Split payment mechanism finally applicable in Poland
Poland started applying the split payment on certain supplies of goods above a given threshold. We provide the full list of goods in scope of these changes.
Last 1 November 2019 entered into force the long-awaited split payment mechanism in Poland. This mechanism applies to B2B transactions for selected groups of goods and services where the invoice exceeds the gross amount of PLN 15,000. The new scheme also applies to non-established companies.
How does it work?
The split payment of VAT is an important deviation from the general rule to collect the tax. As explained in this article, split payment means that VAT is no longer paid together with the net amount into the same bank account. Instead, the VAT component of an invoice will be paid to a separate ´special´ bank account. In practice, taxpayers in scope of these changes will be required to open a new bank account where all VAT collected on sales will be deposited. This account may also be used to pay VAT on purchases. Ultimately , the special VAT bank account will transfer the monthly VAT due to the Polish tax authorities or will receive the corresponding VAT refund in case of VAT reimbursements.
Each invoice issued subject to the new scheme must contain the following reference:
‘mechanizm podzielonej płatności’ . There will also be new reporting obligations, as new codes will apply in the SAF-T return for those goods subject to split payment.
What products are in scope?
You can find the full list and commodity codes in scope of this obligation in this overview.
Questions?
Marosa can evaluate the impact of Polish split payment mechanism on your business. We will review your transactions, types of products sold, and formalities required on invoices and reporting. Marosa can help you setting up the special account, reviewing your first invoices and reviewing your first SAF-T returns to make sure that you are fully compliant with the new regime.
Contact us to receive more information on how can we assist your business complying with the new Polish split payment.