Split Payment Mechanism - Bank Spółdzielczy w Szczytnie

As of July 1, 2018, the Act of December 15, 2017 on amending the Act on Goods and Services Tax and certain other acts, introducing the split payment mechanism (English: Split Payment), came into force.

Link to the act: http://prawo.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20180000062

What does it mean?

• The Cooperative Bank in Szczytno has opened a special bank account for each entrepreneur holding a settlement account in PLN - the so-called VAT Account;
• The Cooperative Bank in Szczytno automatically opened one VAT Account for each Client holding one or more settlement accounts in PLN in the Bank, even if they do not settle VAT. At the request of a Client holding more than one settlement account, the Bank can open additional VAT Accounts;

NOTE: According to the Act, the split payment mechanism does not apply to individual clients.

From July 1, 2018, Clients of the Cooperative Bank in Szczytno can make transfers using two options:

• the traditional method,
• using the split payment mechanism when paying for an invoice that includes VAT;

VAT Account at the Cooperative Bank in Szczytno:

• automatically opened for maintained settlement accounts;
• without the need for a separate agreement or annex to the agreement concluded with the Cooperative Bank;
• without any fees and commissions for opening and maintaining the account;
• conducted in PLN;
• all operations are confirmed by bank statements. Statements are prepared with the frequency indicated by the Client in the manner and on the terms agreed with the Bank, similarly to other settlement accounts;
• the information about the NRB number is available in the electronic banking system or at the Bank's branches;

Transfers under the split payment mechanism:

• using a dedicated message indicating:
• the invoice number related to the payment,
• the contractor's NIP number,
• the gross amount of the invoice,
• the VAT amount,
• the execution of the split payment from the settlement account in the gross amount with a simultaneous transfer of the specified VAT amount from the VAT account (up to the amount of funds available on the VAT account);
• the receiving bank of the above transfer credits the gross amount to the settlement account of the invoice issuer specified in the transfer and then transfers the VAT amount to the dedicated VAT account linked to the respective settlement account;

VAT TRANSFER

Disposing of funds in the VAT account:

• transfer corresponding to the VAT amount to the Client's suppliers;
• transfer between your own VAT accounts within the same bank;
• VAT payment to the tax office;
• withdrawal of funds from the VAT account for other purposes based on the decision of the Head of the Tax Office.

Split Payment Mechanism – Questions and Answers: