Upcoming legal changes may significantly reduce self-employment (B2B) arrangements in Poland, which have long been common in many sectors. Tax authorities are increasing audits of B2B contracts, and proposed laws will expand labour inspectors’ powers to reclassify such contracts as employment relationships without court rulings – though decisions will remain appealable.

Key risks if reclassified:

• Contractors lose tax benefits (flat rate, VAT deductions, lower social contributions).

• Companies become liable for tax and social security as employers and cannot deduct input VAT from contractor invoices.

Upcoming legal changes include:

• Expanded powers for the National Labour Inspectorate to unilaterally reclassify B2B contracts as employment.

• The EU Platform Work Directive (due by Dec 2026) may affect interpretation of B2B work beyond just digital platforms.

Companies at higher risk:

• Those converting employees to B2B contracts.

• Engaging board members or management roles under B2B.

• Failing to clearly separate employees from contractors in daily operations.

Key compliance considerations:

• True contractor independence over working time, methods, and tools.

• Economic risk borne by the contractor.

• No continuous supervision resembling an employment relationship.

• Contractors working for multiple clients where possible.

Recommended steps:

1. Review all B2B contracts and practical implementation.
2. Identify managerial roles and adjust compensation structures.
3. Avoid B2B contracts for board members where possible.
4. Ensure contracts clearly define autonomy and are structured to comply with tax and labour regulations.
5. Train HR teams and contractors on correct B2B practices.

These changes underline the need for companies to proactively audit and adjust their B2B models to avoid severe tax, legal, and operational consequences.

The article was published on the Chambers website. Click HERE to read the full article.