diligence procedures will also be necessary, as a simple SPM transfer won't suffice when partnering with a fictitious entity. For intangible services, meticulous collection of hard evidence of their performance, such as reports, emails, acceptance protocols, and presentations, will be crucial, eliminating the possibility of dealing in empty invoices. Valuations should also be reviewed, as unnaturally high discounts on management or expert services may signal the possibility of joint and several liability to the tax authorities.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of August 10, 2026.
Author/Editor of the series:
