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Information about the split payment mechanism

We would like to update you on the current status of the Bill on Amending the Goods and Services Tax Act and Certain Other Acts (also known as the “Split Payment Act”).
The new law will enter into force on 1 November 2019.

Under the new regulations firms will be obliged to use the split payment mechanism:

  • when paying invoices worth at least PLN 15,000.00 or its equivalent in another currency,
  • when paying invoices concerning the goods or services specified in Appendix No. 15 to the Act,
  • when paying advances - in this case the use of a split payment will depend on the amount of the relevant invoice or the total amount of several invoices paid together.


The lawmakers acknowledged firms’ remarks and allowed them to make one payment for several invoices issued by the same supplier for a period of at least one day and not exceeding one month.
In addition, firms will be able to use their VAT accounts to pay liabilities on account of:

  • PIT, CIT and excise duty,
  • customs fees and
  • contributions to the Social Insurance Institution (ZUS).


To check if a payment was made from a VAT account, we have changed the 368 and 369 transaction codes.

369 transaction code:

  • In the settlement account: 369 Transfer from VAT account; from account: {VAT account number}; Reason: {Payment details}; TNR
  • In the VAT account: 369 Transfer from VAT account; to account: {settlement account number}; Reason: {Payment details}; TNR

368 transaction code:

  • In the settlement account: 368 Transfer to VAT account; to account: {VAT account number}; Reason: {Payment details}; TNR
  • In the VAT account: 368 Transfer to VAT account; from account: {settlement account number}; Reason: {Payment details}; TNR


In accordance with the Act, activations and repayments of products based on receivables purchase (receivables discounting, payment for liabilities) are treated like payments for invoices. Therefore, activations and repayments of these products will be effected with the use of the split payment mechanism.
We will keep you informed of the status of work on introducing changes arising from the Act.
 

Categories:

SME and Corporates