Share with your friends

Poland: VAT split-payment and netting rules

Poland: VAT split-payment and netting rules

Taxpayers purchasing goods—including electronics, fuels, steel, recyclable materials, car parts, or construction services—need to be aware of a requirement to settle their payments using the split-payment mechanism for value added tax (VAT) purposes. Failure to comply may result in penalties equal to 30% of the amount of the tax liability.


Related content

The use of the split-payment mechanism is mandatory effective 1 November 2019. Read TaxNewsFlash

There is an exception for transactions settled by a “set-off” rule (referred to in the Civil Code). Recent statements by the Ministry of Finance suggest that an exemption from the split-payment requirement may not apply to multilateral netting.

However, taxpayers purchasing goods or services that are subject to mandatory split-payment treatment but that use multilateral netting or similar non-cash forms of settlement in their accounts (including undue liabilities) need to consider whether they are in compliance with the rules.

Read an October 2019 report [PDF 232 KB] prepared by the KPMG member firm in Poland

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal