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Poland VAT split payments 2018

  • May 14, 2017 | Richard Asquith

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.

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. 

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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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.