How to Verify Business Partners and Avoid Tax Sanctions

Operating a business in Poland requires entrepreneurs not only to understand the tax regulations but also to systematically verify their business partners. One of the key tools serving this purpose is the White List of VAT Taxpayers (Polish: biała lista podatników VAT), which is an electronic Register of Entities Registered as VAT Taxpayers maintained by the Head of the National Revenue Administration (Krajowa Administracja Skarbowa, KAS). This instrument, in force since 1 September 2019 under Article 96b of the Polish VAT Act, gained particular importance following the introduction of sanctions effective from 1 January 2020, which may affect taxpayers making payments to bank accounts not included in the register.

For foreign investors who are starting or already conducting business operations in Poland, understanding the rules governing the White List is especially critical. Failure to verify a business partner may result in the loss of the right to treat the expenditure as a tax-deductible cost, and even in joint and several liability for the supplier’s VAT arrears. This article provides a detailed overview of the White List, the data it contains, the methods of verifying business partners, and the steps to take in order to avoid tax sanctions.

What Is the White List of VAT Taxpayers?

 Legal Basis and Purpose

The White List of VAT Taxpayers was introduced under Article 96b of the Act of 11 March 2004 on Tax on Goods and Services (the Polish VAT Act). It is a publicly accessible electronic database that replaced three previously operating registers of VAT taxpayers. The primary objective behind its creation was to tighten the tax system, particularly in relation to combating carousel fraud and VAT evasion. The White List also serves as a trust-building mechanism among market participants, enabling rapid and free-of-charge verification of the tax status of any business partner registered in Poland.

 Scope of Data Included in the Register

The Register of VAT Taxpayers contains a comprehensive set of information about entities registered within the Polish VAT system. In particular, it allows verification of the following: the company name (or first and last name for natural persons), tax identification number (NIP), statistical number (REGON), registered office address, VAT registration status (active taxpayer, exempt, deregistered, or unregistered), dates of registration, deregistration, or reinstatement to the VAT register together with the legal basis for such decisions, and – most critically from the settlement perspective – the bank account numbers reported to the tax office.

It is important to note that only settlement accounts within the meaning of Article 49(1)(1) of the Banking Law Act and named accounts in cooperative savings and credit unions (SKOK) opened in connection with business activity, confirmed through the STIR system, are published on the White List. Private bank accounts (personal current accounts) are not displayed in the register, even if an entrepreneur uses them for business purposes. This is a common reason for the absence of an account from the White List, particularly for sole proprietors.

 Categories of Entities Covered

The White List covers four categories of entities: taxpayers registered as active VAT payers, taxpayers registered as VAT-exempt, entities for which the head of the tax office refused registration or which were deregistered from the VAT register, and entities whose VAT registration was reinstated. Data on deregistered entities is removed from the register after five years from the end of the calendar year in which the deregistration occurred, which corresponds to the general statute of limitations for tax liabilities.

The Verification Obligation and the Threshold

 When Does the Verification Obligation Arise?

Although the regulations do not explicitly impose an obligation to check a business partner on the White List before every transaction, they indirectly enforce such verification through a system of sanctions. The obligation to verify a business partner’s bank account against the White List arises when three conditions are met simultaneously: the one-off transaction value exceeds PLN 15,000 gross (regardless of the number of payments resulting from that transaction), the transaction is conducted between entrepreneurs (B2B) and documented with an invoice, and the payment is made by bank transfer to an active VAT taxpayer.

It is worth emphasising that the PLN 15,000 threshold refers to the total value of the transaction, not to individual payments. Therefore, if the parties have agreed to pay a PLN 20,000 invoice in four instalments of PLN 5,000, each instalment is subject to the White List bank account verification requirement, even though individually it does not exceed the PLN 15,000 threshold.

 Transactions Exempt from Verification

Not all payments are subject to the verification requirement. In particular, the following are excluded: transactions with a value not exceeding PLN 15,000 gross, cash payments, payments to entities not registered as active VAT taxpayers (e.g. VAT-exempt entities), transactions with foreign contractors that do not hold a Polish NIP and are not registered for Polish VAT purposes, and payments made using the split payment mechanism, which itself constitutes a safeguard.

Methods of Verifying Business Partners

 Ministry of Finance Search Engine

The primary tool for verifying business partners is the search engine available on the Ministry of Finance website at https://www.podatki.gov.pl/wykaz-podatnikow-vat-wyszukiwarka. The search can be performed using one of four parameters: NIP number, REGON number, bank account number, or entity name (first and last name for natural persons). It is crucial to specify the date for which the data should be displayed – the Ministry of Finance recommends that bank account verification be carried out on the day the payment order is placed.

The search engine also allows downloading a verification confirmation, which should be retained in the company’s documentation in case of a potential tax audit. The data in the register is updated once daily on business days, based on information from the KAS database, the CEIDG, and the KRS registers.

Verification via API

For businesses processing a large number of transactions, the Ministry of Finance has made available an API (Application Programming Interface) that enables automatic verification of business partners without the need to manually use the search engine. The API allows integration with accounting and ERP systems, enabling automatic bank account verification at the time of invoice booking or payment ordering.

 Mass Verification – the Flat File

The third verification method is the so-called flat file, published daily at approximately midnight on the Ministry of Finance’s resources. This file contains encrypted data enabling mass verification of NIP–bank account number pairs. This solution is particularly useful for large business entities that process hundreds of payments daily and need a fully automated verification process.

The biznes.gov.pl Portal

An alternative verification source is the business search engine on the biznes.gov.pl portal, which, in addition to White List data, also presents information from CEIDG and KRS entries. This is a particularly useful tool for comprehensive assessment of a business partner’s credibility, combining registry data with tax information.

Sanctions for Payments to Accounts Outside the White List

 Income Tax Consequences

Making a payment to a bank account that does not appear in the register on the date the payment order is placed carries serious consequences. Primarily, the purchaser loses the right to treat the entire payment amount (not just the excess above PLN 15,000) as a tax-deductible cost. If the expense has already been recognised in costs based on the received invoice, the taxpayer is obliged to make the appropriate adjustment – either reducing costs or increasing revenue in the month in which the payment order was placed.

 Joint and Several Liability for VAT

The second, equally severe consequence is the purchaser’s joint and several liability for the VAT not paid by the supplier – proportional to the VAT amount attributable to the relevant transaction. This means that the tax authority may pursue payment of this tax directly from the purchaser, with their entire assets, if the supplier has failed to meet their tax obligations. This sanction is particularly deterrent in nature and constitutes one of the strongest mechanisms motivating systematic verification of business partners.

How to Avoid Sanctions – Protective Mechanisms

The ZAW-NR Notification

If, despite exercising due diligence, a payment is made to an account outside the White List, the legislator has provided for the possibility of avoiding sanctions by filing a notification on the ZAW-NR form. This notification must be submitted to the head of the tax office competent for the purchaser (the taxpayer making the payment) within 7 days of the date the payment order was placed. The date of placing the payment order is understood as the day on which the payment instruction was submitted to the bank or SKOK, not the day the account was actually debited.

A significant simplification is that the ZAW-NR notification is filed only once – upon the first payment to a given account outside the register. Subsequent payments to the same account in the course of cooperation with the same business partner do not require a new notification. The notification can be filed electronically via the e-Tax Office (e-Urząd Skarbowy) or the e-Delivery (e-Doręczenia) system. However, it should be noted that since 1 January 2026, notifications submitted via ePUAP to tax offices are no longer recognised as effectively delivered.

 The Split Payment Mechanism

The second effective method of protection against sanctions is making a payment using the split payment mechanism (MPP). A payment made in this manner to an account outside the White List releases the purchaser from joint and several liability for the supplier’s VAT obligations. However, it is important to note that the use of split payment does not automatically eliminate the income tax consequences – filing the ZAW-NR notification remains necessary in this regard.

 The White List and Foreign Investors

Scope of Application to Foreign Entities

The White List applies exclusively to entities registered for Polish VAT purposes. This means that foreign contractors who do not hold a Polish NIP and are not registered as VAT taxpayers in Poland do not appear in the register. The obligation to verify bank accounts against the White List and the associated sanctions do not apply to payments made to the foreign bank accounts of such entities. For verifying the VAT status of business partners from EU Member States, the separate VIES system (VAT Information Exchange System) should be used.

The situation differs, however, for foreign entities registered as active VAT taxpayers in Poland. Such entities are required to report their Polish bank accounts via the NIP-2 or NIP-8 forms and are subject to all the White List rules. Foreign investors conducting business through a Polish subsidiary or branch should ensure that the company’s bank accounts have been properly reported and appear on the White List.

Practical Guidance for Foreign Investors

Foreign investors should pay particular attention to several key matters. First, immediately after registering the company and opening a business bank account, they should ensure that the account has been properly reported on the NIP-2 or NIP-8 forms. Second, before issuing the first VAT invoice, they should verify that the company appears on the White List as an active VAT taxpayer – the absence of such an entry may discourage potential business partners who fear sanctions for payments to entities outside the register. Third, it is advisable to implement internal contractor verification procedures, ideally integrated with the accounting system, to automate the process.

 The White List in the Context of KSeF

The implementation of the mandatory National e-Invoice System (KSeF), which commences on 1 February 2026 for large entities and on 1 April 2026 for other taxpayers, adds a new dimension to business partner verification. KSeF provides assurance that an invoice has been issued by an authorised entity, thereby increasing mutual trust among market participants. At the same time, the White List remains an indispensable tool for verifying the bank account to which payment should be made – KSeF does not replace this function. In practice, both systems operate in a complementary manner: KSeF confirms the authenticity of the invoice, while the White List verifies the correctness of the payment account.

It is also worth noting that the implementation of KSeF may accelerate the VAT refund process – the envisaged timeframe is 40 days instead of the standard 60. This is a significant benefit for taxpayers who properly implement the new invoicing system, provided they simultaneously comply with the rules on business partner verification via the White List.

Best Practices for Business Partner Verification

In order to minimise tax risk and ensure full regulatory compliance, entrepreneurs should adopt a comprehensive approach to business partner verification. It is essential to carry out bank account verification on the day the payment order is placed, not earlier, as the data in the register may change. Each verification confirmation should be archived in the company’s documentation. For entities processing a large volume of transactions, integration of the accounting system with the White List API is recommended to automate the entire process.

Equally important is the ongoing monitoring of one’s own data on the White List – entrepreneurs should regularly check whether their bank accounts are visible in the register and whether other data remains current. When changing a bank account or tax office, it is necessary to immediately file an updating notification. Entrepreneurs should also develop internal procedures for handling situations where a payment has been made to an account outside the register, including the immediate filing of a ZAW-NR notification.

Conclusion

The White List of VAT Taxpayers is a fundamental instrument within the Polish tax system, designed to tighten economic transactions and protect honest entrepreneurs. The obligation to verify business partners, although formally indirect, is effectively mandatory for B2B transactions exceeding PLN 15,000 gross – as the sanctions for non-compliance are exceptionally severe.

For foreign investors conducting business in Poland, it is crucial to incorporate verification procedures into everyday business practice and to ensure that their own data on the White List is complete and up-to-date. In an era of mandatory KSeF implementation, the White List remains a complementary element of the verification system, providing tax security for both purchasers and suppliers alike.