Poland VAT split payments to become mandatory for some businesses from July 2019

8 March 2019

From 1 July 2019, Poland will introduce a temporary mandatory split payment regime for companies involved in business to business (B2B) sales within in certain sectors prevalent to VAT fraud.

Once introduced the split payment procedure will mean that customers of the businesses affected will have to pay the VAT amount of a sale directly into a special supervised bank account, while paying the net amount directly to the supplier. The tax authorities can then monitor the bank account and make withdrawals in order to settle the supplier’s VAT liability.

This follows the introduction of a similar voluntary scheme for all businesses during July 2018. The sectors affected will be steel, scrap, electronics, gold, non-ferrous metals, fuels, and plastics.