C-167/26 RX – will the CJEU correct the General Court’s taxpayer-friendly position?
The Advocate General's Opinion suggests that the right to deduct VAT should be assessed more strictly than the General Court's February ruling implied. Find out what this could mean for taxpayers awaiting the CJEU's final decision.
The Advocate General’s (AG) Opinion in case C-167/26 RX indicates that the right to deduct VAT should be assessed more strictly than followed from the General Court’s ruling issued in February this year.
The AG took the position that a taxpayer acquires the right to deduct VAT only once two required conditions are met:
- the supply of goods or services has taken place, and
- the taxpayer holds an invoice for that supply.
At the same time, the AG considered that national provisions may restrict the possibility of deducting VAT in the period in which the substantive conditions are met but the taxpayer has not yet received the relevant invoice — even if that invoice was received before the tax return was filed.
This position is notable in that, while it departs from market expectations that arose following the General Court’s ruling, it remains broadly consistent with the VAT provisions currently in force in Poland.
It is also a signal that the AG is taking a less liberal approach to VAT than some of her positions in recent years might have suggested (e.g. treating an agreement as an invoice if it meets certain conditions).
We now await the CJEU’s final ruling.