Poland introducing new tax regime - Split VAT Payment

Poland is losing millions of polish zloty every year. The reason is inadequate tax collection system. As the result, at the beginning of 2018 Polish Govermanet introduce new VAT frauds reduction mechanism. Split VAT Payment Poland voluntary system will change the VAT collection regime. The essence of change is that payment for goods or services will be executed in two ways: net value may be normally paid to the supplier`s bank account, while the value of VAT may be paid separatelly – to special VAT bank account.

New VAT payment mechanism

As there is no obligation to use this form of settelments, Polish Govermanet prepared several solutions which should help to encourage the tax payers to split VAT payments. According to new regulation there will be several amenties for seller and buyer: no sanctions for the taxpayers in Customer role for incorrectness VAT settelments, lack of joint and several liability with the supplier for the unpaid taxes, no increased interest on arrears in VAT, option of reducing by seller the amount of VAT, accelerated return date of the excess VAT charged. Split VAT payment Poland will faced in July 2018.