Polish split payments Jul 2019
- European News
- Jan 30, 2019 | Richard Asquith
The Polish Ministry of Finance has set a revised date of 1 July 2019 for the introduction of mandatory split payments for a limited range of B2B transactions. This means affected non-resident businesses with a Polish VAT number will have to open a special bank account for receipts.
The supplies affected include those susceptible to ‘missing trader’ VAT fraud in the past, including: mobile phones; laptops; computer chips; games consoles; high-value metals and related scrap metal; domestic and automotive fuel; construction works; and trading in carbon emission certificates.
The European Commission has only given Poland a temporary derogation from the EU VAT Directive for the measure until February 2022.
The anti VAT fraud measure will require the the VAT element of an invoice to be deposited by the customer into a special VAT Account of the supplier with an accredited bank. This account is supervised by the Polish tax authorities, and generally may only be used to settle the supplier’s own VAT liabilities.
Split Payments is already used in Italy for certain public service and controlled supplies. Unlike Poland, the customer has to pay the VAT element directly to the tax authorities.
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January 30, 2019
The Polish Ministry of Finance has set a revised date of 1 July 2019 for the implementation of mandatory VAT split payments for a range of B2B transactions.
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