The latest individual interpretation of the head of the National Revenue Administration Information dated 6 October 2020 entails the right of a taxpayer to deduct VAT from invoices received prior to registration. According to the National Revenue Administration Information, if a taxpayer, despite the formal obligation, has failed to register for VAT, but acted like an active VAT payer, it means that since the commencement of its activity it has intended to be an active VAT payer.
The head of the National Revenue Administration Information emphasised in the interpretation of number 0113-KDIPT1-3.4012.587.2020.1.KS that a taxpayer expresses its will to use the right for deduction by submission of a tax return; however, in order to effectively exercise the right the registration should be made.
The European Court of Justice has indicated many times in its rulings that the creation of the right of deduction does not depend on the fulfillment of registration obligation i.e. on the formal recognition of the taxpayer status by tax authorities.
Thus, if a taxpayer has purchased goods or services for the purposes of the activity subject to taxation, it has the right to deduct a tax calculated and shown on these invoices despite the failure to meet its obligation of formal registration. At the same time, in order to exercise its right of deduction a taxpayer has to remove the negative premise i.e. it has to make a retroactive registration for VAT, at the latest prior to the exercise of the right.