VAT Deduction Right and Transaction Documentation Method – WSA Judgment

• The Provincial Administrative Court in Warsaw issued a ruling on June 6, 2024, regarding the right to deduct input VAT in the case of documenting a supply with installation using two final invoices.
• The case involved a company purchasing goods and services from a contractor in Austria who registered for VAT purposes in Poland in early 2022.
• The Austrian contractor issued advance invoices before VAT registration, followed by four more advance invoices after registration, and a final invoice in 2023.
• The final invoice referenced the advance invoices both before and after VAT registration.
• A second final invoice was issued on the same day, only including the VAT amount to be paid, as the net amount had already been paid for the advance invoices.
• Both the advance and final invoices related to a supply with installation in Poland.
• The company questioned whether the Austrian contractor correctly calculated Polish VAT on the invoices and whether they had the right to deduct input tax from all invoices.
• The National Tax Information Director confirmed that VAT on the four post-registration advance invoices was correctly shown, allowing the company to deduct input tax.
• However, the first final invoice was missing the VAT amount related to the pre-registration advances.
• Advance invoices, even if issued before VAT registration, are considered part of a specific transaction and should be subject to taxation.

Source: mddp.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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