- The article explains that VAT creditors can use the “bad debt relief” to correct the taxable base and output VAT when an invoice remains unpaid.
- A debt is treated as likely uncollectible if it is neither paid nor transferred within 90 days after the payment deadline.
- To use the relief, the creditor must be an active VAT taxpayer the day before filing the return and the invoice must be no older than 3 years from the end of the year it was issued.
- For non-active-VAT debtors (consumers or VAT-exempt taxpayers), correction is possible only if the claim is confirmed by a final court judgment and enforcement proceedings, entered in a national debt register, or the debtor has consumer bankruptcy.
Source: pit.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.
Latest Posts in "Poland"
- KSeF Errors Require Corrections, Not Deletions
- Beauty and podiatry services continue to present VAT classification risks
- Housing cooperative’s separate rental of parking spaces subject to 23% VAT
- Customer acquisition may qualify as VAT-exempt payment intermediation
- VAT treatment of refugee accommodation payments remains unresolved
