Annual adjustment of input tax in VAT and CIT based on sales structure

• Company X was registered as an active VAT taxpayer in October 2022.
• The company’s applicable CIT rate is 19%.
• The company provides training services and sells both tax-exempt and taxable services.
• The company’s purchases are proportionally allocated between these two types of activities.
• In 2023, the total amount of VAT deducted for both exempt and taxable sales was 45,000 PLN.
• The deductions included office rent, office supplies, software purchases, leasing services, and other goods and services.
• The initial proportion for 2023 was 40%.
• The company deducted a total of 18,000 PLN VAT based on this proportion in the monthly JPK_V7M reports.
• At the end of 2023, the company is required to make an annual correction in the JPK_V7M report for January 2024.
• The final proportion for 2023 is 42% (alternative variant: 38%).
• The company did not purchase any real estate, fixed assets, or intangible assets in 2022 and 2023.
• The correction of the deducted VAT should be made according to the sales structure for 2023 in terms of VAT and CIT.

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.