Poland delays VAT split payments till Nov 2019
- Jul 21, 2019 | Richard Asquith
Poland has again postponed the implementation of the VAT split payments regime, this time until 1 November 2019. The measure had already been delayed from July to September earlier this year.
This latest delay is based on feedback from businesses that they will not be ready for the anti-VAT fraud measure. The measure requires all Polish tax payers to open special VAT Accounts with Polish banks for the receipt of the VAT element of their sales invoices for certain products. These accounts have limited rights, and may generally only be used to settle VAT return amounts.
The mandatory requirement will only apply to transactions above PLN 15,000 (approx. €3,500) for the following products:
· Fuel and coal
· Mobile phones, tablets, digital cameras
· Passenger car parts
Poland had to seek EU Commission permission to introduce the measure since it deviated from the EU VAT Directive. This was granted for a temporary period from 1 July 2019. However, Poland missed this implementation date and had rescheduled for the start of 2020.
Need a fiscal representative in Poland?
Non-EU businesses selling in Poland will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.
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Researching Polish VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.