Banks can block current company accounts, instead of VAT accounts

A business in arrears with VAT payments cannot send money to the tax office from the account used for VAT payments. The law allows banks to freely choose whether the execution will be carried out from its current account or from the VAT account. Therefore, current accounts of companies are usually blocked, which paralyses their functioning. A change in the law and clarification of regulations is urgently needed.

COMMENTARY by Zdzisław Modzelewski, supervisor of the VAT tax practice

Taxpayers should most of all remember about risk management, including tax risk. If a payment from the contractor is delayed, it is worth taking actions that may minimize certain adverse effects for the taxpayer, including, for example, applying to the tax office to split such a tax or tax arrears into installments. This allows postponing the "problem" for the duration of the proceedings and perhaps agreeing with the tax office such installments (repayment rules) that the taxpayer will be able to pay, even despite the lack of payment.

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