The EU has authorised Poland to extend its split payment system for VAT on 28 February 2025 under the Council Implementing Decision (EU) 2025/373 of 18 February 2025. The authorisation has been published in the EU’s Official Journal on 28 February 2025.
By letters registered with the Commission on 27 March 2024 and 1 October 2024, Poland requested authorisation to continue to apply the special measure until 29 February 2028, in accordance with Directive 2006/112/EC. Initially set to expire on 28 February 2025, Poland’s authorization for the split payment system is extended by three years to 29 February 2028.
Poland’s split payment system divides B2B payments to reduce VAT fraud. The VAT is deposited into a restricted account supervised by the tax authority, while the net amount goes to the supplier’s regular bank account.
Earlier, the European Commission (EC) published a proposal for a Council Implementing Decision on 14 January 2025, authorising Poland to extend its split payment system for VAT collection.