Within the extent that goods and services are used to perform the taxable operations the taxpayer is entitled to reduce the amount of the tax due with the amount of the input tax. The amount of the tax due is the sum of the amounts specified in the invoices received by the taxpayer in respect of the acquisition of goods and services. Sometimes, however, the invoice received by the taxpayer does not give the right to deduct the VAT. The taxpayer cannot deduct the input tax because of the formal invoice errors. The errors are as follows:
- Invoice from a non-existent entity,
- Invoices documenting the tax-exempt transactions,
- Several invoices issued for a single transaction,
- Invoices documenting transactions inconsistent with actual reality (in part regarding these activities). That provision concerns so-called “blank” invoices documenting the transactions that have never took place,
- Invoices issued by the purchaser,
- Fake certificate of the vehicle testing.