by Dr Robert Lewandowski, attorney at law (radca prawny) at Derra, Meyer & Partners in Warsaw
As of 1st April 2018, an optional business VAT split payment system should be introduced in Poland which brings in particular the following tax requirement changes: (i) two different bank accounts will be required for invoice payments and (ii) benefits resulting from choosing VAT split payments. According to the Polish Ministry of Finance, the new law aims at simplifying VAT payments by taxpayers and at improving the stability of inflow generated from VAT. The split tax payment system will be voluntary and the taxpayer will decide finally which invoice will be settled by him/her using this system and towards which customer.
Generally, the split payment system foresees that one transfer (one payment) for acquiring goods or services will automatically be split between two bank accounts. The amount corresponding to the net value price of goods/services will be placed in a “settlement account” of the taxpayer and the amount of VAT will go to his/her “VAT account” and every VAT payer will be required to open two different bank accounts: a settlement bank account and a VAT bank account. Additionally, means allocated to the VAT account will be deemed as means still belonging to the taxpayer, however, the taxpayer will be limited within the disposal of these means – transfer of VAT to the tax office or payment of VAT resulting from VAT invoices received from his/her customer. It should be stressed that the proposed split payment system will not apply to transactions including consumers.
New tax provisions also include an incentive scheme addressed to the taxpayers who decide to implement this split system within their financial payment affairs and this contains the following: (i) exemptions from sanctions and from joint and several liabilities and (ii) an accelerated input tax surplus refund deadline within 25 days.
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