• Register
Return to: Home > News > RSM Global comments on VAT changes in Poland

RSM Global comments on VAT changes in Poland

The Polish tax authorities have announced that, with effect from 1 November 2019, Poland is introducing what is known as a Split Payments Mechanism (SPM). Non-resident businesses that are registered for Value Added Tax (VAT) will need to have a bank account in Poland, and will require an additional VAT bank account that is dedicated to receiving and making VAT payments, says RSM Global.

Under an SPM arrangement, the seller of certain goods must include some additional wording in its sales invoices, indicating that the sale is being made under this regime. When the purchaser comes to settle that invoice, it must select a particular banking document which notifies the bank that the payment they are making should be split between the net value and the VAT amount. The bank then credits the net value to the seller’s regular account and the VAT amount, which must be paid in Polish zloty, to the seller’s dedicated VAT account.

Funds in the VAT account may only be used to settle tax debts with the authorities. With a standard VAT rate of 23% in Poland, RSM Global warns this could represent a significant funding challenge for some businesses. The new rules will apply to business-to-business (B2B) transactions covering a limited range of goods and services.

Top Content

    HONG KONG NATIONALS: UNDERSTANDING VISA AND TAX WHEN MOVING TO THE UK

    Over 2 million Hong Kongers learned recently that they may soon be offered a route to UK citizenship following China’s introduction at the end of June of its controversial Security Law in the territory.

    read more

    SASB IMPLEMENTATION SERIES: COMMUNICATING ESG TO MAINSTREAM INVESTORS

    As part of a series of webinars, the Sustainability Accounting Standards Board (SASB) took a closer look at how to communicate ESG initiatives and progress to mainstream investors

    read more

    REPORTING AND COMPLIANCE: WHY WE NEED A DATA REVOLUTION

    Commerce no longer adheres to national boundaries: the largest international organisations to the smallest businesses operate in a global market. However, rules for corporate reporting and compliance do adhere to borders, write IMA’s Jeff Thomson and Liv A Watson

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.