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



What is Split Payment?

Can I still use factoring despite paying in Split Payment?

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