Poland's Split Payment System came into force on July 1st 2018.
Split payment in Poland was introduced on the 1st of July 2018. Taxback International reported on this back in May 2018, giving you everything you need to know about the new system. Here's an update and what this new system means.
It acts as an anti-VAT fraud measure, with the basic principle that an invoice is paid by the customer into two separate bank accounts:
- NET amount is paid to the supplier’s business account;
- VAT amount is paid to a specific VAT Bank Account of the supplier;
B2B customers are required to pay the VAT of an invoice into a separate VAT Bank Account of the supplier. The Account can be used only to pay the supplier’s own VAT liabilities and it is supervised by the Polish tax Authorities.
What you need to know:
- Split payment will be voluntary.
- If a taxpayer has a regular bank account in a Polish bank, a free of charge VAT bank account will be opened automatically.
- All payments via split payment will be made in PLN and VAT bank accounts will be kept in PLN.
- The VAT bank account can be generally used only for VAT purposes i.e. paying VAT to the suppliers or paying VAT due to the tax office.
There is a possibility to transfer the money from the VAT bank account to a regular bank account upon receiving permission from the tax office (it could take up to 60 days and it may be subject to tax audit).
Split payment will be used only in transactions between active VAT payers.
Instead of the regular 60 days for the refund period, by using the VAT bank account it will only take 25 days.
The VAT bank accounts will be opened automatically by the banks in which the taxpayers have regular bank accounts even if the taxpayers do not want to use them. There is a possibility that the taxpayers will receive payment on the VAT accounts from the customers, as the client will decide to whom to make the payment.
If you would like to speak to an expert about this new Split Payment system, and how it could impact your business, contact our team today.
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