- The EU Court ruled that Polish regulations requiring an invoice to deduct VAT are incompatible with EU law.
- Taxpayers can now deduct VAT for the month the tax obligation arises, as long as the invoice is issued before the tax return is filed.
- The ruling allows for faster VAT deductions, improved financial liquidity, and less tax being frozen for businesses.
- The decision is expected to prompt changes in Polish law, especially important with the mandatory National e-Invoice System (KSeF).
- This is the first Polish tax case before the EU Court after judicial reforms, marking a fundamental shift towards VAT neutrality.
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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