- The annual VAT adjustment is required for businesses with mixed activities (both VAT-taxed and VAT-exempt operations), recalculating the proportion of deductible VAT based on actual yearly turnover.
- The adjustment corrects the difference between the preliminary VAT deductions made during the year and the final proportion calculated after the year ends, which can result in either an increase or decrease in deductible VAT.
- The adjustment must be reported in the JPK_V7 declaration for January 2026 (by February 25) or the first quarter 2026 declaration (by April 25).
- The type and value of expenses determine the adjustment method: ordinary costs and equipment under 15,000 PLN are adjusted once after the year; vehicles and machinery over 15,000 PLN are adjusted over 5 years; real estate is adjusted over 10 years.
- No adjustment is needed if the difference between the preliminary and actual proportion is minimal.
Source: kglegal.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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