The split payment mechanism on an invoice below PLN 15,000 gross remains voluntary – even when the document includes goods listed in Annex No. 15 to the VAT Act, and even when the seller has included the annotation “split payment mechanism” on it. The form of payment is decided by the purchaser, who may settle the amount by an ordinary bank transfer to the contractor’s settlement account or use a payment message and split the net amount and the tax transferred to the VAT account. The obligation arises only once the threshold is exceeded, provided that all three conditions are met simultaneously.

Key information from the article

• Mandatory split payment arises only when the gross value of the invoice exceeds PLN 15,000, at least one item comes from Annex No. 15 to the VAT Act, and both parties are VAT taxpayers.
• An invoice for exactly PLN 15,000 gross does not give rise to the obligation because Article 108a(2) of the VAT Act refers to an amount exceeding this threshold.
• The Ministry of Finance allows the annotation “split payment mechanism” to be included on an invoice below PLN 15,000 gross – information beyond the mandatory invoice elements does not make the document defective.
• From 1 July 2021, the obligation to mark split payment in the JPK_V7 file was abolished, although the annotation on an invoice above the threshold remains mandatory.
• The absence of the required annotation means an additional liability for the seller amounting to 30% of the VAT amount relating to sensitive items, and in the case of a sole proprietorship, a fine of up to 180 daily rates.

When is the split payment mechanism on an invoice below PLN 15,000 voluntary?

Split payment becomes mandatory only when three conditions are met jointly, while below the PLN 15,000 gross threshold it remains at the purchaser’s discretion. Pursuant to Article 108a(2) of the VAT Act, the obligation arises when:

• the total amount due resulting from the invoice, i.e. its gross value, exceeds PLN 15,000,
• at least one item concerns goods or services listed in Annex No. 15 to the VAT Act,
• the seller and the purchaser are VAT taxpayers and the transaction is a domestic transaction.

An invoice amounting to exactly PLN 15,000 gross is not subject to the obligation because the provision uses the word “exceeds.” The threshold refers to the value of the entire document, not to the total value of the sensitive items. The mechanism applies exclusively to payments in PLN between settlement accounts – payment in cash, by card or by set-off does not constitute split payment.

Is the split payment annotation on an invoice below PLN 15,000 allowed?

The seller may include the annotation “split payment mechanism” on an invoice below PLN 15,000 gross and does not expose themselves to a penalty by doing so. Article 106e(1)(18a) of the VAT Act requires it only above the threshold, but the Ministry of Finance has confirmed that the regulations specify only the mandatory elements of an invoice. Additional information beyond this list does not violate the invoicing regulations, and the document does not become a defective invoice as a result.

The reason may be caution – if the invoice value is understated and the threshold is nevertheless exceeded after a correction, the earlier annotation protects the issuer against an allegation that the required marking was missing. However, the tax amount from an invoice paid using split payment is transferred to the VAT account, from which the funds may be used only for public-law liabilities, so marking all documents in this way freezes part of the incoming funds and puts pressure on liquidity.

What should be done with an invoice below PLN 15,000 marked as split payment?

An invoice below PLN 15,000 gross bearing a split payment annotation may be paid by the purchaser in any manner – by an ordinary bank transfer to the seller’s settlement account or by a split payment message, in full or in part. The split payment annotation on an invoice below the threshold merely informs the purchaser of the seller’s readiness to accept such a payment, and the absence of an obligation on the purchaser’s side also remains in place when the invoice includes goods listed in Annex No. 15.

Payment using the split payment mechanism may, however, be beneficial even when it is not mandatory. Transactions below PLN 15,000 involving goods listed in Annex No. 15 are subject to the purchaser’s joint and several liability for the supplier’s tax arrears, calculated from the first zloty, while voluntary use of the split payment mechanism excludes this liability. Payment using this method is also evidence of due diligence when the tax office challenges the right to deduct input tax.

Does the absence of a split payment annotation on an invoice release the purchaser from the obligation to pay using split payment?

The obligation to pay using split payment results from the provisions of the Act, not from the content of the document, so the absence of the annotation does not protect the purchaser from a penalty. A VAT taxpayer who receives an invoice with a total amount due exceeding PLN 15,000 gross without the required marking must independently check whether any sensitive item comes from Annex No. 15 and, if so, make the payment using a split payment message for the portion attributable to those items.

The roles of both parties are separate – the seller is responsible for marking the invoice, while the purchaser is responsible for the form of payment, and an error by one party does not release the other party from their obligation. The seller will avoid a penalty if the purchaser pays using split payment despite the absence of the annotation, while the purchaser will avoid a penalty if the supplier settles the entire tax amount from the invoice with the tax office. In other cases, each party incurs an additional liability amounting to 30% of the VAT amount relating to the sensitive items, and in the case of a sole proprietorship, a fine of up to 180 daily rates for the issuer and up to 720 daily rates for the purchaser. Payment by ordinary bank transfer of an invoice bearing the annotation excludes this expense from tax-deductible costs. The absence of the marking is corrected by a corrective invoice concerning the formal details or by a corrective note issued by the purchaser.

What does partial payment of an invoice using the split payment mechanism look like?

Partial payment of an invoice using the split payment mechanism consists in settling, under this mechanism, only the amount attributable to the sensitive items listed in Annex No. 15. The remaining part is transferred by the purchaser by ordinary bank transfer to the seller’s settlement account or also by means of a split payment message.

The payment message itself contains four fields:

• the VAT amount or part thereof,
• the gross sales amount or part thereof,
• the number of the invoice to which the payment relates,
• the supplier’s NIP number.

The wording “or part thereof” in the first two fields makes partial payment possible. For an invoice amounting to PLN 20,000 gross, where an item listed in Annex No. 15 has a gross value of PLN 6,150 and the tax on it amounts to PLN 1,150, PLN 6,150 is entered in the gross sales amount field, while PLN 1,150 is entered in the VAT amount field. The entire amount is transferred in a single bank transfer, and the separation of the amounts takes place on the recipient’s bank side – there is no need to know or include the VAT account number on the invoice.

Is the split payment marking in JPK_V7 still applicable?

From 1 July 2021, the obligation to use the split payment marking in JPK was abolished, although the annotation on an invoice above the threshold remains unchanged. The JPK_V7 structure provided for a separate code for transactions subject to split payment from 1 October 2020, but the taxpayer no longer marks either sales invoices or purchase invoices in the VAT records.

The differing information results from confusing two separate obligations. The first concerns the sales document and requires the words “split payment mechanism” – this obligation remains in force. The second concerned the records submitted to the tax office and has been abolished. Therefore, marking split payment in JPK has no significance for the correctness of the file, whereas omitting the annotation on the invoice still results in a penalty.

Frequently asked questions

Does an invoice for exactly PLN 15,000 gross require the split payment marking?

No, the provision concerns an amount exceeding the threshold, so the obligation arises only above PLN 15,000 gross.

Can the seller refuse to accept split payment for an invoice below the threshold?

No, the decision to split the payment is made by the purchaser, who does not need the issuer’s consent.

Is the split payment annotation on an invoice below the threshold a formal error?

No, the Ministry of Finance confirms that information beyond the mandatory elements does not make an invoice defective, so no penalty applies.

Do invoices subject to split payment have to be marked in the JPK_V7 file?

No, the obligation to use this marking in the records was abolished as of 1 July 2021.

Can only part of an invoice be paid using split payment?

Yes, the payment message allows the purchaser to specify part of the gross amount and part of the tax – the obligation covers the items listed in Annex No. 15.

Does split payment apply to an invoice from a foreign contractor?

No, the mechanism applies exclusively to domestic settlements between Polish VAT taxpayers carried out by bank transfer in PLN.

What should be done with an invoice above PLN 15,000 without a split payment annotation?

The purchaser checks whether the invoice contains items listed in Annex No. 15 and, if so, makes the payment using a split payment message despite the absence of the marking.