The European Commission has published a draft of the decision authorizing Poland to introduce a mandatory split payment mechanism for the supply of certain goods and services. The annex to the decision defining the list of goods and services covered by these regulations contains 152 items.
Items 1-128 are, in principle, goods and services already covered by the mandatory reverse charge or the joint and several liability of the purchaser with the seller.
Items 129 to 152 include new groups of goods that have not been covered by the reverse charge or joint and several liability so far and may be subject to the mandatory split payment. They are mainly:
- coal, coke, briquettes,
- digital cameras, TV sets, computers,
- parts and accessories for cars and motorcycles.
According to the draft, the decision will apply from March 1, 2019 to February 28, 2022. However, the above does not mean that the mandatory split payment will for sure come into force from March 1, 2019. After the decision, Poland still has to introduce relevant regulations by amending the VAT Act.
Implementation of the mandatory split payment mechanism means that all companies, including those not established but conducting business activity in Poland, that sell goods or provide services covered by these regulations, will have to open Polish bank accounts, to be able to receive payments in split payment mechanism.
The full text of draft of the decision is available at this link.
