Hiring employees from Poland: B2B contracts

B2B contracts in Poland are the most common way for foreign companies to build teams in Poland without setting up a local entity and without applying the full scope of Polish labour law. This model is particularly popular for expert and specialist roles where work is task-based and can be settled as a service — such as IT, data analytics, finance, marketing, design or consulting.

From an operational perspective, long-term B2B cooperation may appear similar to standard employment. The key difference, however, is that a B2B arrangement does not create an employment relationship under Polish labour law. Instead, it is a business relationship between two independent entities. This distinction must be consistently reflected both in the contract and in day-to-day cooperation.

In this article, we explain how the Polish B2B model based on sole proprietorship (JDG) works, what obligations apply to the contractor, what a foreign company should take care of, and where the real risks lie — including hidden employment, compliance issues, VAT and permanent establishment exposure in Poland.

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How does the Polish B2B (JDG) model work?

In Poland, B2B cooperation is most commonly based on a sole proprietorship, known as jednoosobowa działalność gospodarcza (JDG), registered in the Central Registration and Information on Business (CEIDG). Registration itself is a relatively simple administrative procedure performed by the individual. Once registered, the contractor can legally provide services as an entrepreneur.

From that moment, the nature of the relationship with the foreign company changes. The Polish specialist no longer acts as an “employee” under labour law, but as an independent service provider. The cooperation takes the form of a business-to-business relationship between a service provider (the contractor) and a service recipient (the foreign company).

In practice, the contractor performs agreed services and issues invoices under the agreed settlement model. Monthly invoices for availability or a defined scope of services are common, as are milestone-based settlements or time-and-material models based on agreed reporting. From the foreign company’s perspective, the key point is that remuneration is settled via invoices — just like any standard B2B service.

Most local obligations remain on the contractor’s side. The contractor is responsible for tax and social security settlements in Poland, including personal income tax (PIT), Social Insurance Institution contributions (ZUS) and — depending on the services and status — VAT. In other words, the contractor runs their own accounting, chooses a tax regime and meets filing deadlines like any other Polish entrepreneur.

For foreign companies, this model is attractive because it usually means no need to enter the Polish payroll or HR system. The company typically does not become a Polish tax or ZUS remitter, provided the cooperation is properly structured and does not resemble de facto employment or create a permanent establishment in Poland. This is why B2B is often the first choice when entering the Polish market — fast to implement and operationally efficient, but requiring careful design from the outset.

If you want a broader view of hiring professionals from Poland, see Part 1 of our series. We explain why foreign companies increasingly hire Polish talent, what tax and legal obligations and risks may arise, and what best practices and most common employer mistakes look like: Hiring employees from Poland: What foreign employers need to know.

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Freelancer vs B2B contractor in Poland

In an international context, the term “freelancer” is often used broadly for any non-employment cooperation. In Poland, however, the distinction between a freelancer and a B2B contractor is practically important.

A freelancer usually works on a project basis, for multiple clients, over shorter cycles and with a high level of organisational independence.

A B2B contractor, by contrast, often cooperates long-term with one dominant client and may function similarly to a “regular team member” — while still operating within a service relationship.

This distinction matters because the more the cooperation resembles traditional employment, the greater the need to ensure that both the legal structure and operational practice do not cross into the area of hidden employment under Polish law.

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Obligations of a Polish B2B contractor – taxes and ZUS

Under the JDG model, the main burden of formal obligations rests with the contractor. From the foreign company’s perspective, it is crucial to understand that B2B cooperation means working with an independent entrepreneur who is fully responsible for their public-law obligations in Poland — particularly taxes and social security.

First, the contractor chooses their taxation method. Polish law provides several options for taxing business income, including progressive tax rates, a flat tax, or lump-sum taxation (with the tax card largely limited to legacy cases). As a result, two contractors issuing similar invoices to the same company may face different tax burdens. For the foreign company, the key issue is not which option is chosen, but that the contractor understands the consequences and settles taxes correctly and on time.

Second, the contractor pays ZUS contributions, including health insurance. Entrepreneurs in Poland are required to pay social and health contributions according to statutory rules. The system includes certain reliefs for new businesses (such as the “start-up relief” and reduced contributions) as well as schemes like Small ZUS Plus, provided statutory conditions are met.

In practical terms, this means that the foreign company does not act as a ZUS remitter and does not handle the contractor’s social security settlements. However, as part of onboarding, it is good practice to include basic verification steps — for example, confirming that the contractor uses professional accounting support or has a clear settlement plan. (This is also where accounting outsourcing in Poland can support the contractor side operationally.)

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VAT and invoicing in a B2B model

VAT is often a source of confusion in B2B cooperation with Polish contractors. Many companies assume that if the service provider is based in Poland, Polish VAT should automatically appear on the invoice. In B2B services, however, VAT treatment depends primarily on the place of supply, not the contractor’s location.

Under the general B2B rule, the place of taxation is the country where the customer has its registered office or fixed establishment relevant for the transaction. This rule stems from EU VAT regulations (Article 44 of the VAT Directive) and is reflected in Polish VAT law (Article 28b of the VAT Act). As a result, for typical specialist services such as IT, consulting or marketing provided to a foreign company, VAT is often settled on the customer’s side — for example under the reverse charge mechanism, provided the conditions are met.

Correct invoicing depends on elements that should be clarified at the start of cooperation: the customer’s VAT status, country of establishment, valid VAT identification number (e.g. EU VAT number) and whether the service falls under any exception to the general rule. Because exceptions can materially change VAT treatment, best practice is for the contractor — together with their accountant — to confirm the correct approach during onboarding. This is a strong use case for VAT advisory services in Poland.

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Obligations of the foreign company in a B2B arrangement

From the foreign company’s side, formalities are generally lighter than in an employment model, but B2B cooperation still requires proper structuring of documents and operational practice. At the outset, the contractor’s status as an active entrepreneur should be verified and a clear settlement model agreed (scope of services, invoicing schedule, acceptance procedures).

A well-drafted B2B contract is essential. It should regulate the subject of services, liability, confidentiality and rights to work results. Equally important is ensuring that daily cooperation reflects a service relationship. Excessive resemblance to employment — such as fixed working hours, strong organisational subordination or “employee-style” absence rules — increases the risk of reclassification and potential legal and tax consequences in Poland.

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The key risk: hidden employment and sham self-employment

The most significant risk in a B2B model is a situation where cooperation meets the criteria of an employment relationship in practice. The Polish Labour Code (Article 22) defines employment features such as work performed under the employer’s direction and at a place and time designated by the employer.

In this context, the role of the National Labour Inspectorate (PIP) is important. If work is performed under conditions characteristic of employment, the inspector may initiate control activities and, in certain cases, file a claim with the labour court to establish the existence of an employment relationship.

Most problems arise not from the contract itself, but from a mismatch between the contract and everyday practice. A safe B2B model requires consistency between a properly structured agreement and operational reality that preserves the service-based nature of the relationship.

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How to structure a compliant B2B contract with a Polish contractor

A compliant B2B contract should consistently reflect a service relationship rather than employment. Instead of describing a position and typical employee duties, the agreement should precisely define the scope of services, expected deliverables and settlement model — including invoicing rules, payment terms and acceptance procedures.

It should clearly state that the contractor operates as an independent entrepreneur, organises the manner of service delivery autonomously and bears responsibility typical for B2B relations.

In cross-border cooperation, particular attention should be paid to clauses protecting the company’s interests, especially confidentiality (NDA), intellectual property rights (IP) and data security requirements. The broader the contractor’s access to systems, data or infrastructure, the more detailed these provisions should be — which is especially relevant in technology and finance-related sectors.

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Key elements of compliant B2B cooperation

B2B cooperation is generally safe when both the contract and operational practice consistently confirm a service relationship. In particular, it is worth ensuring that:

• the Polish B2B contractor runs an active sole proprietorship (JDG) and has correct invoicing details,
• the contract clearly defines the scope of services, settlement rules and acceptance procedures,
• cooperation does not replicate elements typical of employment (especially fixed working time and place),
• the contractor retains real independence in how services are performed and bears B2B-level responsibility,
• the contractor has no authority to negotiate or conclude contracts on behalf of the company or make binding commercial decisions, limiting legal and tax risks.

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When is B2B the best option for a foreign company?

B2B is usually the best choice when a company wants to start cooperation with a Polish specialist quickly and flexibly, without building a local structure. It works particularly well for expert, project-based and product roles where work is measurable and there is no need for employee-style subordination.

If, however, the company needs to impose a fixed schedule, apply standard HR processes or requires full availability and organisational control, an Employer of Record (EoR) model or a local presence in Poland is often a more appropriate solution.

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The B2B model with Polish contractors is widely used and highly operationally efficient — provided it is treated as a genuine business relationship. Polish law defines employment characteristics, and supervisory authorities have tools to challenge arrangements that are B2B in name only.

If you plan to engage contractors from Poland and want to ensure your cooperation model, contracts and operational practice are consistent — including from a tax and organisational perspective — getsix® can support you in structuring compliant cooperation and preparing the necessary documentation. Contact us.

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If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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