VAT: Does the Date of Receipt of an Invoice Determine the Deduction Period?

On 10 September 2026, Advocate General Juliane Kokott of the Court of Justice of the European Union (CJEU) delivered her Opinion in Case C-167/26 RX, concerning a dispute between the Polish company I. S.A. and the Polish Tax Administration.

The case addresses a very practical question: in which tax period may a taxable person deduct input VAT where the invoice is received after the period in which the VAT became chargeable?

In particular, the case requires a distinction to be drawn between the arising of the right to deduct VAT and the period in which that right may actually be exercised.

A divergence between the General Court and the CJEU’s previous case-law

In its judgment of 11 February 2026 (T-689/24), the General Court of the European Union held that Polish legislation could not prevent a taxable person from deducting VAT in respect of the period in which the substantive conditions governing the right of deduction were satisfied solely on the ground that the taxable person had not yet received the invoice during that period, provided that it was in possession of the invoice before submitting the corresponding VAT return.

On 26 March 2026, the Court of Justice decided to subject that judgment to the exceptional review procedure in order to determine whether it affected the unity or consistency of EU law, in particular in the light of the judgments in Terra Baubedarf-Handel (C-152/02) and Aptiv Services Hungary (C-521/24).

In her Opinion of 10 September, the Advocate General considers that the General Court did indeed depart from the Court’s established case-law and proposes that the CJEU find that the judgment affects the unity and consistency of EU law.

VAT becoming chargeable & possession of the invoice

Relying in particular on Article 179 of the VAT Directive 2006/112/EC and the Terra Baubedarf-Handel case-law, the Advocate General proposes that the Court confirm that the right of deduction must be exercised in respect of the tax period in which the following conditions are met for the first time:

• the substantive conditions governing the right of deduction, including the VAT relating to the transaction having become chargeable; and
• the formal condition requiring the purchaser to be in possession of the corresponding invoice.

In practice, VAT generally becomes chargeable when the goods are supplied or the services are performed. It may, however, become chargeable earlier, in particular where a payment on account is made, subject to the conditions laid down in the VAT Directive. In such circumstances, the deduction also requires the purchaser to be in possession of the corresponding invoice for the payment on account or a document satisfying the applicable requirements.

The Advocate General therefore proposes that the Court rule that EU law does not preclude national legislation under which a taxable person may not deduct input VAT in respect of a tax period in which the substantive conditions governing the exercise of that right were already satisfied if that person had not received the corresponding invoice during that period, even where the invoice was received before the VAT return relating to that period was submitted.

What are the practical implications for businesses?

Subject to the final position to be adopted by the CJEU, the receipt of an invoice does not therefore determine the arising of the right of deduction, but may determine the period in which that right may be exercised.

In practical terms, a taxable person cannot deduct input VAT on its expenses until it is in possession of the corresponding invoice, even where the VAT has already become chargeable in the hands of the supplier and the substantive conditions governing the right of deduction have been satisfied. As regards its inclusion in the VAT return, the relevant period is therefore the period in which the invoice is received, where this is later than the period in which the right of deduction arose.

Although this rule may, in certain circumstances, delay the recovery of VAT by the purchaser, it may also be relevant where an invoice is received late. This issue is particularly important in the context of foreign VAT refunds. In Wilo Salmson France (C-80/20), the CJEU had already recognised, in the context of Directive 2008/9/EC, that VAT which had become chargeable during an earlier period could be included in a subsequent refund period where the invoice was received only at a later date. Businesses nevertheless remain subject to the specific deadlines and conditions applicable to VAT refund claims in each Member State.

In light of these rules, taxable persons should ensure that they receive compliant invoices promptly, in particular following a payment on account where VAT becomes chargeable at that time, or following the supply of goods or performance of services.

BTOBNICE assists businesses with their VAT compliance obligations across the European Union, as well as with the recovery of domestic and foreign VAT.

For further information, please contact our VAT experts at: contact@btobnice.com

Source: CJEU, Case C-167/26 RX, Opinion delivered on 10 September 2026.