Split payment: first problems for one-person companies

Tidying up the tax system will certainly be beneficial on a macro level. However, for the smallest companies, including honest ones, it may result in temporary (hopefully) turbulence.

The 'spilt payment' split payment mechanism, in force since the beginning of the month, is already causing such disruption. And this could be just the beginning.

– Od 1 lipca duże firmy mogą stosować tzw. mechanizm podzielonej płatności VAT
- This has been painfully felt by their counterparties - one-person businesses using a personal account to conduct business
- Experts expect that male companies may face liquidity problems in the coming months due to this mechanism
- The ultimate effect will be greater transparency and tightness in the tax system

Split payment came into force on 1 July. As announced by the Ministry of Finance, the mechanism initially applies only to large companies. The snag is that the contractors of the largest ones are often small, single-source companies. And some of them are already in trouble; they are not getting paid for work done.

What is the issue? A part of the business community uses personal accounts for this purpose - contrary to the regulations - but so far without any particular consequences.

You can only use a personal account if you do not settle accounts with another trader and the value of your transactions does not exceed PLN 15,000.

The law introducing the split payment system catches these irregularities. With painful results for small entrepreneurs. Some of the transfers made by large companies to small entrepreneurs - sole traders - have been returned by the bank to the accounts of those sending the transfers.

This is the first and seemingly marginal problem with split payment.

The material appeared on wnp.pl:

5 July 2018:
" Split payment: first problems for one-person companies