Poland to introduce mandatory split payments regime

Following the introduction of a voluntary split payment system last year, Poland is now proceeding with a mandatory regime to come into effect from 1st September 2019 for all payments of 15,000zl (approximately 3,500 euros) or more.  Under the scheme, which will apply to both established and non-established businesses, the VAT element of any payment, including those in part as well as full settlement of an invoice, is paid into a special bank account.  The benefits for the recipient are reduced penalties for errors and receipt of VAT refunds within 25 days.  It is believed that the measure will reduce the amount of VAT leakage from the Polish VAT system due to fraud. 

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Author

Jeff Gambold

Jeff Gambold is a Senior Regulatory Specialist at Sovos, with responsibility for ensuring that the SVR product is kept updated and compliant with the latest VAT legislative changes. Prior to joining Sovos, Jeff worked in various VAT advisory and management roles within HMRC, UK Top 15 accounting practices and commercial business.
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