Split Payment (MPP) vs. factoring

Split Payment (split payment mechanism – MPP) is gradually reducing the liquidity of businesses. The effects of the introduction of voluntary MPP in November 2018 can easily be seen. Less than a year later, in October 2019, one in six businesses claimed that Split Payment was having a bad effect on their liquidity[1]. This is because some of the money they were previously free to use is blocked in the VAT account. Admittedly, it is possible to use the funds in this account, but only after submitting an application to the tax office – and the waiting time for a decision is up to 60 days.
Table of contents:

What is Split Payment all about?


Obligations and penalties arising from the introduction of the split payment mechanism (MPP)


How does Split Payment change the model of using factoring services?


Factoring in PragmaGO vs Split Payment



This is worth knowing about:


  • National e-Invoicing System – what is it and what is it based on?


    What is the National e-Invoicing System? What will it change and when will it be introduced?
    More: National e-Invoicing System – what is it and what is it based on?
  • księgowa prowadzi ewidencję kosztów finansowych dla firmy

    Financial income and expenses in the company’s operations


    Don’t miss any deadline and avoid penalties. Find out when to pay your PIT, VAT, Social Security and file your tax returns to have peace of mind in your business.
    More: Financial income and expenses in the company’s operations
  • Najważniejsze terminy podatkowe – PIT, VAT, ZUS i deklaracje

    Important tax deadlines – by when do you have to pay VAT, PIT or Social Security contributions?


    Don’t miss any deadline and avoid penalties. Find out when to pay your PIT, VAT, Social Security and file your tax returns to have peace of mind in your business.
    More: Important tax deadlines – by when do you have to pay VAT, PIT or Social Security contributions?