The possibility of applying the mechanism of split payment according to Polish law results from the act from 15 December 2017 amending the Goods and Services Tax Act. A payment for purchased goods or services with the use of the split payment mechanism is made in a total amount. Next, a relevant VAT amount is transferred by a bank to a separate account. As a result, the payment is divided into:

• sales subtotal amount which is transferred into vendor’s or service provider’s bank account
• tax amount which is transferred into vendor’s or service provider’s VAT account

The split payment mechanism may be used only in reference to transactions paid on account of other taxpayers. It can be used only for payments made by bank transfers in PLN.

The split payment mechanism is only available in the system if the parameter Split payment under Polish law has been selected from the level of Configuration → Company Structure → Rights Structure in the definition of a center of the Company type. The parameter is unchecked by default and it can be activated at any moment.

The system makes it possible to specify that by default payments with a given customer/vendor should be made in the split payment mode. A parameter enabling such configuration can be found on the <<customer group>> and the <<customer form>>.

It can be checked only if the following requirements are met:

• Customer status set as Entity
• Customer type set as Active taxpayer
• Payment currency set as PLN

In the system, it is possible to define a bank account that would keep record of transactions made only on a special VAT account associated with a current account. Ti do so, it is necessary to select the parameter VAT account for split payment on the form of a Bank account.

To make the parameter VAT account for split payment available for selection, the following requirements need to be met:

• Account currency – PLN
• Account type set as Bank
• Account sort set as Local

If the user selects the parameter, the system will block the possibility to change the account’s currency and types.

The list of cash/bank accounts contains VAT Account column (hidden by default) which indicates whether on the definition of a given register the parameter VAT account for split payment is checked.

Each split payment transaction consists of two entries:

• main operation for the entire total amount
• additional operation which posts a VAT amount between a current account and a VAT account

On the side panel of a bank transaction, there is a Split Payment control which, depending on the type of transaction, may assume one of the following values:

• No – it specifies that the split payment mechanism will not be used to pay for a given receivable/payable
• Payment – it specifies that the split payment mechanism will be used to pay for a given receivable/payable
• VAT Transaction – it tags marks the technical transaction of posting into a VAT account

In a transaction added to an account tagged as VAT account for split payment, the parameter is set automatically as Split payment: VAT Transaction without a possibility to change it and the value Is Not Subject is set in the column Payment with a possibility to change it.

On the lists Payment Estimate and Customer/Vendor Payments, the user may filter bank transactions related to split payment. For that purpose, the filter Split payment with the following values is available:

• <All>
• No
• No + Payments
• Payments
• VAT Transactions
• Payments + VAT Transactions

It is also possible to display the column VAT Amount (hidden by default) which presents VAT amount for bank transaction tagged as Split payment: VAT Transaction.

A payment for purchased goods or services with the use of the split payment mechanism is made in a total amount. Next, a relevant VAT amount is transferred by a bank to a separate account. As a result, the payment is divided into:

• a subtotal amount on an account selected by the vendor
• a VAT amount on the dedicated VAT account

In the side panel of a payment, Split payment parameter is available. Selecting it displays additional fields:

• VAT Amount
• Vendor’s/Customer’s TIN

The values of these fields are completed automatically on the basis of the source document.

The Split payment parameter is active in a payment window only if the payment is in the PLN currency. If a payment has the Split payment parameter selected, and the user wants to change the PLN currency, the system will display the message: “The payment is tagged to be made in the form of Split Payment. By changing the currency, the Split payment option will be blocked. Payments will be fixed as regular payments. Would you like to change the currency? Yes/No”. Selecting option Yes will change the currency into a different one, deactivate the Split payment parameter. Selecting the option No does not make any changes in the payment document.

The parameter Split payment is checked by default on a payment, if on its source document a payment form of Bank type is selected and on the form of the customer/vendor indicated on the source document, the parameter Split payment is checked. In addition, checking the parameter Split payment in an invoice header automatically checks the parameter Split payment in all payments of the document, if:

• Payment currency = PLN
• Payment form is of the Bank type
• The payment is not included in a SRO
• The payment is not completed

This rule regards payments of the documents:

• PI, PIQC, PIVC
• SI, SIQC, SIVC
• R, RQC, RVC
• API, APIVC, ASI, ASIVC
• VSI, VSIC, VPI, VPIC
• SO, PO
• SQ, PQ

In the case of payments for AN and OB documents, the parameter is always deactivated by default, with a possibility to activate it by the user.

In case of splitting payment marked as Split payment, the parameter Split payment will be automatically checked on newly created payments, with a possibility to change it. The system completes customer’s/vendor’s TIN number and VAT amount on new payments (proportionally to the payment amount) and updates VAT amount on the split payment.

If the user changes the VAT amount on a split payment into an amount lower than the VAT amount resulting from the source document and, then, divides the payment, the VAT amount on newly created payments will be completed automatically, whereas, it will not be updated on the split payment.

The user may change a VAT amount in a split payment. The threshold value is the difference between the VAT amount of the entire document and the sum of the VAT amounts of all other split payments in that document.

On the lists <<Payment Estimate>> and <<Customer/Vendor Payments>>, the user may filter payments of the split payment type and display columns presenting VAT amounts in such payments.

Split payment mechanism in the export of statements of remittance orders and import of bank statements Split payment

In the system, it is possible to export statements of remittance orders containing payments marked as Split payment and import bank transactions relating to split payment mechanism – payment transaction or transactions of posting VAT amounts.

Exporting statements of remittance orders

Payments of split payment type may be exported with the use of the same format as the other payment or with the use of a separately defined transfer format.

To properly handle a split payment transaction code, the user needs to modify a variable responsible for that transaction. For that purpose, it is possible to use the field Constant Value. Upon selecting this field in the format definition, it is necessary to edit it and fill in the field Split payment value with a relevant string of characters according to the requirements of a given bank.

The user may handle bank transfers connected with the split payment mechanism in one of the two ways:

• With the use of fields dedicated to split payment available in the transfer format definition
• With the use of the parameter Support split payment available for the field For

Handling transfers by means of dedicated fields

Fields contained in the transfer format definition which can be used to handle the split payment mechanism include:

• Split Payment – VAT Amount – a VAT amount to be sent from a payment
• Split Payment – TIN – a subject’s TIN transferred from a payment without hyphens and prefixes
• Split payment – document number – reference number from a payment

Parameter Support split payment

Another method of handling bank transfers related to the split payment mechanism uses the Support split payment parameter available in the transfer format definition for export in the case of the following fields:

• For
• For – Document Numbers
• For – Document Numbers and Amounts
• For – System Numbers and Amounts of Documents
• For – Document Numbers and Amounts

After selecting an appropriate field in the format definition, it is necessary to edit it and activate the parameter Support split payment. As a result, the system will automatically add the following string of characters before a transfer title in payments marked as split payments: /VAT/VAT Amount /IDC/Customer TIN /INV/Document number /TXT/Payment description

In a <<statement of remittance orders>>, in the Elements and Payments tabs, besides the standard columns, there are two columns available: Split Payment and VAT Amount. They inform whether a given payment is of the split payment type and present the value of a VAT amount to be sent for a given payment. The value of the column Split Payment is retrieved in accordance with the setting of the parameter Split payment in a given payment. The value of the column VAT Amount of a given SRO document is transferred from the payment. In case of changing of the transfer amount in an SRO document, the amount is updated automatically (proportionally to the transfer amount).

To enable the export of a payment of the split payment type, the following information must be provided in it:

• VAT Amount
• Customer’s/venord’s TIN
• Document number

Importing bank statements

When importing a bank statement, the user will receive two entries for transactions of the split payment type:

• entry relating to the main operation for the entire total amount
• entry regarding split payment operation which posts a VAT amount between a current account and a VAT account

While importing most bank statements with the use of the MT940 format and importing flat files, the column for will display the same content for both the main transaction and the technical posting of VAT between accounts. After a bank statement import, the system will automatically select the following parameters in the transactions:

• Split Payment: Payment – in main transactions
• Split Payment: VAT Transaction – in technical (VAT) posting transactions.

In transactions recognized as Split payment: VAT Transaction will be automatically assigned with the parameter Payment: Is not subject with a possibility to change it by the user.