VAT cannot be recovered after the limitation period has expired

Unofficial translation

An entrepreneur who for seven years transferred the excess of input tax to subsequent settlement periods will not collect it after the expiry of the five-year limitation period – the Supreme Administrative Court ruled yesterday.

Justifying the judgment, judge Jan Rudowski drew attention to the jurisprudence of the EU Court of Justice , which shows that individual member states may set a deadline for tax deduction. He explained that if after the expiry of this period the tax authorities can not verify the validity of the VAT refund is also analogous taxpayer loses the right to realize their rights .

The judgment concerned the so-called indirect VAT refund, i.e. the deduction of an excess of input tax over the tax due in subsequent tax returns. The provisions of the VAT Act state when a taxpayer can apply for a refund of this surplus to a bank account, and when he has the right to reduce the amount of VAT due for subsequent tax periods. Many entrepreneurs who have the right to a refund, prefer, for example, fearing the control of the tax office, to transfer the surplus for settlement in the next month (or quarter). Experts refer to this as “rolling.”

Refund

VAT cannot be recovered after the limitation period has expired

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