New Split Payment Systems in Poland & Romania
In order to further combat VAT fraud, Poland and Romania have introduced a new Split Payment System that will go into effect in 2017 and 2018. This new Split Payment System means that two separate bank accounts will be opened for each VAT tax payer company; one specific VAT bank account and one regular business bank account. The Spilt Payment System means that the VAT registered supplier in these countries has to provide the customer with one bank account for net payment for the goods or services, and another bank account for payment of the related VAT. The purpose of the specific VAT account is mainly to be able to pay the VAT amounts into the suppliers VAT account, and to satisfy the VAT liabilities with the local tax authorities. So far, possessing two separate accounts is voluntary for the companies registered for VAT in Poland, however, in Romania, it will be mandatory.
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