Paying a pro forma invoice using MPP may protect the taxpayer – new interpretation from the Polish Tax Authority

Paweł Gorzelec
41 minutes ago
2 min read

A pro forma invoice is widely used in business as an informational or offer document. Even though it often resembles a VAT invoice, it does not have the status of a tax document and, as a rule, does not trigger any VAT consequences.

This distinction becomes crucial in the context of the split payment mechanism (MPP), especially when advance payments are made for goods and services listed in Annex 15 to the VAT Act.

When is split payment mandatory?

If the total gross value of a transaction involving Annex 15 items exceeds PLN 15,000, split payment must be applied — even if the seller did not include the “split payment mechanism” annotation on the invoice. This applies also to advance payments, provided the order value and subject fall within the regulated scope.

Failing to apply MPP may result in:

an additional tax liability of 30% VAT,
joint liability for the supplier’s VAT.

A breakthrough interpretation: MPP applied to a pro forma may protect the buyer

Historically, authorities stated that a pro forma invoice is not a VAT invoice; therefore, paying it via split payment had no protective effect.

The individual ruling issued on 3 July 2025 (0114-KDIP1-1.4012.458.2025.1.MM) changed this narrative.

KIS confirmed that when a pro forma includes Annex 15 goods/services, the buyer must pay the advance using MPP, and applying MPP may provide protection under Article 108a of the VAT Act, even if the document itself is not a VAT invoice.

This approach emphasizes the purpose of split payment:

funds go directly to the supplier’s VAT account,
the transaction becomes low-risk,
the mechanism prevents potential VAT fraud.

This is the first time tax authorities acknowledged that MPP can protect the buyer even when the document used is not a VAT invoice.

Implications

The interpretation:

strengthens taxpayers’ arguments in disputes,
may affect assessments of due diligence,
signals a shift away from strict formalism.

It does not change the law and is binding only for the applicant, but it clearly broadens the taxpayer’s defensive tools.

Pro forma vs advance invoice

A pro forma is never a substitute for an advance invoice. Once payment is received — including via MPP — the seller must issue an advance VAT invoice, which reflects the actual taxable event.