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. 

Author

Jeff Gambold

Jeff Gambold is a Senior Regulatory Specialist at Sovos in the UK. Within Sovos’ Regulatory Analysis function, Jeff is responsible for researching VAT rule changes in maintaining and developing Sovos’ SVR product offering for the EMEA Region. Prior to joining Sovos, Jeff spent a number of years working in the VAT field, starting at the UK tax authority Customs & Excise before moving into advisory firms and then industry managing VAT for a multinational organisation.
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