Mandatory split payment for transactions over PLN 15,000 as of 1 November 2019 instead of 1 September 2019

On Friday 19 July 2019, the Sejm (the lower house of the Polish Parliament) adopted an amendment to the Act on VAT and the Tax Ordinance, which introduces a mandatory split payment of VAT and a new VAT rate matrix. It assumes that the mandatory split payment will become effective as of 1 November 2019 instead of 1 September 2019. The amended act will be sent to the Senate (the upper house of the Polish Parliament) and then to the President for signing.
The main assumption of drafted amendments is to replace the current specific mechanisms for VAT settlement, i.e. a reverse charge as well as joint and several liability, with a mandatory split payment.
The split payment mechanism will be obligatory in B2B transactions over PLN 15,000 or its equivalent, involving the supply of goods and services that are currently subject to the reverse charge mechanism as well as joint and several liability, i.e. among other, to fuels, steel and steel products, scrap and waste, precious metals (e.g. gold, silver, platinum) and non-precious metals (e.g. copper, lead). Besides, this obligation will cover goods such as tablets, processors, computers, hard drives, smartphones, game consoles, TV sets, radio receivers, cameras, digital cameras and construction services. Additionally, it will apply to payments for batteries, parts and accessories for motor vehicles and motorcycles, coal and coal products, electrical machinery and equipment, parts and accessories thereof, as well as wastes and secondary raw materials. The full list is specified in Annex 15 to the Act on VAT and it contains 150 items.

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