- The EU Court ruled that the right to deduct VAT arises when the taxable transaction occurs, not when the invoice is received.
- Polish regulations tying VAT deduction to invoice receipt are incompatible with the EU VAT Directive.
- Businesses can now deduct VAT earlier if they receive the invoice before the tax return deadline, improving cash flow.
- The ruling may prompt companies to review and correct past VAT settlements, especially those dealing with large VAT amounts.
- The judgment has implications for the National e-Invoicing System (KSeF), potentially affecting how and when VAT deductions are processed.
Source: crowe.com
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.
Latest Posts in "Poland"
- Groundbreaking EU Court Ruling: Polish VAT Deduction Rules Must Align with EU Law, Favoring Taxpayers
- Finance Ministry Targets VAT Fraud: New Tax Law Proposal to Boost Tax Authority Efficiency
- EU Court: Poland Must Allow VAT Deduction for Invoices Received Before Tax Return Submission
- EU Court Rules Polish VAT Deduction Rules Illegal: Landmark Win for Taxpayers and Businesses
- Once You Start Issuing KSeF Invoices, There’s No Going Back—Even if Sales Drop Below the Limit
