- The CJEU ruled that Member States cannot postpone VAT deduction until the invoice is issued if the taxpayer has the invoice when filing the return.
- This decision contradicts previous case law and affects legislation similar to the Czech and Polish VAT Acts.
- The right to deduct VAT arises in the tax period when the supply occurs, provided the taxpayer possesses the invoice at the time of filing the return.
- The Czech tax administration’s response is still unclear, and taxpayers may need to rely on this judgment despite current Czech law.
- Until Czech legislation is amended, taxpayers may continue following existing rules, which could sometimes be beneficial.
Source: grantthornton.cz
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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