How to settle VAT and CIT on the purchase of CO2 emission rights in reverse charge mechanism

• Company Y purchased CO2 emission rights for 100,000 PLN net from a bank
• The purchase was made on an organized trading platform and documented with an invoice
• Company Y is engaged in VAT taxable activities related to the acquired CO2 rights
• The payment for the rights was made in full to the bank’s account
• Both Company Y and the bank are Polish tax residents
• Company Y should account for the purchase of CO2 emission rights in VAT and CIT on general principles for monthly periods
• The company’s tax year is the calendar year

Source: podatki.gazetaprawna.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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