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Poland VAT split payments 2018

Poland VAT split payments 2018

Poland is considering and amendment to the VAT Act,  introducing a voluntary B2B VAT split payments regime from 2018.  The measure, which includes customers paying VAT to a special, locked bank account, is aimed at reducing VAT fraud.

The draft proposal includes a split payment procedure whereby the VAT amount of a sale is paid into a special, supervised bank account of the supplier.  The tax authorities can then make direct withdrawals from the bank account in settlement of the supplier’s regular VAT filing.

Whilst initially voluntary, any supplier opting for the procedure would be exempted from other anti-VAT fraud measures.  This includes being held jointly and severally liable for the payment by their customers of the VAT element of sales.

The split payment proposal was originally raised in 2015.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.