Poland to Implement VAT Split Payment System to Counter Fraud

The Polish government has proposed draft legislation to amend the VAT Law to introduce a split payment system for value added tax (VAT). Such a system is meant to counter VAT fraud by splitting a payment so that the VAT due on an invoice at the time of payment would be directly deposited into a restricted VAT account and the net amount deposited in the supplier's normal bank account. As proposed, funds in the supplier's VAT account may generally only be used for settling VAT due with the tax …