Poland delays VAT split payments to April 2018
- Sep 7, 2017 | Richard Asquith
Poland has announced a delay to the introduction of anti-VAT fraud Split Payments until 1 April 2018. The original date had been 1 January 2018.
Split Payments require the payment of the VAT element of a sales invoice into a special, restricted VAT Account of the vendor. The vendor may only use these funds to settle their own VAT liabilities with the tax authorities or against the VAT due on their own taxable purchases. The VAT Accounts make the audit trail on VAT payments more transparent and secure for the tax authorities, and helps prevent VAT fraud.
The reason for the delay is to give banks more time to modify their internal systems to enable the new VAT Accounts. Under the latest proposal, the time for which amounts paid into the account for non-VAT spend has been shortened from 90 days to 60 days.
Split Payments are already used in a limited number of cases in Italy. Romania has also proposed their introduction in 2018.
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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.
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