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Clifford Chance

Clifford Chance


Mandatory Split Payment Method for VAT payments

30 September 2019

The split payment mechanism has operated as a voluntary method of payment in Poland since July 2018. It was introduced by the Act Amending the Act on the Tax on Goods and Services and Certain Other Acts of 15 December 2017 (Journal of Laws of 2018, item 62, as amended). The split payment mechanism is the voluntary splitting of the buyer's liability in a transaction for the sale of goods and services subject to VAT into two payments. The first is payment of the amount of VAT arising under the invoice to a special VAT account established by the supplier, while the second is the net sales price, which is paid to the supplier's usual bank account or settled in some other way.

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