Split payment - SAP position


Split payment - SAP position

As of 1 July 2018, the Split Payment mechanism (split VAT payment) will become effective in Poland. Its use is voluntary, however, if one of the company’s contractors starts to use it, it becomes obligatory for both parties. In such a situation, the buyer pays the net value to the supplier's bank account for each transaction (goods/services) and the VAT amount is credited to a separate VAT account belonging to the supplier, which is also inspected by the tax authorities.

The mechanism itself aims to increase the transparency of VAT settlements and reduce fraud. One of the biggest advantages of using Split Payments is the reduction of the VAT refund time to 25 days for a VAT account or 60 days for a regular account.

SAP presented its position on Split Payment to Poland in note 2607042. The official solution is still in the pilot phase. Until the end of April this year, closed solution tests are being conducted for selected customers (SAP notes 2624533 and 2627169).

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