Obligatory Split Payment

Split payment was introduced on July 1^st, 2018. Currently it is fully for volunteers. From November 1^st, 2019, the majority of entrepreneurs will still have choice. However, in some cases split payment will be obligatory.

Transactions for Which Split Payment is Obligatory

Pursuant to Article 108a sec. 1a of the amended Act on VAT, only tax payers paying for the goods or services determined in the Appendix no. 15 to the Act on VAT (only one item on the invoice which is included into the appendix will be enough), will be obliged to make split payment, if the value of the transaction exceeds the amount of PLN 15,000 gross. It is highly recommended to get familiar with that list, but generally speaking it can be said that split payment will concern transactions for which currently the reversed VAT applies. In case of other goods and services or when the value of the transaction is lower than PLN 15.000 gross, split payment will still be for volunteers.

In the situations indicated above, split payment will be obligatory only for new invoices – if the tax obligation, delivery of goods or services and the invoice issuance, are after October 31^st, 2019.

What is split payment?

According to the Act on VAT, split payment application is:

• payment of the tax amount determined on the received VAT invoice, onto the VAT account;
• payment of the amount reflecting the goods or services value determined on the received VAT invoice, onto the bank account.

Making the money transfer, the dedicated money transfer type offered by the bank, should be used and the following data should be given:

• fee reflecting the tax amount resultant from the invoice which is to be paid by split payment;
• fee reflecting the gross value of sale;
• the invoice number which is being paid;
• tax identification number (NIP) of the supplier.