The Ministry of Finance has proposed legislation that would require for certain transactions application of the “split-payment mechanism” for purposes of value added tax (VAT) remittances. The effective date would be 1 September 2019.
Under the split-payment mechanism, the net amount of a sale is transferred to a regular bank account, with the amount of VAT being transferred to a designated "VAT account." The split-payment mechanism has been available on a voluntary basis since July 2018, with the buyer deciding whether to apply the split-payment mechanism.
Under the proposal, effective 1 September 2019, the split-payment mechanism would be mandatory for selected categories of supplies of goods and services, including:
The draft proposal would provide a threshold of PLN 15,000 for the mandatory split-payment mechanism to be triggered. Failure to apply the split-payment mechanism when required would be subject to a penalty equal to 100% of the amount of VAT.
Read a June 2019 report [PDF 256 KB] prepared by the KPMG member firm in Poland
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