In the latest tax ruling, the Director of the National Revenue Information answered the question whether the supplier performing the contract for the supply of goods listed in Annex 15 to the VAT Act with a gross value exceeding PLN 15,000, documenting the delivery of individual batches of goods covered by the contract with invoices whose gross value does not exceed PLN 15,000 is required to include on these invoices the annotation “split payment mechanism”? (DKIS interpretation of 28.01.2021 No. 0111-KDIB3-1.4012.923.2020.1.ICZ).

The interpretation concerned a company that supplies goods listed in Annex 15 to the VAT Act. The company concludes contracts for the supply of goods, the sum of payments resulting from individual contracts exceeds PLN 15,000 gross. The contracts provide for deliveries by installments. The release of each batch of goods is confirmed by a VAT invoice. The value of invoices confirming the delivery of a batch of goods may be lower than PLN 15,000 gross. Several days elapse between the delivery of individual batches. There are also situations when the contractor picks up the goods several times during one day.

The Director of the National Revenue Information explained that the provisions of the VAT Act refer to the value of the invoice, and not to the amount included in the contract between contractors. If the gross sales value of each issued invoice does not exceed PLN 15,000, the supplier will not be obliged to apply the split payment mechanism. Therefore, invoices with amounts below PLN 15,000 are subject to gross settlement, there is no obligation to include the annotation “split payment mechanism” on the issued invoices.

This is another of the positive tax interpretations that simplify the obligations of the supplier of goods in the scope of marking invoices in terms of the mandatory split payment.