2025-03-10
Can a contract be a VAT invoice?
Contract as an Invoice? A New Perspective on VAT Formalities Recent Polish rulings confirm the position of the CJEU regarding the recognition of contracts as documents equivalent to VAT invoices.
Contract as an Invoice? A New Perspective on VAT Formalities
Recent Polish rulings confirm the position of the CJEU regarding the recognition of contracts as documents equivalent to VAT invoices.
In Case C-235/21, the CJEU stated that a written contract may serve as an invoice even if it does not meet all the formal requirements set out in the VAT Directive. The key condition? The contract must include the VAT amount, the applicable VAT rate (either explicitly or implicitly), and other essential details typically found on an invoice, without which the tax authorities would be unable to establish whether the substantive conditions for the VAT-deduction were satisfied.
The administrative court in Warsaw adopted a similar position on Nov. 7th, 2024 (case III SA/Wa 1498/24, ruling non-final). It emphasized that the substantive conditions for VAT-deduction take precedence over formalities, such as the possession of a document titled “Invoice.” It applied the principle of “substance over form”.
What Does This Mean for Businesses?
These rulings reinforce the primacy of the actual transaction over strict formalities. However, since they were issued in highly specific factual circumstances, businesses are advised to approach VAT-deduction with caution. It is important to remember that, in other cases, the CJEU has stressed the necessity of complying with formal requirements—such as in the case of triangular transactions, where the lack of certain clauses on an invoice made it impossible to apply a simplification scheme.
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