2025-05-05
Incorrect VAT Rate on Your Purchase Invoice?
Incorrect VAT Rate on Your Purchase Invoice? You May Still Deduct It – Even If the Seller Applied the Wrong Amount. The Polish tax authorities confirm that an incorrect VAT rate shown on a supplier’s invoice does not automatically disqualify the purchaser from deducting input VAT – provided that all other legal conditions for deduction are fulfilled. A recent example is the individual tax ruling issued on Nov. 15, 2024 (case: https://lnkd.in/d2htU_aF). An even more recent example (ruling in case 0112-KDIL1-3.4012.556.2023.2.KK) proves that the right to deduct input VAT may still apply even if the purchased goods or services should have been taxed at the 0% (preferential) rate yet were incorrectly charged at 23%.
Incorrect VAT Rate on Your Purchase Invoice? You May Still Deduct It – Even If the Seller Applied the Wrong Amount.
The Polish tax authorities confirm that an incorrect VAT rate shown on a supplier’s invoice does not automatically disqualify the purchaser from deducting input VAT – provided that all other legal conditions for deduction are fulfilled. A recent example is the individual tax ruling issued on Nov. 15, 2024 (case: https://lnkd.in/d2htU_aF). An even more recent example (ruling in case 0112-KDIL1-3.4012.556.2023.2.KK) proves that the right to deduct input VAT may still apply even if the purchased goods or services should have been taxed at the 0% (preferential) rate yet were incorrectly charged at 23%.
Legal Background:
Under Polish VAT law (Art. 88 of the VAT-Act), certain cases where input VAT deduction is restricted are listed exhaustively. They do not include a scenario where the supplier applied an incorrect VAT rate on the invoice (e.g. 23% instead of 8%).
This confirms a long-standing principle of EU VAT law: deduction rights are fundamental to ensuring VAT neutrality and cannot be limited without clear legislative basis.
Practical Implication for Your Business:
Both local and cross-border transactions might lead to misunderstandings in VAT rates – especially in sectors like logistics, construction, or digital services. Those rulings provide a degree of legal certainty for businesses operating in Poland:
If the purchase is linked to Your taxable activities,
the purchased goods/services were neither VAT-exempt nor subject to specific “standstill” regulations (like ban on VAT deduction on purchased accommodation or restaurant services), and
The invoice contains required formal elements,
the buyer retains the right to deduct input VAT, even if the VAT rate was incorrect.
How can you protect your business?
Verify the substance over form: focus on the nature of the transaction, not just the invoice layout.
Ensure your purchases are properly linked to VAT-taxable sales.
Don’t rush to self-assess the amount of deductible VAT – consult a tax advisor first.
Our team advises international companies on navigating VAT compliance in Poland and across the EU.
Reach out if your business faces issues with invoice corrections, tax audits, or intra-EU transactions.
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