Poland VAT split payments 2018

Mon 15th May 2017

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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