- The European Commission approved a three-year extension of the Polish mandatory split payment mechanism.
- The extension will last until February 28, 2028.
- The current derogation decision expires on February 28, 2025.
- The EU Council must approve the extension.
- The mandatory split payment mechanism was introduced in 2019 for payments related to invoices exceeding PLN 15,000 or its equivalent in foreign currency.
- The mechanism also applies to transactions concerning goods or services listed in appendix 15 to the VAT Act.
- Payment for transactions meeting these requirements must be carried out using the split payment mechanism.
- The net value is transferred to the supplier’s primary bank account, and the VAT amount is transferred to a special VAT sub-account.
- Failure to comply with the requirement may trigger penalties for the taxpayer and its Polish representatives.
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
