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New split-payment mechanism in Poland

Written by Irene Nuijten on . Posted in Exact Globe

From 1 July 2018, a new VAT system will be introduced in Poland, the so-called split-payment mechanism.

The split-payment mechanism applies to domestic B2B invoices in the PLN currency and means that the base amount and VAT amount of an invoice are split and transferred from/to a normal bank account and a blocked (VAT) bank account.

For this the banks have given every bank account holder a VAT bank account, that is “linked” to the normal bank account.

The payer determines if the split-payment mechanism will be applied. He or she still makes 1 payment and indicates in the payment file if it is a split payment. The bank then splits the payment and processes it, after which the seller receives the amounts on the separate bank accounts.

The solution in Exact Globe shall be made available for customers via a service pack for product update 415 by the end of June 2018 and 416 in the beginning of July 2018.

How it works in Exact Globe

By selecting the Split payment account option at the new Subtype field of the cash instrument, you can indicate that this cash instrument is your blocked (VAT) bank account.

In the payment conditions a new setting Use split payment account is introduced to indicate that the payment condition is used for split payments. In the new Own split payment account in the payment condition, your blocked (VAT) bank account can be selected.

When processing a payment for a purchase invoice with this payment condition, the payment file contains information that it is a split payment. After that the bank splits the payment and processes it.

First the VAT amount is deducted from the payers blocked (VAT) bank account and transferred to his normal bank account. Then the full invoice amount including VAT is transferred to the normal bank account of the receiver. His bank will then transfer the VAT amount from his normal bank account to his blocked (VAT) bank account.

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