VAT Transfer - Bank Millennium

About the product

VAT transfer is a kind of payment made with use of split payment mechanism.

In order to perform VAT transfers you need following information:

whole amount or part of the tax amount given in the invoice
whole or part of the amount gross
invoice number based on which you perform the payment
number which identifies the goods or services provider for tax purposes (in most cases it will be the NIP number)

You shall not split the payment - you make one transfer using dedicated transfer message, identifying the invoice number, supplier’s NIP number, gross amount and VAT amount.
VAT transfer, a payment with use of split payment mechanism is made in PLN.
For the purpose of executing a transfer Bank first of all debits your VAT account (as the buyer of goods and services) with the amount of tax on goods and services. Bank credits your settlement account with this amount - in keeping with the transfer message. Then Bank sends one transfer to the recipient’s bank from the settlement account.

In case of lack of funds on your VAT account for the indicated tax amount, in order to execute the transfer the Bank shall debit your settlement account with a lacking amount in order to perform a transfer in an amount corresponding to gross sale value stated in the transfer message.
After receiving the money, the bank, which keeps the buyer’s settlement account, shall debit this settlement account with the amount corresponding to the amount of tax on goods and services indicated by the VAT transfer sender and shall credit the VAT account, which is kept for this account, with this amount.

The VAT account will allow your company to make settlements in the split payment mechanism.