New regulations on the extension of Split Payment (Split Payment Mechanism) to new groups of goods and services went into effect today (1.11.2019), as we wrote about HERE. Mandatory MPP will apply when the FV covers an amount due of more than PLN 15,000 gross, the seller and the recipient are VAT taxpayers, the goods/services covered by the FV are listed in Appendix 15 to the VAT Act. In particular, the mandatory MPP applies to payments for: construction services, stretch film, tablets, smartphones, consoles, fuels, steel, steel products, scrap, waste, precious (e.g., gold, silver) and base metals (e.g., copper), motor vehicle parts and accessories, coal and coal products, electrical machinery and equipment and their parts and accessories. Mandatory MPP covers goods and services mainly covered so far by the reverse charge, i.e., the shifting of VAT liability from the seller to the buyer, or tax liability.
