VAT Overpayments in Consumer Transactions: Will the CJEU Ruling Benefit Taxpayers? Insights from the Advocate General

• Taxpayers who have overpaid VAT in relation to consumer transactions have gained a new ally in the form of the Advocate General Juliane Kokott.
• The Advocate General stated that the practice of Polish tax authorities, which involves refusing to acknowledge overpayments, is inconsistent with EU regulations.
• Taxpayers have faced difficulties in obtaining refunds for overpaid VAT when the overpayment is due to the use of a higher VAT rate than necessary.
• The issue has affected taxpayers selling prepared meals and providing services in sports and recreational facilities.
• Tax authorities have relied on a resolution by the Economic Chamber of the Supreme Administrative Court, which states that overpayment does not occur if the taxpayer did not suffer a financial loss.
• However, this resolution has been questioned, and courts have increasingly distanced themselves from it in recent years.

Source: ksiegowosc.infor.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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