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:


  • Return of goods purchased for a company online


    Until the beginning of 2021, entrepreneurs were not allowed to return goods purchased for a business online. Who can make refunds now and when?
    More: Return of goods purchased for a company online
  • pracownicy w biurze obliczają stopę zwrotu i inne wskaźniki dotyczące inwestycji

    Internal rate of return (IRR) and investment profitability analysis


    What is the internal rate of return (IRR)? How to calculate it and what other indicators are worth keeping in mind?
    More: Internal rate of return (IRR) and investment profitability analysis
  • grupa osób w sali konferencyjnej negocjuje wykup firmy

    Buyout of a company – what is it and how to conduct a buyout of a company?


    What is a company buyout and how do you go about it? Learn about the different types of buyouts and walk through the process step by step!
    More: Buyout of a company – what is it and how to conduct a buyout of a company?