All for One Split Payment

Handling of split payment in SAP

Adjust SAP to handle split payment

All for One Split Payment, an extension prepared by All for One Poland, enables the SAP system to be adapted to support split payment.

The transfer orders generated in our solution meet the requirements related to providing mandatory data in the transfer message: an invoice number, a counterparty’s TIN number, a net amount and a VAT amount
All for One Split Payment is prepared both for the Payment Medium Workbench and for the classic program that generates payment media.
The solution enables the split payment to be handled directly from the SAP system, without significant changes in the processes of making outgoing payments and posting suppliers’ invoices
All for One Split Payment can be easily adapted to other payment formats.
All for One Split Payment allows you to process payments for multiple invoices using a single payment in a split payment format.
The solution enables domestic transfers to be made in EUR, with a simultaneous transfer of a VAT value to a VAT account in PLN.
The solution is designed for organizations that use: SAP ERP/ECC or SAP S/4HANA.

Split payment – its essence and legal basis

On 1 November 2019, the act of 9 August 2019 amending the Act on Tax on Goods and Services and certain other acts came into force, introducing an obligatory split payment mechanism for Polish VAT.

The Polish entrepreneurs can use the split payment since July 2018 – however, earlier participation in the mechanism was voluntary. As of November 2019, the split payment is obligatory for a large part of entrepreneurs.

The assumption of the mechanism is the splitting of payments for delivered goods and services into the net amount and the amount of VAT, which will be paid to the supplier’s separate accounts at the bank: a current account and an additional VAT account.

Subsequently, using this account, a counterparty will pay their liabilities related to tax on goods and services, resulting from invoices received from their suppliers, and to tax authorities.

The split payment must be applied when all of the following conditions are met:

the tax obligation, the delivery of goods or services and the date of invoice fall after 31 October 2019,
the gross value of the transaction is more than PLN 15 thousand or its equivalent,
at least one invoice item is covered by Appendix 15 to the amended VAT Act (this applies, inter alia, to the following industries: steel, fuel, scrap, electronics, gold, non-ferrous metals, plastics)
the seller and the customer are taxpayers (B2B transaction, regardless of whether the buyer is an active or exempt VAT taxpayer).