- Receiving an advance payment creates a VAT tax obligation.
- Canceling a transaction and issuing a corrective invoice allows the seller to reduce the tax amount.
- The buyer must adjust the previously deducted input tax.
- If the contract is canceled but the advance is returned later or not at all, the tax obligation still arises.
- The tax obligation is linked to the date of receiving the advance payment.
- Exceptions exist for certain services where advance payments do not create a tax obligation.
- Advance payments do not apply to intra-community supply of goods and certain e-commerce services.
- Advance payments must be documented with an invoice.
Source: ksiegowosc.infor.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.
