Draft amendments to the Act on tax on goods and services - split payment

On 16 May 2019, a bill amending the act on Value Added Tax and some other acts (draft of 14 May 2019) was amended, introducing, among others, obligatory split payment mechanism on selected goods and services.

The obligation to make payments in the split payment mechanism is supposed to apply to transaction

(i) of one-off value exceeding PLN 15,000 or its equivalent in foreign currency (regardless of the number of payments resulting from a given transaction), which
(ii) the subject are goods or services indicated in Annex 15 to the VAT Act (150 groups of goods and services determined in accordance with the Polish Classification of Products and Services (PKWiU) of 2008) (including construction works, scrap, steel products, cars components, computers, etc.).
Drafted provisions provide for a sanction of 100% of the amount of VAT shown on the invoice if, despite the obligation, a taxpayer fails to make payment for a given good or service using the split payment mechanism. Moreover, the buyer will not be able to include in the tax deductible expenses the purchase of goods / services in relation to which he has not fulfilled the obligation to pay using split payment.


The taxpayer is obliged to place on the VAT invoice documenting the delivery covered by the obligatory split payment mechanism the annotation "split payment mechanism" under pain of an additional obligation of 100% of the amount of VAT shown on the invoice.
The project has been presented to the consultation. The planned changes to the VAT Act are to come into force from September 1, 2019. Amendments to the provisions of the CIT Act and the PIT Act are to be effective from January 1, 2020.


The obligatory use of split payment can force changes in the applied settlement models in commercial transactions based on deductions, compensations, factoring, cashpool. For these reasons, it is reasonable to start the adaptation works now taking into account the new requirements in the scope of settling commercial transactions. Kancelaria DST Dąbrowski Szewczyk-Tomasiak Kancelaria Radców Prawnych Spółka Partnerska (Solicitor Office Professional Partnership) has all the necessary knowledge and experience guaranteeing adequate preparation of you for new duties.
In accordance with the decree of the ECJ activities involving the provision of fuel cards and negotiating, financing and settling the purchase of fuel using these cards constitute a financial service similar to granting a loan.