From 1 November 2019, the split-payment mechanism will become mandatory in Poland. Under the split-payment mechanism, the net amount paid for the goods or services would be transferred to a regular bank account, whereas the VAT amount would be transferred to the so-called ‘VAT account’. The split-payment mechanism applies to the payment of invoices for selected goods and services which exceed a gross amount of PLN 15,000.
From the effective date, the mechanism is mandatory for certain categories of supplies such as the delivery of steel bars, mobile phones and waste collection. These goods and services are those that generally are accounted for under the reverse-charge mechanism. In addition, the mechanism will be applied to the following categories of goods: parts and accessories for motor vehicles, coal and coal products, and television sets.
Businesses should take the time to familiarise themselves with the changes and make provisions for adapting their invoicing accordingly. VAT IT can assist with ensuring compliance with these latest changes.