Comments on T-689/24: Polish VAT Deduction Rules Illegal: Landmark Win for Taxpayers and Businesses

• 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

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General Court T-689/24 (Dyrektor Krajowej Informacji Skarbowej) – Judgment – VAT deductible for the right period if you get the invoice before filing – VATupdate

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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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