Polish Order to impact B2B cash payment limits

The Polish Ministry of Finance announced, that one of the changes related to the planned flagship reform of the Polish tax and social security system called the Polish Order (‘Polski Ład’) will concern a new more strict limit of cash payment transactions in B2B relations. Currently, the limit is 15,000 PLN, however, it seems that it will be decreased to the level of 8,000 PLN by July 2022.

According to the draft amendments, all invoices amounting to more than 8,000 PLN will have to be paid using a non-cash payment method. A breach of the limit would result in losing the possibility to treat the cash expense as a
tax-deductible cost, which would negatively affect the income tax basis of the payer.