It will be a revolution in VAT. The payment will transfered into two accounts: one net amount, the other – the tax itself. Initially, the budget will lose out on it, but over time the benefits will prevail. At the beginning, the split payment is to be voluntary. It is possible that later it will be mandatory, but the European Commission must agree.
The Polish government assumes that 20% of the country’s firms will make use of the new split VAT payment mechanism since the introduction planned for July till end-2018, the daily Puls Biznesu writes citing the Finance Ministry’s VAT department director Wojciech Sliz.
The buyer will only transfer the net amount to the merchant’s normal account. However, the equivalent of value added tax will be transferred to a special account – VAT account. Money collected on it will be the property of the seller, but access to them will be limited. The split payment mechanism can be used to regulate all of the liabilities as well as their parts.