Split payment in Poland is mandatory from November 1, 2019 for selected industries and services


From November 1, 2019 split payment becomes mandatory for so-called sensitive industries, i.e. exposed to tax fraud. This applies to 150 goods and services included in Annex 15 to the VAT Act, and covers:

  • steel products, precious metals, non-ferrous metals;
  • paper and cardboard waste, glass waste, scrap, recyclable materials;
  • electronics - among others: television sets, radio receivers, processors, smartphones, cell phones, tablets, netbooks, laptops, video game consoles, inks, toners, hard disks;
  • car fuels, heating and lubricating oils;
  • greenhouse gas emission allowances;
  • construction works;
  • carbon;
  • parts for cars and motorcycles.

Split payment is obligatory if the subject of transactions between entrepreneurs are goods or services listed in Annex 15 and the one-off transaction value, regardless of the number of payments resulting therefrom, exceeds 15,000 PLN or its equivalent in a foreign currency.

For other industries, including Transport Forwarding and Logistics the use of split payment is voluntary, which does not mean that it cannot be "forced" from them by large entities that regulate their obligations under the split payment formula.

The invoice documenting the delivery of goods or services covered by the mandatory split payment mechanism should include the endorsement 'split payment mechanism'. No such annotation will result in the determination of an additional tax liability of 30% of the amount of tax indicated on this invoice.

If it is determined that the buyer has not made the payment by split payment, when it was mandatory, the provisions provide for a sanction (additional tax liability) in the amount corresponding to 30% of the tax amount on the invoice to which the payment relates.

(based on PISIL news)