NSA Ruling: Only Margin Counts for VAT Deduction Proportion in VAT Margin Scheme

• The Supreme Administrative Court (NSA) issued a precedent-setting ruling on VAT deduction proportion for entities using the VAT margin scheme.
• Only the margin value (excluding tax) from sales should be considered when calculating the VAT deduction proportion, not the total sales value.
• The court clarified that “turnover” in this context means the taxable base, which for VAT margin is only the margin amount.
• Entities using the VAT margin procedure cannot include the full sales value in their VAT deduction calculations.

Source: podatki.gazetaprawna.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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