Poland I Mandatory “Split Payments” Launch Brought Forward to 1st September 2019

The Polish authorities recently published a draft proposal to introduce the mandatory split payment mechanism for selected goods and services in Poland, from 1st September 2019.

Initially Poland was authorised by the Commission to introduce this measure from 1st March 2019 but the Polish Ministry of Finance had postponed the measure to 2020.

Under the mechanism, businesses will be required to open a separate “blocked VAT bank account”, into which their customers must pay the VAT amount applicable to the bought goods and services. The money in this VAT account could be used to pay VAT to the tax authorities, to suppliers and to settle other tax liabilities.

This split payment procedure will apply to selected transactions above a value of PLN 15,000 that are paid for by means of bank transfers. Invoices for transactions covered by the new regime will have to mention “mechanizm podzielonej płatności” (split payment); otherwise penalties up to 100% of the VAT due will apply.  These rules will also apply to non-residents.

The measure will apply to goods and services falling under the 2008 Polish Classification of Goods and Services system (PKWiU). These include amongst others:

  • steel products, precious metals, non-ferrous metals;
  • waste, scrap, recyclable materials;
  • electronics, specifically: processors, smartphones, phones, tablets, net-books, laptops, game consoles, inks, toners, hard drives;
  • building and constructions services;
  • coal; and
  • sale of car and motorcycle parts.



All businesses that buy or sell supplies covered by the mandatory split payment mechanism should start to prepare now. They can do so by identifying how their transactions will be impacted and making any necessary changes to their ERP /accounting systems.

Considered an effective weapon against VAT fraud, the mechanism has a negative effect on a business’s cash flow as the VAT cash is removed from its account.  Contact our VAT experts now and find out how this change could affect your business.