On 18 March 2021 the Court of Justice of the European Union (case C-895/19) confirmed that the Polish provision excluding the possibility of settlement of output VAT and input VAT in the same tax period after 3 months from the date on which the tax obligation arose is inconsistent with the VAT Directive.
What it means for VAT taxpayer?
If the taxpayer in the period as of 1 January 2017:
- performed:
- intra-Community acquisition of goods,
- transactions being subject to a reverse charge mechanism (including construction services),
- importation of services,
- was not able to settle the input tax within 3 months from the date the tax obligation arose, and therefore
- output VAT was settled retroactively and the input VAT was settled on an ongoing basis and, in consequence
- the taxpayer was obliged to pay tax or tax interest
– is entitled to correct VAT settlements according to the rules in force by 2017 and apply for the VAT refund to the tax authorities.
How ASB Tax may help?
- we will calculate and prepare corrections of VAT returns or support your accounting team in these activities,
- we will prepare an application for VAT refund,
- we will complexly support you in the VAT refund procedure to ensure a smooth refund process.
Feel free to reach out to us!
Łukasz Bączyk
Head of Tax, Board Member
E: lbaczyk@asbgroup.eu
Jarosław Szajkowski
Tax Manager – Tax Adviser
E: jszajkowski@asbgroup.eu
