- VAT split payment separates the VAT amount from the net price at payment, sending VAT to a designated account or tax authority to reduce VAT fraud, while preserving normal VAT reporting and reconciliation duties.
- In Poland, split payment applies to transfers in Polish zlotys between VAT taxpayers and is mandatory for invoices over PLN 15,000 that include at least one item from the listed sensitive goods/services in Annex 15.
- In Italy, split payment applies to eligible public-sector bodies and specified entities, and the regime has been extended until June 2029.
- Under split payment rules, buyers must make payments correctly, while suppliers may face restricted access to VAT funds, cash-flow pressure, or accumulated VAT credits.
- Businesses should ensure transaction eligibility, compliant invoicing, correct payment/currency handling, record reconciliation, staff training, and ongoing monitoring of national rule changes.
Source: vatit.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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