The split payment mechanism, also known as split payment or MPP for short (mechanizm podzielonej płatności), is a way of settling invoices in which the amount due reaches the seller in two streams: the net value to an ordinary settlement account, and the VAT amount to a linked VAT account. For some transactions the use of this mechanism is voluntary, while for others it is mandatory. If you run a sole proprietorship and are an active VAT taxpayer, it is worth knowing when you must use MPP, what obligations fall on the seller and the buyer, and what sanctions apply for mistakes. Below we explain the rules in force in 2026.
What split payment involves
You make a split payment with a single transfer, using a special message in which you provide the gross amount, the VAT amount and the invoice number. The bank automatically splits the funds: the net amount goes to the seller's settlement account, and the VAT amount to their VAT account. The bank sets up such a VAT account automatically for every business account — without a separate agreement and without additional fees. Importantly, a private personal account (ROR) does not have a linked VAT account, which is why an entrepreneur whose sales are covered by mandatory MPP must use a business account.
When MPP is mandatory
The obligation to use split payment arises when three conditions are met together. First, the gross amount on the invoice is at least PLN 15,000 (or the equivalent of that amount). Second, the invoice includes at least one item from the goods or services listed in Annex No. 15 to the VAT Act — these include, among others, steel products, fuels, coal, vehicle parts and accessories, electronics such as phones, consoles, computers and processors, as well as construction work. Third, the transaction takes place between VAT taxpayers, that is in a business-to-business (B2B) relationship. If even one of these conditions is not met, there is no obligation, although the mechanism may be used voluntarily.
The invoice notation and the seller's obligations
A seller who issues an invoice for at least PLN 15,000 gross that includes goods or services from Annex No. 15 is required to place the notation „mechanizm podzielonej płatności” (split payment mechanism) on it. They must also enable the buyer to pay in this mode, meaning they must have a business account with a VAT account. In 2026, when the mandatory National e-Invoicing System (KSeF) covers the majority of entrepreneurs, this notation must also appear on the structured invoice. Importantly, if the seller forgets the notation but the MPP obligation exists, the buyer should still pay using the split payment mechanism.
The VAT account — what you can use the funds for
The money accumulated in the VAT account still belongs to the entrepreneur, but its use is limited to strictly defined purposes. You can use it to pay VAT from purchase invoices under the split payment mechanism, as well as liabilities to the tax office: VAT, PIT, CIT, excise duty and customs duty, and ZUS contributions. You cannot make an ordinary transfer for private spending from this account. To move a surplus from the VAT account to your current account and use it freely, you must submit an application to the head of the tax office, who has up to 60 days to decide. For many sole proprietorships this is a real liquidity issue, because funds in the VAT account are in a sense „frozen”.
Sanctions for mistakes
Ignoring mandatory MPP carries sanctions. If the seller does not place the required notation on the invoice, the head of the tax office may impose an additional tax liability of 30% of the tax amount attributable to the items covered by the mandatory mechanism. An analogous sanction — 30% — applies to a buyer who, despite the obligation, pays while bypassing split payment. The sanction can be avoided, among other things, when, despite the error, the supplier has accounted for the entire VAT amount resulting from the invoice. In addition, paying for goods or services from Annex No. 15 while bypassing MPP may mean the exclusion of such an expense from tax-deductible costs in income tax.
Voluntary MPP and its benefits
Even when split payment is not mandatory, it can be used voluntarily for any invoice — the buyer decides on paying in this mode at the moment of transfer. Paying via MPP offers several benefits: no joint and several liability for VAT not paid by the supplier, no increased interest on any VAT arrears, no additional liability (VAT sanction) on amounts paid under the mechanism, and a faster, 25-day refund of the VAT surplus to the VAT account. It is a simple tool that increases the security of transactions, especially with new or less familiar business partners.