- Taxpayers can reduce output tax by the amount of input tax for goods or services used in taxable activities.
- The right to deduct VAT is time-limited and can be recognized immediately or through a VAT return adjustment.
- Deduction is allowed in the period when the tax obligation arises, but an invoice is required.
- Polish regulations require the deduction to occur when output VAT is accounted for, but not before receiving the invoice.
- If deduction is not made in the first period, it can be done in one of the next three periods or two periods for quarterly settlements without correcting previous returns.
- Delayed invoices pose challenges for recognizing VAT deductions.
- Taxpayers must decide whether to recognize purchases immediately or adjust returns retrospectively.
- The deadline for recognizing delayed invoices is unclear and requires further analysis.
Source: crido.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.
