Comments on EGC T-689/24: EU Court Ruling Eases VAT Deductions, Boosts Business Cash Flow, Impacts e-Invoicing System

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.

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

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.