Split Payment Without Invoice Raises Concerns in VAT System Compliance and Business Practices

• Split payment aims to tighten the VAT tax system.
• Many taxpayers use split payment, but its application for advance payments is not clearly regulated.
• The mechanism helps control VAT-related cash flows.
• Taxpayers have limited access to funds in VAT accounts.
• Initially controversial, split payment is now widely accepted.
• It reduces disputes with tax authorities and ensures compliance.
• Businesses often use split payment for transactions between VAT-registered entities.

Source: podatki.gazetaprawna.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.