- Poland enacted a split payment mechanism in 2019 to combat VAT fraud
- Customers purchasing supplies over a certain amount had to pay VAT into a separate account
- The mechanism was challenged in court, but the CJEU ruled it was compatible with the EU Principal VAT Directive
- The mechanism did not require VAT to be accounted for before submitting a VAT return
- HMRC in the UK is developing a proof of concept for a similar split payment mechanism, due by January 31, 2025
Source: taxscape.deloitte.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.
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