Incorrect WNT tax base
Purchase of goods as part of intra-Community acquisition of goods (intra-community acquisition of goods) causes the buyer to settle VAT. For this purpose, he must issue an internal invoice that contains information about the tax base and the calculation of the VAT due. Their incorrect determination requires correction - the same rules apply to intra-tax corrections as to corrections of invoices in domestic trade. However, not all of them can be applied directly.
Reasons for incorrect tax value determination
- incorrect determination of the tax base
- correct determination of the tax base, but the use of an incorrect VAT rate (e.g. 8% instead of 23%)
In order to correctly calculate VAT on intra-Community acquisition of goods, you need to know how to determine the intra-community tax base. It is the purchase price increased by:
- taxes, duties, fees and other charges related to the purchase of goods, except for VAT
- commissions, costs of packaging, transport, insurance collected by the supplier from entities making intra-Community acquisitions.
The tax base may be reduced by granted rebates, rebates, discounts, etc.
Tax base adjustment
In order to settle VAT from WNT, an internal correcting invoice must be issued.The same rules apply as for normal credit notes.
Data that should be included in the internal corrective invoice:
- indication of "Correcting VAT invoice"
- data of the buyer and supplier of the goods, in this case the invoice does not have to contain information about the EU contractor's tax identification number
- the date of sale as well as the date of issue and the next number of the internal correcting invoice
- the name of the product to which the correction applies and the incorrect and correct amounts
- the amount of the increase or decrease in the tax base and the amount of VAT due after the adjustment
- the reason for the correction, e.g. using an incorrect rate, etc.
If the buyer has been charged with the costs related to the delivery of goods in connection with intra-Community acquisition of goods, this value must be included in the taxable amount of intra-Community acquisition of goods. Service tax cannot be accounted for separately.
This applies to situations where the buyer receives an invoice with a delay, e.g. for transport after receiving an invoice for the goods. Then we submit a correction of the declaration for the month in which we received the purchase invoice.
The tax authorities express the opinion that internal corrective invoices should be issued within seven days of the event / receipt of the document from the supplier or immediately after determining the incorrect tax base or the incorrect amount of VAT from intra-Community acquisition of goods.
Correction in the VAT-7 declaration
On the basis of the issued internal correcting invoice, a corrective declaration should be submitted, showing the amounts in the correct values.
The template of the declaration form (VAT-7) does not provide for separate items to show the intra-Community measurement in it. The correction of the declaration should be submitted on the same declaration form, with the information that it is a correction declaration.
In the declaration, the company should provide all the values indicated in the original declaration regarding purchases and sales, taking into account at the same time the tax base and the VAT due from WNT in the correct values (corrected). Then, you should settle the VAT in section E of the declaration, taking into account the entered values.
Moreover, if the correction of the declaration concerns the quarter for which the company has already submitted a VAT-EU declaration (summary information), it must also submit a correction of this declaration, showing the correction of the intra-Community value of the declaration.
Correction of summary information should be submitted on the VAT-UEK form (Correction of summary information on intra-Community supplies and acquisitions of goods). It shall only fill in the items corrected by specifying in the "was" item the data shown in the previously submitted summary information and in the "is" item of the corrected data.