The right to deduct VAT for the Intra-Community acquisition of goods

Starting on 01 January, 2014 the right to deduct VAT calculated for the Intra-Community acquisition of goods (WNT) arises on general rules. The taxpayer may deduct VAT in the settlement for the period in which, for goods purchased by the taxpayer, the tax liability arose.

However, it should be noted that in the case of the business does not receive an invoice for the goods within 3 months (from the end of the month when, in terms of the purchased goods, the tax obligation arose), in ten absence of an invoice, the business will be required to correct (reduced) the amount of calculated VAT. The receipt on this invoice at a later date, shall entitle the contractor (buyer) to increase the tax calculated accordingly.

The change of regulation in this possibility, have practical consequences for the taxpayer, namely:

1. Tax for the Intra-Community acquisition of goods can still be settled as VAT calculated within the settlement for the month the tax obligation arose. However, in the case of purchases in relation to which the business does not have the invoice at that moment – the deduction is in a way conditional. The taxpayer shall be obliged to verify whether in the period of three subsequent months, it received an invoice for such purchases from the foreign suppliers,
2. If in this time the invoice is received, the original settlement shall not be changed. However, in case it does not receive the document, then in the settlement for the month, when the 3-month period expired, the taxpayer shall be obliged to correct the calculated tax,
3. In case the business receives the invoice after the period, it shall be entitled to make the second increase in the calculated tax. It should be done within the settlement period in which the taxpayer received the invoice (systematically). Simultaneously, the method of stating the due VAT remains unchanged,
4. In case the taxpayer keeps receiving significantly late invoices, the transaction which was tax neutral, will become a temporarily taxable operation. The business shall be obliged to present the due VAT, without the right to deduct the calculated tax.