Split Payments in Poland - Introduced in July 2018
The anti-VAT fraud measure will be implemented in July (delayed from the original proposed date of January).
Split Payments is a measure requiring B2B customers to pay the VAT element of an invoice into a separate VAT Bank Account of their supplier. This account is supervised by the Polish Tax authorities, and generally may only be used to settle the supplier’s own VAT liabilities.
Key points to consider:
* Using split payment will be voluntary
* VAT bank accounts will be opened by the banks automatically and free of charge for all taxpayers, provided a taxpayer has a regular bank account in a Polish bank
* VAT bank accounts will be kept in PLN and all payments via split payment will be made in PLN
* Money from VAT bank account can be generally used only for VAT connected activities i.e. mainly:
1. to pay VAT to the suppliers
2. to pay VAT due to the tax office
* It will be possible to transfer the money from the VAT bank account to a regular bank account upon receiving a permission from the tax office (the decision can take up to 60 days). This may be subject of a tax audit
* Split payment will be used only in transactions between active VAT payers
* On the request from a taxpayer to make the refund on a VAT bank account there will be 25 days period for the refund instead of regular 60 days.
Note: Even if a taxpayer does not want to use the VAT bank account, it will be opened automatically by the banks in which the taxpayer has a regular bank account, so possibly the taxpayer may receive payments for VAT from his clients on this account as it will be the client who will decide how to make the payment.
Therefore, it is especially important to be aware of the new regulations regarding split payment.