Invoices from which VAT cannot be deducted


According to Art. 86 sec. 1 of the VAT Act, to the extent that goods and services are used to perform taxable activities, the taxpayer has the right to reduce the amount of tax due by the amount of input tax. However, the legislator provided for a number of exceptions from this general rule, which were specified in Art. 88 sec. 3a of this Act.

Invoice issued by a non-existent entity

The VAT Act explicitly states that an entrepreneur who is an active VAT taxpayer does not have the right to deduct VAT from an invoice issued by a non-existent entity (Article 88 (1a)). No regulations explicitly specify which entity can be considered as such. At this point, the definition used by the Supreme Administrative Court in one of the judgments "A non-existent entity (...) is also an entity that creates formal appearances of existence, but does not actually participate in legal transactions."

VAT invoice issued by an entrepreneur who is not an active VAT payer

If an entrepreneur who is a VAT payer receives a VAT invoice from a non-VAT payable entity, he may deduct VAT from it. This position results from the judgment of the Provincial Administrative Court in Gdańsk, but it should be remembered that these are judgments in individual taxpayers' cases.

Invoices with different VAT values ​​on the copy and the original

This type of situation is regulated by Art. 88 sec. 3a point 1b of the VAT Act, which says that an active VAT payer cannot reduce the output tax (sale) by input tax (purchase) if the amount of VAT on the invoice copy is different from the one on the original.

Invoices documenting non-taxable or VAT-exempt transactions

This situation is referred to in Art. 88 sec. 3a point 2 of the VAT Act. The seller is responsible for using the appropriate rate on the invoice. Therefore, when he applies a different rate (23%, 8% or 5%) in a situation where the sale is exempt or not subject to tax on goods and services, the buyer is not entitled to reduce the tax due by its value, i.e. when the invoice contains an invoice with a rate of 23% and an exemption should be applied (or not included), then the buyer is not entitled to reduce the amount of input VAT.

The exception is when the buyer received an invoice with an incorrectly specified VAT rate, e.g. 5% VAT was included in the invoice instead of 23%. Then the buyer has the right to reduce the output tax by the input tax resulting from such an invoice. Restrictions in this regard apply to tax-exempt or non-taxable sales.

Several invoices documenting the same transaction

In a situation where the buyer receives several invoices documenting the same economic event, then he cannot deduct VAT from each of them. This state of affairs results from Art. 88 sec. 3a point 3 of the Act. The reasons for such errors can vary from computer program failure to distraction of the seller himself. If the buyer has deducted VAT from each of these invoices, then he must immediately correct this error by making a correction of the VAT declaration for the period in which these deductions were made. In this situation, no correction invoice is required, it is enough for the seller to mark the invoice as canceled.

Invoices not in accordance with reality

This type of situation is regulated by Art. 88 sec. 3a point 4 of the VAT Act, which says that they do not constitute the basis for a reduction in output tax and a refund of the tax difference or a refund of input tax, invoices and customs documents in the event that the issued invoices, corrective invoices or customs documents:

  • they state activities that have not been performed - in the part concerning these activities - in large part it is related to the so-called With "blank invoices", which refer to activities that have not been performed, then the buyer is not able to deduct VAT. However, when the invoice contains several items and only some of them have not been paid, the taxpayer cannot deduct the input VAT from this part.
  • provide amounts inconsistent with reality - in the part concerning those items for which the amounts are inconsistent with reality - the legislator meant here invoices containing more products than the actual amount, then the taxpayer can only deduct VAT in the amount in which he actually purchased.
  • confirm the activities to which the provisions of art. 58 and 83 of the Civil Code - in the part concerning these activities.

Invoices issued by the buyer

The taxpayer may not deduct VAT from an invoice or a correction invoice which he issued himself and which was not accepted by the seller (Article 88 (3a) (5)).

All regulations regarding the issuing of invoices by buyers can be found in § 6 of the Regulation of the Minister of Finance of March 28, 2011 on tax refunds to certain taxpayers, issuing invoices, their storage and the list of goods and services to which the tax exemption does not apply. goods and services.

False certificate from the vehicle inspection station

This issue is regulated by Art. 88 sec. 3a point 6 of the VAT Act, which says that if a certificate issued by a vehicle inspection station, necessary in situations specified in tax law, is inconsistent with the facts, then the buyer may not deduct VAT from the invoice documenting such an expense.

This provision mainly applies to trucks, the purchase of which, as well as from fuel, VAT can be deducted, provided that it meets the requirements set out in the Act. If the certificate from the inspection station is forged or untrue, the tax authorities may question the right to deduct VAT.

The above-described regulations also apply to duplicate invoices (Article 88 (3b) of the VAT Act).