Poland VAT split payments July 2018

Mon 21st May 2018

Poland is preparing to launch voluntary anti-fraud VAT split payments on 1 July 2018. This may be made mandatory from 2019 for certain industries.

Purchasers of taxable goods or services will be given the choice to split the VAT element and pay into a special VAT Bank Account (‘r-VAT Account’) of their customer. If they do, they will be released from the shared liability for any missing or under declared VAT for their supplier.

The VAT Bank Account will be closely monitored by the Polish tax authorities, and may generally only be used to settle monthly/quarterly VAT liabilities.

Mandatory Split Payments 2019

Poland is to request from the EU permission to impose mandatory split payments in fraud-sensitive sectors next year. These include: computer chips; mobile phones; precious metals; carbon trading; and computer tablets. This would require permission from the European Commission to derogate from the EU VAT Directive, and is generally only permitted to counter tax avoidance and evasion.

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