Correction of a double issued invoice - what do you need to remember?

As a rule, each activity performed by an entrepreneur for the benefit of another economic entity should be confirmed by an invoice issued. In business transactions, there may be situations when an entrepreneur mistakenly issues two invoices documenting the same tax activity. In this article, we explain how a double invoice is corrected.

Two kinds of circumstances

Pursuant to the provisions of the Value Added Tax Act, if a legal person, an organizational unit without legal personality or a natural person issues an invoice in which it shows the amount of tax, it is obliged to pay it. Therefore, if the taxpayer documented the same taxable activity performed for the benefit of the contractor with two different invoices, as a rule, he is obliged to pay the tax shown twice.

It should be borne in mind that the correction of a double invoice depends on whether the invoice in question has been introduced into legal circulation or not. If the invoice has been delivered to the buyer, then it is introduced into legal circulation, which consequently makes it necessary to issue a correcting invoice. If, on the other hand, the invoice has not been delivered to the buyer, it can be corrected by cancellation.

Correction of a double issued invoice

In the case of double documenting of the same activity with invoices received by the buyer, the only possibility of correction is issuing a correcting invoice for one of these documents. Such an invoice should correct the turnover amount indicated in it to zero.

The correction of the double invoice should be made by reducing the tax base in relation to the base specified in the issued invoice with the tax shown, provided that the taxpayer has the tax declaration obtained before the deadline for submitting a tax declaration for the given accounting period in which the buyer of the goods or service recipient received correcting invoice, confirmation of receipt of the correcting invoice by the buyer of the goods or the service recipient for whom the invoice was issued. Obtaining confirmation of receipt by the buyer of the goods or the service recipient of the correcting invoice after the deadline for submitting the tax declaration for a given accounting period entitles the taxpayer to take into account the correcting invoice for the accounting period in which this confirmation was obtained. This exception applies accordingly in the event of a mistake in the tax amount on the invoice and the issuing of a correcting invoice to the invoice in which the tax amount higher than the due amount is shown.

Example 1.

The taxpayer sold the goods on May 15 and mistakenly issued two invoices documenting the same activity. He issued a correction invoice "to zero" and sent it to the buyer, who received the invoice correction on May 18. The taxpayer received the receipt on May 24. This means that he can include the invoice correction in his tax return for May.

Example 2.

The taxpayer sold the goods on May 15 and mistakenly issued two invoices documenting the same activity. He issued a correction invoice "to zero" and sent it to the buyer, who did not receive the invoice correction until June 20. The taxpayer received a receipt on June 27. This means that he can include the invoice correction in his tax return for June.

The form of confirmation of receipt of the invoice can be any, because the legislator has not stipulated any special method in the regulations. The only condition that must be met is an unequivocal statement that the recipient has received a correcting invoice. The acceptable methods include: a written confirmation of receipt of the corrective invoice made by the buyer, a copy of the signed original of the correcting invoice, a fax signed by the buyer of the original correcting invoice, a return confirmation of receipt of a letter or registered mail containing the original corrective invoice

Invoice cancellation

The institution of invoice cancellation is not regulated in any legal act, however, based on the developed practice and jurisprudence, it is assumed that there is also such a possibility. It is admissible under the pain of meeting two conditions, firstly, only the invoice issued in connection with a transaction that did not actually take place may be canceled, and secondly, only an invoice that has not been placed on the market may be canceled. In the interpretation of the Director of the Tax Chamber in Bydgoszcz of December 8, 2015 (reference number ITPP1 / 4512-926 / 15 / AJ) we read: if the invoices issued by the Company were not introduced into legal circulation, in this particular case - in the opinion of the local authority - it should be allowed to cancel these invoices, so the Company is not obliged to settle the resulting tax due.

Example 3.

On November 20, the taxpayer mistakenly issued an invoice for the sale, which did not take place with the VAT amount of 23%. The invoice has not been sent to the counterparty. The taxpayer has the option of canceling such an invoice or issuing a correcting invoice to it for zero.

Example 4.

On November 20, the taxpayer issued two invoices by mistake. The invoice has been sent to the contractor who deducted the input tax. The taxpayer cannot cancel the original invoice, but may issue a correcting invoice.