European General Court Issues Preliminary Ruling on Polish Input VAT Deduction Rules

The European General Court (EGC) Feb. 11 issued a preliminary ruling for Case No. T-689/24, on Polish input VAT deduction rules. The taxpayer, a Polish gas and electricity clearinghouse, deducted input VAT on gas and electricity purchases. The taxpayer received the purchase invoice in the tax period following the purchase’s tax period, but before the return filing deadline. The Polish tax authorities found that the deduction right arises upon receipt of the invoice. Upon request for a preliminary ruling, the EGC held that EU Directive 2006/112/EC on the common system of VAT, and the principles of neutrality and proportionality, must ...