Right to VAT Deduction When Invoice Available Before Tax Return Submission: New 2026 Case Law

Removal of Judgments and Invoicing Method Application: In the 2026 edition, references to three specific judgments regarding the invoicing method have been removed as they duplicate an existing ruling. The invoicing method is primarily applicable for entities that regularly post invoices in their accounting records and is the default method for VAT reporting unless special conditions apply.
Accounting Principles and VAT Reporting: Under the invoicing method, both output and input taxes must be reported based on when the corresponding invoices are issued or received. The main principle states that VAT is accounted for in the period when invoices are issued, while the delivery month principle allows for invoices related to supplies made in one month to be reported in that same month if received by the VAT return submission deadline.
Consistency in Accounting Practices: Consistent application of accounting principles is crucial, meaning that output and input tax must be reported under the same method. Deviations are permitted for minor amounts but must align with good accounting practices. Special rules exist for transactions such as advances or specific services like construction, which override standard invoicing methods.
This is supported by case T-689/24, Dyrektor Krajowej Informacji Skarbowej, point 38.