UPDATE: Poland plans to implement VAT split payments on 1 September 2019

12 June 2019

From 1 September 2019, Poland confirmed it plans to introduce a mandatory split payment regime for companies involved in business-to-business (B2B) sales within certain sectors prevalent to VAT fraud.

The split payment procedure will apply to transactions with a value above PLN 15,000 (approx. £3,100) and will be applicable to the following products:

• Steel
  
• Fuel and coal
  
• Mobile phones, tablets, digital cameras
  
• Passenger car parts

Once introduced, the split payment regime will mean that customers of the businesses affected will have to pay the VAT amount of these sales directly into a special government 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.