VAT deduction from a “late” invoice in light of EU Case Law? Even the brave will have to wait a little longer…

We recently informed you about the EU General Court’s judgment in case T-689/24 (link), which brought groundbreaking news for VAT payers willing to rely on EU case law: if the invoice is available at the time of filing the tax return, it is possible to claim the VAT deduction already for the period in which the supply took place – even if the invoice was physically received only at the beginning of the following period.

The conclusion of our previous article was therefore that more courageous VAT payers could rely on the conclusions of EU case law in similar situations, even against the Czech VAT legislation. However, before these brave taxpayers had the chance to demonstrate their courage in practice, an unexpected development occurred.

The First Advocate General of the Court of Justice of the EU has submitted a proposal for a review of the General Court’s judgment.

What does this mean and what exactly is a review procedure?

Simply put, since October 2024, a new system for handling preliminary questions has been in place in the EU. Some of these questions, including those related to VAT issues, are no longer decided by the Court of Justice but by the General Court. At the same time, there is a safeguard mechanism for cases where a decision of the General Court could disrupt the uniform interpretation of EU law. This safeguard is the review procedure.

The First Advocate General has made use of this option in this case.

This is not surprising. The judgment may have implications not only in Poland, which is directly affected by the case, but also in other Member States, including the Czech Republic.

What does this mean in practice?

VAT payers who were planning to claim VAT deductions from late-received invoices will have to wait a while longer.

The Court of Justice of the EU will now decide whether to accept the proposal for review. If it does, it may confirm, amend, or annul the General Court’s judgment. Until then, it is not advisable to base practice on its conclusions — especially since the Czech VAT Act remains clear on this point: the VAT deduction can only be claimed in the period in which the taxpayer had the invoice available.

Our recommendation

Even for the most courageous taxpayers who are currently dealing with VAT deductions from invoices received at the beginning of the following period should, for now, proceed in accordance with Czech VAT Act — i.e. claim the deduction only in that following period.

However, we believe that there is a real chance that the General Court’s conclusion will be confirmed.

However, we still have to wait a while for the definitive conclusion of this story. We will carefully monitor further developments and keep you informed, as this is a topic that interests us professionally and which may have a significant impact on everyday practice.

If, in the meantime, you are dealing with a similar situation involving VAT deduction from a late-received invoice, feel free to contact us. We will be happy to assess your situation and recommend further action.