B2B contract audits may not end with a decision issued by the Polish National Labour Inspectorate, or PIP. Information gathered by labour inspectors may also be shared with the tax authorities and the Social Insurance Institution, ZUS. This may lead to a review of the previous tax and social security settlements of both the company and the self-employed contractor. Rzeczpospolita published an article featuring our commentary on the tax consequences of reclassifying a B2B relationship as employment. The topic was also highlighted on the front page of the newspaper’s 7 July 2026 edition.
B2B Contract Audits and Information Sharing Between Authorities
The main risk does not arise solely from the possibility that a person formally operating as a sole trader may be regarded as performing work under conditions characteristic of an employment relationship.
The exchange of information between PIP, ZUS and the Polish National Revenue Administration is equally important. A case that begins as a labour-law inspection may therefore attract the attention of the tax authorities, which may independently review whether the previous tax settlements were correct.
As our expert explained in his commentary for Rzeczpospolita:
Dr Piotr Sekulski, tax advisor
“The amendment also requires regional labour inspectors to provide the competent tax authorities with information concerning the case, for example information that an appeal against a PIP decision has been submitted to a civil court.”
A PIP decision does not therefore have to amend tax settlements for previous years automatically. It may, however, provide the tax authorities with information that encourages them to initiate a separate tax audit.
Tax Consequences of Reclassifying B2B as Employment
If the tax authorities conclude that the relationship did not constitute genuine business activity, the consequences may affect personal income tax, VAT and social security contributions.
The company may be required to recalculate the remuneration previously paid under invoices, determine outstanding PIT advances and ZUS contributions, and correct the relevant payroll documentation. This may include PIT-11 information returns and PIT-4R annual declarations.
The self-employed contractor may, in turn, be required to correct business tax settlements. This may affect declared revenue, deductible costs and the chosen form of taxation. The consequences may be particularly significant where the income was taxed under the flat-rate PIT regime or the lump-sum tax regime.
Our expert also emphasised in the article:
Dr Piotr Sekulski, tax advisor
“Moving in the opposite direction means that those tax and contribution savings may have to be repaid. And with an additional cost, because the tax authorities and ZUS will also charge late-payment interest.”
VAT creates an additional area of risk. If the authorities determine that the individual was in fact acting as an employee, they may question the company’s right to deduct VAT shown on that individual’s invoices. This may result in corrections of previous VAT settlements and payment of outstanding tax together with interest.
A Written Contract Alone Does Not Ensure Compliance
A properly drafted B2B agreement is important, but it does not provide sufficient protection where the actual relationship resembles employment.
The authorities may examine, among other matters:
- how instructions are issued and work is supervised;
- the contractor’s operational independence;
- the place and working hours in which services are performed;
- responsibility for the outcome of the work;
- whether the contractor bears genuine business risk;
- whether services may be provided to other clients.
For this reason, B2B contract audits should cover not only the wording of the agreement but also internal procedures, communication with contractors and the day-to-day organisation of the relationship.
Not every long-term B2B arrangement constitutes employment. The risk increases, however, where a contractor formally issues invoices but in practice operates within the organisation in the same way as an employee.
B2B Contract Audits – How Can We Help?
At Outsourced.pl, we help businesses assess the tax and social security risks connected with B2B cooperation. We review agreements, internal procedures and the actual manner in which services are performed. We then identify areas that may require modification or additional safeguards.
The full article featuring our commentary was published in Rzeczpospolita under the title: “Reclassifying Self-Employment as Employment: PIP Inspectors May Trigger Tax Chaos.”
