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Poland: VAT “split payment” mechanism effective 1 July 2018

Poland: VAT “split payment” mechanism, 1 July 2018

A measure introduces the “split payment” mechanism as part of the value added tax (VAT) rules, effective 1 July 2018.


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The “split payment” mechanism is based on the assumption that the purchaser of goods and services will remit the amount of VAT (either in total or in part) into a dedicated VAT bank account of the supplier. The account will be split as follows:

  • The amount of VAT due will be deposited in the first account (access to which will be restricted).
  • The net due amount will be kept in the second one. 

The “split payment” will only apply to VAT taxpayers and will have voluntary character. The taxpayer will not have free access to the funds deposited in the “split payment” account. To encourage the use of the “split payment” mechanism, certain incentives are made available including:   

  • Relief from joint and several liability for VAT arrears 
  • Relief from certain VAT-related sanctions
  • Relief from liability when payment from the “split payment” account is made before the due date

These incentives may not be available if the taxpayer has knowledge that the invoice was issued by a non-existing entity, the invoice concerns activities that were not affected, the invoice indicates incorrect amounts, or the invoice reflects untrue or invalid actions.


Read a June 2018 report [PDF 342 KB] prepared by the KPMG member firm in Poland

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