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Split Payment Regulation

Categories: NEWS & Events

Polish ‘Act Amending the Act on Value Added Tax and Certain Other Acts’ (“Split Payment Regulation”) introduced the ‘split payment’ mechanism for VAT transactions in Poland from 1st July 2018.

Polish banks have opened a dedicated VAT account for all theirs clients (“VAT Account”) to reflect this change.

The accounts owners do not need to take any action in connection with these changes and will not need to inform its customers of new standard settlement instructions. The payment will be split automatically if that option is chosen by customer so that the net amount of the payment is applied to existing account and the VAT amount is applied to VAT Account.

The Polish government encourages the use the new solution.

However, it is worth remembering, in principle the transfer from the VAT account is possible only to another VAT account or to the account of a tax office.