- VAT taxpayers may have additional obligations related to the tax, including the split payment mechanism (MPP).
- MPP can be applied voluntarily or obligatorily.
- MPP involves splitting the payment amount into two streams: the net amount goes to the business account, and the VAT amount goes to a special sub-account.
- MPP is mandatory for transactions involving sensitive goods listed in Annex 15 of the VAT Act.
- It applies to transactions between businesses with a gross amount of 15,000 PLN or more.
- Some businesses use MPP voluntarily to manage tax risk and improve transparency with partners.
- Funds in the VAT account can only be used in specific ways.
- Businesses should consult with accountants to decide on using split payment.
Source: ksiegowosc.infor.pl
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.
Latest Posts in "Poland"
- VAT Without Invoice Cannot Be Considered a Tax-Deductible Expense, Court Rules
- VAT Exemption for Ambulance Services: Not Limited to Disasters, Court Rules
- Developer’s Contribution to Water-Sewage Network Expansion Subject to VAT, Court Rules
- Museum VAT Deductions: Full for Commercial Use, Partial for Mixed Spaces, Court Rules
- Asian Gangs and VAT Fraud: How Europe Loses Billions Annually
