Abstract

The following article is a concise analysis concerning collection of VAT based on the split payment model being one of several ­alternative methods of collecting this tax the state treasury. The authors of this article present the view of the EU Commission on the traditional model of VAT collection in the light of constant efforts to establish an optimal tax solution to ensure balance between the administrative burden placed on taxpayers and the most favorable budgetary revenues for the state. Also presented are cases of countries in which the split payment model already exists and briefly describes the specifics of the split payment model in each of these countries. The article goes on to describe the voluntary and obligatory split payment mechanism in Poland which came into force on 1.11.2019. The authors do not present an opinion on whether or not the split payment model will work under Polish administrative conditions. It is unknown at this stage whether other European countries may be encouraged by the success or discouraged by the failure of the Polish model if considering the introduction of similar split payment methods into their legal systems.