The split payment mechanism (Mechanizm podzielonej płatności (MPP), split payment) involves separate payment for goods received or services rendered: the main part of the payment (excluding tax) and VAT.

The split payment mechanism (MPP) is based on the fact that the payment for the goods (services) is made by the buyer via a transfer (the so-called transfer message), divided into parts: the net amount and VAT. The net amount is credited to the seller's account, and the VAT amount is credited to his VAT account.

The VAT account is created by the bank automatically, as an additional account, to each current account opened in connection with the business activity.

The split payment mechanism can only be used by VAT payers who pay for transactions by transfer in zloty.

Depending on the value of the transaction and the type of relevant goods or services, split payment can be voluntary or mandatory.

The split payment mechanism cannot be used:

• by a person who does not conduct business, is a consumer,
• by an entrepreneur who receives invoices without the VAT amount, e.g. from taxpayers exempt from VAT,
• when paying in cash or by card.

A voluntary split payment is made by a buyer who is an entrepreneur, a VAT payer for the purchase of goods (services) from another entrepreneur when paying an invoice (invoice). When sending a split payment, a corresponding transfer message is sent, and the transfer is divided into two different accounts: a current account and a VAT account. The decision on how to split the payments is made by the buyer.

A mandatory split payment applies to VAT payers who:

• sell or buy goods or services, i.e. goods or services listed in Appendix 15 to the Act on Goods and Services Tax, and at the same time
• the total amount payable on the invoice, i.e. the gross value of the entire invoice, exceeds PLN 15,000.

Additional detailed information about MPP is available via links on the government portal, tax portal and in the following article.