The European Union Council has authorized Poland to introduce a special measure to fight and prevent VAT fraud. Starting 1 March 2019 until 28 February 2022, Poland is allowed to introduce a special statement that VAT shall be paid to the separate and blocked VAT bank account of the supplier on invoices issued in relation to the supplies of goods and services susceptible to fraud. This split VAT payment mechanism will only apply to B2B supplies made by electronic bank transfers.
The mentioned separate VAT account of a supplier (taxable person) can be used for restricted purposes only, for example payments of the VAT liability to the tax authority or the payment of VAT on invoices received from suppliers.
Poland has already taken measures to avoid fraud, and this new mechanism to split VAT payments is another attempt to keep improving in that regards.
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