According to the Ministry of Finance, from 1 July this year a new Split Payment Mechanism will be introduced, called MPP or just Split Payment in polish. The payment for the purchased goods or services will be executed in two ways: the net value can be paid into a standard bank account, whereas the VAT amount for a special account – only for this purpose (banks are obliged to keep such accounts free of charge). MPP is to be another element of the process of sealing the Polish tax system and is expected to increase budget inflows by limiting VAT fraud and extortion.
What is Split Payment about?
– In accordance with the new legislation, it is possible to separate net and vat payment during a transaction.
– VAT amount will then be paid into an additional bank account, intended only for accumulating the VAT amount.
– The use of the Split Payment model is to be voluntary for now.
– It applies only to entrepreneurs who are VAT registered.
– The ability to dispose funds accumulated on the VAT account by the seller will be limited to paying VAT to the tax office or to its own suppliers only.
It is worth following how these regulations might change in the future, because it can have a significant impact on your business.
Integris proposes a comprehensive solution to implement these functionalities in Microsoft Dynamics AX (Dynamics 365) and automate related processes. Our solution provides tools for tracking tax paid using MPP, generating payment files and importing file statements – containing both incoming and outgoing payments made using MPP – in such a way as to enable the use of MPP and obtain the benefits resulting from it.
If you have any questions about Split Payment, SAF-T or GDPR – use the knowledge of our experts and contact us..