VAT in the Digital Age: European Commission 2026 Work Programme

During the session held on 20-21 May 2026, the Upper House of the Polish Parliament passed, unamended, the following statutes:

• The Act on the Crypto-Assets Market, implementing solutions to enact EU Regulation 2023/1114, in particular regarding effective supervision and investor protection. The Act is to enter into force 14 days after promulgation;
• The Act amending the Tax Code and the Fiscal Criminal Code , introducing changes in terms of statute of limitations for tax liabilities. The act is expected to enter into force on 1 October 2026.
• The Act amending the Act on the Gift and Inheritance Tax, extending by one year the tax exemption for gifts made to those affected by the floods of September 2024, provided that the gifts are used to address the aftermath of the floods by 31 December 2026. The Act is to enter into force on the day of its promulgation.

Furthermore, the Senate made amendments to the following statutes:

• The Act amending the Tax Code and certain other acts, introducing over 50 amendments, including increase of the limit of tax payable by an entity other than a taxable person from PLN 1,000 to PLN 5,000, and amendments in terms of reporting tax arrangements. The act is expected to enter into force on 1 October 2026.
• The Act amending the Tax Code, adjusting the legal framework to a situation in which individual tax rulings issued by competent local government tax authorities are published (in anonymised form) in a single, unified, and publicly accessible database of tax rulings. The Act is to enter into force 3 months after promulgation.

The amendments to the statutes will now be put to a vote in the Sejm.

Last week, the European Commission published the work programme for VAT in the Digital Age (ViDA), covering implementation activities planned for 2026. The European Commission prioritizes e‑invoicing, digital reporting, implementing new rules for digital platforms, and extending the OSS regime.

VAT in the Digital Age: 2026 Work Programme available - Taxation and Customs Union

On 18 May 2026, OECD published new information regarding the implementation of the Global Minimum Tax (GMT), including the common understanding of jurisdictions implementing the Global Minimum Tax since 2024 and further administrative guidance. Clarifications have been provided, including on the rules for calculating the effective tax rate and the standards for documenting tax settlements.

Global minimum tax: Release of a common understanding of implementing jurisdictions and further administrative guidance to support compliance

Furthermore, a template of the top-up tax information (GIR-1) was published at Ministerstwo Finansów - Portal Gov.pl, as well as a list of jurisdictions with which the Republic of Poland has concluded a qualified agreement on the exchange of information regarding top-up taxation, which can be found at Wykaz jurysdykcji, z którymi Rzeczpospolita Polska zawarła kwalifikowaną umowę o wymianie informacji o opodatkowaniu wyrównawczym - Ministerstwo Finansów - Portal Gov.pl

In addition, tax consultations on the draft Q&A regarding the declaration of intent to apply the provisions of the GloBE Act for 2024 ran until 20 May.

On 19 May 2026, preliminary remarks to the bill on windfall profits generated in 2026 from the manufacture and trading of certain liquid fuels were added to the list of legislative work and policies of the Council of Ministers. The bill provides for levying a charge on entities earning excess profits in selected sectors, defining “extraordinary profit” based on historical performance, and applying a separate taxable base and rate from those used for standard CIT. The bill is anticipated to be approved by the Council of Ministers in Q2 2026.

In its judgment of 19 May 2026 (case file I FSK 1822/23), the Supreme Administrative Court held that ongoing tax advisory services, as well as services combining advice with representation in legal proceedings, provided under continuous‑term contracts, qualify as ongoing legal services.

The Court stressed that it is not the type of legislation involved that determines whether a service constitutes legal assistance, but the scope of activities performed, which may relate to various areas or branches of law.

As a result, the VAT point is governed by a specific provision – Article 19a(5)(4)(b), fifth indent of the VAT Act – i.e., at the time the invoice is issued, rather than at the end of the settlement period as is the case for continuous services. 

In its judgment of 19 May 2026 (case file II FSK 953/23), the Supreme Administrative Court held that Article 30a(6a) of the Personal Income Tax Act does not provide a basis for proportionally reducing the amount of tax credit for tax paid by a limited partnership by reference to the period during which a given shareholder was a general partner. The right to claim the credit is determined by the person’s status as a general partner at the time the profit is distributed, not by the duration of their membership during the taxable year. 

In its judgment of 20 May 2026 (case file I FSK 1397/23), the Supreme Administrative Court confirmed that where a comprehensive service is rendered, and transport is an element necessary for performance of a contract for the supply of goods, the taxable amount is the sum of all items on the invoice relating to that transaction. Transport costs, even if shown separately, remain part of the taxable amount for the supply and are subject to the same VAT rate. The way the transaction is presented on the invoice (broken down into separate items) does not affect the substantive classification of the service as a comprehensive one. 

In its judgment of 20 May 2026 in joined cases T‑685/24 and T‑686/24, the CJEU held that the concept of ‘own use’ of a private individual in Article 32 of Directive 2008/118/EC and Article 32 of Directive 2020/262 does not cover situations where a person acquires and transports excise goods with a view to passing them on to a third party free of charge, irrespective of the quantity of those goods intended to be passed on. Such transactions cannot benefit from the regime applicable to goods for personal use and must instead be assessed under the rules governing movements of excise goods for purposes other than the purchaser’s own consumption.