CJEU – judgment concerning neutral deduction of input VAT on ICA – deadlines on potential actions to be taken by the taxpayers

On May 10, 2021 the judgement of the Court of Justice of European Union (CJEU) in the case C-895/19 was published in the EU Official Journal.

CJEU confirmed that the Polish VAT law which does not allow to neutrally deduct input VAT resulting from intra-Community acquisitions of goods (ICA) due to late reporting of output VAT (after statutory 3-month deadline) is against the EU VAT Directive. The ruling has impact on entities reporting intra-Community acquisitions in Poland as they may now be entitled to apply for a refund of unduly paid interest.

From the date of publication the deadlines to take specific actions in cases affected by the CJEU judgment started to run. Please be reminded that on the basis of the judgment taxpayers are entitled to:

  • Within 1 month from the date of publication – apply for the resumption (reopening) of tax proceedings ended with a final decision;
  • Within 3 months from the date of publication – apply for the resumption of administrative court proceedings concluded with a final judgment;
  • Within 30 days from the date of publication – apply for a refund of the overpayment with interest calculated from the date of its creation to the date of return. If the application is submitted after this deadline the overpayment will still be due, but the interest will be calculated from the date of its creation to the 30th day from the date of publication of the CJEU judgment.

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The alert presents the issues that we believe may be of interest to you. The information in the alert is of a general nature and it does not cover all changes resulting from the amendment of the VAT law. Before making any decision or action, as well as in case of any questions or concerns, please contact one of our tax advisors on +48222503100 (email:biuro@itadp.pl).

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