- The EU General Court issued a major decision on input tax deduction for VAT, clarifying when the right to deduct arises.
- The case originated from Poland, where the domestic tax authority and court held that deduction is only possible upon receipt of the invoice.
- The EU General Court ruled that input tax deduction can be claimed for the period in which the transaction occurred, as long as the invoice is received before filing the return.
- The decision emphasizes the principle of VAT neutrality and the immediate right to input tax deduction.
- This ruling may significantly impact how EU tax authorities and businesses determine the timing for claiming input tax credits.
Source: 1stopvat.com
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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