Separate NIP for a branch of a foreign company and KSeF – can the system handle it?

One of the controversial issues among taxpayers and tax authorities is the requirement for foreign company branches operating in Poland to obtain a separate NIP (Tax Identification Number). Tax authorities emphasize in their interpretations that a branch, as a payer of income tax (PIT) advances and social and health insurance contributions, should have its own NIP, separate from the parent company’s number.

On the other hand, taxpayers argue that a branch is not a separate legal entity – it has no legal personality and operates on behalf of and for the account of the foreign parent company. Consequently, in their view, the obligation to obtain a second NIP is unnecessary and creates needless complications.

From a VAT perspective, it is clear that the appropriate NIP for conducting transactions should be the one obtained by the foreign company, not its branch.

Position of Administrative Courts

Case law consistently supports taxpayers in this matter. Both Voivodeship Administrative Courts (WSA) and the Supreme Administrative Court (NSA) maintain that a single entity should not have two NIP numbers. NSA rulings (e.g., case number III FSK 1274/24 from January 30, 2025, and III FSK 1330/22 from June 28, 2024) clearly indicate that a foreign entity’s branch is not required to obtain a separate NIP. Courts emphasize that the principle of single registration is explicitly derived from Article 5(1) of the NIP Act.

The Double NIP Issue in KSeF – Practical Complications

Confusion surrounding NIP numbers becomes particularly significant in the context of the National e-Invoicing System (KSeF). The key identifier in KSeF is the NIP, meaning invoices will be ‘addressed’ to the appropriate accounts based on this number. If business partners are unsure whether to use the branch’s NIP or the parent company’s NIP, errors may occur in issuing and receiving invoices.

This issue has already been recognized in practice. In a ruling by the WSA in Poznań on December 3, 2024 (case number I SA/Po 532/24), the court pointed out that dual numbering leads to invoicing errors and, after KSeF implementation, may even paralyze the operations of foreign companies and their branches. Suppliers, unaware of the correct NIP, may enter the wrong number on invoices, and the e-invoicing system does not provide a simple way to correct such mistakes.

Why Do Tax Authorities Keep Insisting?

Despite unfavorable court rulings, tax authorities continue to uphold their stance and pursue cases all the way to the NSA. This raises concerns since courts have repeatedly pointed out that assigning separate NIP numbers to a foreign company and its branch is unnecessary and leads to avoidable difficulties.

One of the tax authorities’ arguments is the distinction between a taxpayer and a tax remitter. According to their interpretation, since a branch is a remitter (e.g., for PIT and social security contributions), it should have its own NIP. However, courts emphasize that Article 5(1) of the NIP Act provides for single registration, regardless of the number of tax obligations and types of business activity.

Is a Solution on the Horizon?

Resolving this issue is relatively simple and does not require legal changes—only an adjustment in tax authorities’ practices. As court rulings indicate, existing regulations provide a clear basis for using a single NIP for the entire business activity of a foreign enterprise in Poland. If tax authorities begin to respect court decisions and stop requiring a separate NIP for branches, the invoicing problem in KSeF will be resolved. This would help businesses avoid unnecessary complications and reduce the risk of accounting and tax errors.