- Split Payment, also known as Mechanizm Podzielonej Płatności (MPP), is a key element in the Polish tax system aimed at increasing transparency in VAT settlements and preventing tax fraud.
- Eurofiscalis specializes in accounting services in Poland, supporting clients in effectively implementing and managing MPP in practice.
- Split Payment is a VAT settlement system introduced in Poland to combat tax fraud and improve VAT collection.
- The mechanism involves splitting payment for an invoice into the net amount going to the seller’s standard account and the VAT amount going to a special VAT account.
- Split Payment aims to prevent tax fraud, increase transaction transparency, and improve VAT collection.
- Transactions subject to mandatory Split Payment include those exceeding a gross value of 15,000 PLN and involving goods or services listed in Annex 15 to the VAT Act, conducted between businesses via bank transfer.
- A VAT account is a special bank account required for using the Split Payment mechanism, used exclusively for collecting VAT funds.
- Funds in the VAT account can only be used for tax payments such as VAT, CIT, and PIT.
Source: eurofiscalis.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.
