- The General Court of the EU ruled that Polish law requiring possession of an invoice for VAT deduction is incompatible with EU law.
- Taxpayers can now deduct VAT for the month the tax liability arises, as long as the invoice is issued before the tax return is submitted.
- The decision allows for faster VAT deduction, improved cash flow, and less frozen tax for entrepreneurs.
- The ruling is expected to prompt changes in Polish VAT regulations, especially with the introduction of the National e-Invoicing System (KSeF).
- This is the first Polish tax case at the General Court post-EU judicial reform, marking a significant shift towards full VAT neutrality.
Source: mddp.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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