As of December 31, 2024, the right to deduct input VAT accrued in previous years will be barred.
On December 31, 2024, the following shall become statute-barred:
- the right to deduct input VAT which arose in 2020, and 2019 in the case of intra-Community acquisition of goods (ICA) and the reverse charge mechanism (RCh)
- liability due to the excess of output VAT over input VAT, where the payment obligation arose in 2019.
If the taxpayer fails to reduce the amount of output tax by the amount of input tax within the time limits specified in art. 86 sec. 10, 10d, 10e and 11, the taxpayer may, in accordance with art. 86 sec. 13 of the VAT Act, reduce the amount of output tax by correcting the tax return for the period in which the right to reduce the tax arose, but no later than 5 years from the beginning of the year in which the right to reduce the tax amount arose.
This provision shows that the input tax from which the right to reduce the output tax arose in 2020, and for ICA and RCh in 2019, may be settled by correcting the relevant declaration and submitting it to the Tax Office by the end of 2024 at the latest.
Important
According to Art. 59 § 1 point 9 in conjunction with Article 70 § 1 of the Tax Ordinance, the principle is that the limitation period is five years, starting from the end of the calendar year in which the tax payment deadline expired. This means that all liabilities arising from the tax due in 2019 (excluding December for which the due date is January 2020) expire by the end of 2024.
We recommend verifying whether all invoices giving the right to reduce the tax due by the input tax for the mentioned periods have been included in the settlements. Please also be informed that if you need to submit an application for overpayment, this application must be submitted by the end of the year. Submitting the application in the following year will result in its rejection (Art. 79 of the OP).
