Split payment

The split payment is a mechanism which was introduced in the Polish legal system with the Value Added Tax Act Amendment Act of 15 December 2017 (Journal of Laws of 2018 item 62), based on solutions used in other European countries (Czech Republic, Turkey, Romania, Italy). However, Polish solution is innovative in many aspects, using solutions that were not yet attempted elsewhere. For this reason in the first phase of operation the split payment system will be voluntary, and the Finance Ministry will be monitoring the effects of its introduction (not only fiscal impacts, we hope).

The introduction of a split payment mechanism has been discussed for a long time now. We wrote about it in June last year (20/2017). The new law was meant to be valid from 1 January 2018. Now we know it will be valid from 1 July 2018.