The Court of Justice of the European Union (CJEU or the Court) recently ruled in the Polish E. Case1 that not being registered for VAT purposes or being subject to insolvency proceedings cannot be an obstacle for a reduction of a taxable base in the event of a lack of payment (bad debts adjustment). The resolution reached in this judgment was to be expected taking into consideration the court’s approach in its numerous decisions that have been rendered during a couple of previous years. The case seems to affirm a relatively coherent approach in case law leading up to the establishment of certain rules concerning bad debts adjustment in the field of VAT. This case note discusses those cases and summarizes the rules that were settled. The topic gains significance in times of restrictions connected with Coronavirus disease 2019 (COVID-19) in which many businesses have become insolvent and thus may not be able to pay their debts.