Lidia Adamek-Baczyńska, Monika Maćkowiak

If a person has more input tax than output tax, they can have the difference refunded or carried forward into the future. However, what if the person continues to record such differences also in future? Can the right to recover that amount ultimately become time-barred? The tax authorities do not have a uniform take on the issue. The Director of National Tax Information held in one if his tax rulings (ref. 0114-KDIP1-3.4012.744.2018.1.SM, 14 February 2019) that the five-year limitation period under Article 70 of the Tax Code applies also to excess input tax. However, that same authority held otherwise in its ruling of 4 November 2019 (ref. 0115-KDIT1-1.4012.619.2019.1.MM). The same matter was before the Supreme Administrative Court, which ruled on 14 January 2020 (case no. I FSK 685/19) to reverse the lower court’s judgment that was favourable for the taxable person and to remand the case for reconsideration. To avoid disputes with tax authorities, companies should deduct their excess VAT within five years or claim a refund.