Poland Extends Mandatory Split Payment Mechanism to Combat VAT Fraud Until 2028

• The split payment mechanism in Poland is extended until 2028 to combat VAT fraud.
• Introduced in 2018 and mandatory since 2019 for high-risk transactions.
• VAT portion of payments is separated and deposited into a restricted VAT account.
• EU Council approved the extension through February 2028.
• Applies to B2B transactions with invoices over PLN 15,000 and goods or services listed in Annex 15.
• Legal basis is the Polish VAT Act, specifically Article 108a and Annex 15.
• Aims to prevent VAT fraud, especially carousel fraud.
• Mandatory for transactions meeting specific conditions.
• EU approval required for deviation from standard EU VAT Directive.

Source: polishtax.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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