Poland: Ordering party paying subcontractor must use split payment mechanism under VAT law (Supreme Administrative Court decision)
Supreme Administrative Court decision of September 26, 2025
The Supreme Administrative Court on September 26, 2025, held that when an ordering party (who is jointly and severally liable for payment with the contractor) pays a subcontractor, the ordering party must use the split payment mechanism under Article 108a(1a) of the Value Added Tax (VAT) Act (case file I FSK 1154/22).
Read an October 2025 report prepared by the KPMG member firm in Poland