On July 1, 2018, the amendment to the Value Added Tax Act, introducing the so-called Split Payment has entered into force.
The essence of this solution, regulated in the new art. 108a of the aforementioned act is to enable entrepreneurs making payments for purchased goods or services to settle the net amount on the usual business account of the contractor, and VAT amount on a special dedicated account created for this purpose by the bank. Then, funds that are on the VAT account can be used by the account owner only for the payment of a VAT liability to the Treasury or for the payment of VAT to other entrepreneurs.
This mechanism is supposed to seal up the VAT collection system. It is voluntary, and the motivation for the payers to use it is the protection against responsibility for tax liabilities of an unreliable contractor.
The practical functioning of Split Payment can give rise to many doubts, especially concerning the permissibility of extorting the withdrawal from its application by economically stronger contractors.