General Court Allows Earlier Input Tax Deduction If Invoice Is Available Before Tax Return Submission

• The General Court ruled that input tax deduction can be claimed as early as the period of supply if the invoice is available before the tax return is submitted, even if administrative interpretations differ.
• The right to deduct input tax depends on substantive requirements (such as being a taxable person and using goods/services for taxable transactions), not on the timing of invoice possession.
• Possession of a proper invoice is a formal requirement for exercising the right to deduct, but not for the right itself to arise.
• The Polish regulation requiring invoice possession during the supply period was found to violate EU VAT principles, as it imposes an unjustified additional substantive requirement.
• The judgment may allow for earlier input tax deductions and has implications beyond Poland, including for Germany.

Source: bakertilly.de

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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