2025-09-03
Advance invoices issued too early – a major change in the approach of the Polish Tax Administration
Advance invoices issued too early – a key change in Polish VAT practice On 23 July 2025, the Polish tax administration has published (ref. DOP7.8101.28.2025.FMLM) a revision to a ruling issued in 2017 which reshapes the treatment of prematurely issued advance invoices. Previous approach Article 106i(7) of the Polish VAT Act allows most invoices (with limited exceptions) to be issued up to 60 days before supply, performance of a service or receipt of an advance payment. Prior to 2022, the limit was 30 days, whereas before 2014 such an option did not exist at all. Those changes were welcomed by many firms, as some B2B clients (particularly larger companies in the construction sector) requested advance invoices even weeks before contractual payment dates. In other words: for some firms it was/is a “must have”.
Advance invoices issued too early – a key change in Polish VAT practice
On 23 July 2025, the Polish tax administration has published (ref. DOP7.8101.28.2025.FMLM) a revision to a ruling issued in 2017 which reshapes the treatment of prematurely issued advance invoices.
Previous approach
Article 106i(7) of the Polish VAT Act allows most invoices (with limited exceptions) to be issued up to 60 days before supply, performance of a service or receipt of an advance payment. Prior to 2022, the limit was 30 days, whereas before 2014 such an option did not exist at all. Those changes were welcomed by many firms, as some B2B clients (particularly larger companies in the construction sector) requested advance invoices even weeks before contractual payment dates. In other words: for some firms it was/is a “must have”.
Since 2014, if a taxpayer did issue an advance invoice earlier, and the payment was only received later (than 30/60 days), the Polish tax authorities treated such a document as if it was a “fictitious” invoice and required VAT to be paid under Article 108 of the VAT Act.
In practice, this often resulted in VAT being paid twice – once on the premature advance invoice and again upon actual receipt of the advance payment. Many businesses challenged this before the Polish administrative courts and frequently prevailed, yet the tax administration maintained its position for years. The only secure approach was to issue correction invoices immediately after the deadline had passed, allowing the correction to be reported within the same month (thereby offsetting the VAT to zero). What has changed?
The July 2025 interpretation clarifies that:
• an invoice issued too early is not automatically a “fictitious” invoice triggering VAT,
• if the invoiced advance payment is ultimately received, the VAT liability arises under the general rules, i.e. at the time of payment,
• the taxpayer may, but is not obliged to issue a correction “to zero”, just like many firms had done to avoid troubles,
• purchasers may deduct input VAT from such premature invoices, yet only after they settle the payments (i.e. VAT arises on the seller’s side).
Why this matters?
• No more risk of “penal VAT” solely due to a formality, where the delay in payment was often caused by the client, and not the invoice issuer
• Greater legal certainty for businesses issuing advance invoices.
• Relief for purchasers – VAT deduction remains possible (albeit only after actually settling the payment)
Important to remember
Issuing an invoice too early remains formally non-compliant under Polish VAT rules and such invoices should, in principle, be corrected. The difference now is that tax authorities apparently will no longer try to apply Article 108 if the underlying transaction eventually takes place.
This is a significant development for industries in Poland and a step towards aligning tax practice with business realities. Better late than never.
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