On 2 December 2025, the Court of Justice of the European Union ruled that the right to deduct VAT arises when a taxable transaction occurs, not when the invoice is received. The decision invalidates Polish rules that tie VAT deduction to invoice receipt, allowing businesses to claim VAT earlier if the invoice is received before the tax return deadline. The ruling is expected to improve cash flow for companies across the EU.
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VatCalc · about 18 hours ago
Poland’s Ministry of Finance has drafted a regulation aligning foreign VAT refund procedures with the KSeF mandatory e‑invoicing platform. The draft requires foreign businesses to reference KSeF invoice identification numbers in refund claims, with transitional measures for claims before 1 January 2026. EU and non‑EU businesses must provide KSeF references or supporting invoice documentation depending on availability.
EUbusiness · 4 days ago
Poland’s VAT regime requires businesses to file the JPK_V7 XML report by the 25th day of the month following the billing period, with a 12% annual statutory interest on late payments. Small businesses benefit from a turnover exemption that rises from 200,000 PLN to 240,000 PLN in 2026, while refund processing times are shortened to 40 days. Penalties include a 500 PLN fine per JPK error and a 14‑day correction window.
Global VAT Compliance · 16 days ago
Poland has extended the reduced VAT rate for specified fuel products until 15 May 2026. Regulation No. 573, published on 27 April, amends the application period and enters into force on 30 April 2026.
VatCalc · 17 days ago
Poland has reduced the fuel VAT rate from 21% to 8% effective 31 March 2026, with the cut extended until at least 15 May 2026. Parliament approved the changes on 30 March, to be implemented by 6 April. The move follows earlier 2022 inflation cuts and is part of a broader strategy to curb fuel price inflation amid the Iran conflict.
VatCalc · 28 days ago
Poland’s parliament is reviewing a draft bill to temporarily zero‑rate domestic food items, excluding imports, from 1 April to 31 December 2026. The proposal would reduce the current 5 % VAT on a defined list of staple foods to 0 %, mirroring earlier COVID‑era cuts. Imported food would not benefit from the relief.
VatCalc · 29 days ago
Poland’s Council of Ministers has drafted legislation extending the deadline for submitting the JPK_KR accounting file to 31 July 2026, moving it from the traditional 31 March CIT filing date. The new SAF‑T requirement will be phased in: large companies (sales ≥ €50 million) from 1 January 2025, other businesses with accounting records from 1 January 2026, and all remaining corporate or personal income taxpayers from 1 January 2027. The extension also simplifies authorisation, allowing existing e‑filing powers of attorney to be used for JPK submissions.
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Key Takeaways
The court held that the right to deduct VAT arises when the taxable transaction occurs, not when the invoice is received.
Polish regulations that tie VAT deduction to invoice receipt are incompatible with the EU VAT Directive, allowing companies to deduct VAT earlier if the invoice is received before the tax return deadline.
The ruling may improve cash flow by allowing companies to deduct VAT earlier, reducing the need to finance the state budget from their own funds for several weeks.
The ruling is EU-wide, affecting all EU member states, but it specifically addressed Polish regulations.
Primary source
Read the full article at CroweThis summary was published on VATfaqs.com on 13 February 2026. It relates to VAT developments in Poland. The original source is Crowe.
