How to calculate exchange rate for VAT when issuing invoice in foreign currency? Subscribe now!

• Tomasz Krywan, a tax advisor and specialist in tax law, discusses the issue of issuing invoices in foreign currency before receiving a deposit
• The exchange rate to be used for VAT purposes when issuing an invoice before receiving a deposit is important
• The National Bank of Poland’s average euro exchange rate or the European Central Bank’s exchange rate can be used for VAT calculations
• The law states that when issuing an invoice before the tax obligation arises, the exchange rate should be based on the last working day before the invoice date
• This rule also applies to advance invoices issued before receiving full or partial payment or before delivering goods or services
• In the case of a euro advance invoice issued before receiving the deposit, the exchange rate should be based on the NBP’s average euro rate on the last working day before the invoice date or the EBC’s exchange rate for that day
• The legal basis for these calculations is provided in specific articles of the VAT Act of March 11, 2004

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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