Poland: New version of proposed legislation amending VAT law; other tax developments
Other tax developments include extension of reduced VAT rate and excise duty on motor fuels
april 21, 2026
The KPMG member firm in Poland prepared an April 2026 report summarizing recent tax developments, including:
- A new version of the bill amending the VAT Act, including various modifications, was published on the government website. The amendments are expected to be adopted by the Council of Ministers in the second quarter of 2026.
- A draft regulation amending the regulation on VAT returns was published on the government’s website, which would align existing VAT return principles with the changes introduced by the national e-invoicing system (KSeF). The draft regulation would introduce new rules for EU and non‑EU entities with respect to VAT refunds on invoices issued in KSeF. EU entities would be required to provide KSeF numbers via the tax administration of their country, and the absence of such numbers would mean that copies of paper invoices must be attached to the application or e-invoices must be submitted. Non‑EU entities would be required to indicate KSeF numbers in the application, and if they fail to provide them, they would be obliged to attach original paper invoices or submit/make available e-invoices to the head of the tax office.
- The reduced 8% VAT rate and reduced excise duty on motor fuels were extended until the end of April.
- The Supreme Administrative Court held (I FSK 1158/23) that for expenditures on motor vehicles subject to the 50% VAT deduction cap (i.e., when the vehicle is not used exclusively for business purposes), the cap is applied at the stage of determining the “base” amount of VAT eligible for deduction. Subsequently, if the taxpayer carries out both taxable and non‑taxable activities (“mixed activity”) and the expenditure cannot be allocated exclusively to taxable transactions, the pro rata rule under the VAT Act must be applied to the VAT amount determined in this way.