European Commission Adopts Proposal for Council Decision on Poland Extending VAT Split Payment Mechanism

The European Commission (EC) Jan. 14 adopted Proposed Council Implementing Decision No. COM (2025) 7, authorizing Poland’s request to further extend a special measure derogating from the invoicing requirements of Article 226 of the VAT Directive, to continue applying a mandatory split payment mechanism on supplies of goods and services susceptible to fraud in the country. The derogation permits Poland to require suppliers to have a separate and blocked VAT account if the total gross amount of in-scope invoices (including VAT) is over 15,000 (US$3,624) Polish zlotys. The proposed decision includes measures to: 1) further extend Poland’s authorization for the ...