The Regional Administrative Court in Gdańsk on 15 February 2022 issued a decision (case I SA/Gd 1240/21) allowing a taxpayer to submit a value added tax (VAT) correction enabling them to benefit from bad-debt relief.
Summary
- A taxpayer wanted to submit a value added tax (VAT) correction including the bad-debt relief, but the tax office challenged the correction because the taxpayer’s counterparty was in bankruptcy when they submitted the correction.
- The taxpayer invoked an October 2020 CJEU judgment (case file C-335/19) which held that the requirement that in order to use bad-debt relief the debtor cannot be in bankruptcy is inconsistent with Article 90 of Directive 112.
- Moreover, the initial correction was made within the statutory deadline set under Article 89a(2)(5) of the VAT law, with the subsequent correction being made at the tax office’s request.
Source KPMG
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