- Right to Deduct VAT: Taxpayers can deduct input VAT on purchases of goods or services used for taxable activities, but this right is time-limited. Deductions can occur in the period the tax obligation arises, contingent upon having the necessary invoices.
- Invoice Requirement: Current Polish regulations necessitate that taxpayers possess an invoice to claim VAT deductions. The deduction can only occur in the tax period when the invoice is received, emphasizing the importance of maintaining proper documentation.
- Delayed Invoices: If a taxpayer receives an invoice significantly later than the purchase date, they may still deduct VAT in the relevant period, provided they fulfill specific conditions. This includes meeting the tax obligation and having the invoice, but the deduction must be reported in subsequent accounting periods.
- CJEU Inquiry: The Supreme Administrative Court has referred questions to the Court of Justice of the European Union regarding the timing of VAT deductions when invoices are received after the tax liability arises, exploring the balance between legal stipulations and VAT neutrality principles.
- Future Considerations: The CJEU’s ruling may influence VAT deduction practices, potentially allowing earlier recognition of deductions if the invoice is received before the VAT reporting deadline, thereby improving liquidity for businesses. Regular reviews of VAT practices are recommended to ensure compliance and identify efficiencies.
Source: crido.pl
See also
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.
