As a reminder, the split payment is a mechanism whose basic assumption is the splitting of payments for delivered goods and services into the net amount and the amount of VAT, which will be paid to the supplier’s separate accounts at the bank: a current account and an additional VAT account. Subsequently, using this account, a counterparty will pay their liabilities related to tax on goods and services, resulting from invoices received from their suppliers, and to tax authorities.
Until now, the decision to join the mechanism was to be taken by the buyers who received an invoice with an indicated amount of tax. The participation in it was formally voluntary, however the legislation introduced a number of benefits of applying the split payment mechanism to encourage entrepreneurs to use it. These benefits include: obtaining a VAT refund on the VAT account within a shorter period, a reduction in the amount of tax payable in the event of paying VAT from the VAT account before its due date.
Who is obliged to apply split payment?
The split payment must be applied when all of the following conditions are met:
- the tax obligation, the delivery of goods or ...