Corrections in JPK_V7 - everything you need to know!

Through the extensive JPK_V7 structure, entrepreneurs provide the office with a wide range of information about the goods and services sold and purchased. For this purpose, additional markings of documents, transactions and items of sale are used. Extending the scope of information provided by taxpayers is associated with a greater risk of making a mistake in the markings used. How in this case should you show the relevant corrections in JPK_V7? Let's check it out!

Types of corrections in JPK_V7

The structure of the JPK_V7 file is expressed in XML format and consists of two parts:

• declaration - in which the recognized amounts affect the amount of VAT paid to the tax office;

• registration - in which there are markings that do not affect the amount of tax due.

In connection with the above, the method of recognizing the correction in the JPK_V7 file depends on this:

• whether it is a correction shown only in the declaration part, only in the record part or in both parts at the same time;

• whether the adjustment reduces or increases the value of the tax due;

• whether the correction will be made after sending JPK_V7 for a given period.

If the entrepreneur is obliged to correct the record part or the record and declaration part of the JPK_V7 file, he can be protected against possible sanctions in this respect by the institution of the so-called active regret. A detailed discussion of the use of active grief in practice can be found in the article: Active grief for JPK_V7 - when should it be used?

Correction that does not affect the amount of tax

In a situation where the JPK_V7 file includes an entry containing errors not affecting the tax amount, for example:

• Contractor's tax identification number;

• contractor's name;

• sales receipt number

- the taxpayer has two options for making the correction. The choice of the correction method depends on whether the JPK_V7 file has already been sent to the office or not.If the entrepreneur detects an error before sending the JPK_V7 file, he may modify the data contained in the file, showing only one original entry with correct data.

However, when the error is detected after sending the JPK_V7 file, in accordance with the recommendations of the Ministry of Finance, it will be necessary to cancel the incorrect entry and include it again with correct data. In practice, this means that three entries for the same item will be shown in the corrected JPK_V7 file:

1. entry with incorrect data;

2. entry reversing incorrect data (negative);

3. entry with correct data (plus).

When adding a canceling entry, the original document number should be provided, and not the number of the invoice correcting the formal data or the correcting note.

Example 1.

In December, Mr. Łukasz issued an invoice with the number FV 1/2020 for the amount of PLN 1,000 for the contractor "XYZ". After sending the JPK_V7 file for December, he received a correction note from the buyer, which shows that the correct company name is "XYZ sp. Z o.o.". How should Mr. Łukasz include the received note in the JPK_V7 file correction?

Due to the fact that Mr. Łukasz received a note after sending the JPK_V7 file for December, and the contractor's name is subject to correction, he must apply a reversal (second method). Therefore, the following entries will be included in the correction of the JPK_V7 file:

1. FV 1/2020 - "XYZ" - PLN 100

2. FV 1/2020 - "XYZ" - PLN (-100)

3. FV 1/2020 - "XYZ sp. Z o.o." - 100 zloty.

In this case, only the record part of the JPK_V7 file is corrected.

Correction of the address of the buyer / seller does not require the correction of entries in JPK_V7, because unlike the previous JPK_VAT structure, the address of the buyer / seller is not shown in the new JPK_V7 file.

Example 2.

In December, Mr. Aleksander issued an invoice 2/2020 for the ABC company with its registered office at ul. Wrocławska 1. In the same month, he received a note correcting the company's address, because the registered office is at ul. Wrocławska 112. Is Mr. Aleksander obliged to correct the JPK_V7 file?

No, due to the fact that the contractor's address is not shown in the file structure, Mr. Aleksander is not obliged to include the correction in the JPK_V7 file.

Example 3.

On December 15, Ms Maria issued an invoice for company X worth PLN 500. The next day, the client pointed out that there is an error in his NIP and instead of 1111111111 NIP it should look like 1111111112. How should Maria include the invoice correcting formal data in JPK_V7?

Due to the fact that the JPK_V7 file has not been sent yet, Ms Maria may include in the record part of the file a record of the original invoice with the correct NIP of the buyer.

Example 4.

In October, Mr. Stefan issued an invoice with the number FV 3/2020 to the company Y for the amount of PLN 300. In December, it turned out that he had to issue a correction of formal data with the FK 1/2020 number due to an incorrect invoice number. The invoice should be FV 4/2020. How should Mr. Stefan correct the JPK_V7 file for October?

Due to the fact that the JPK_V7 file has been sent, a reversal entry should be made, i.e. the correction of the record part of the JPK_V7 file will include the following entries:

1. FV 3/2020 - company Y - PLN 300

2. FV 3/2020 - company Y - PLN (-300)

3. FV 4/2020 - company Y - PLN 300.

According to the information contained in the brochure of the Ministry of Finance regarding the JPK_V7 file, the numbers of sales receipts should be entered in the records in full in accordance with their original spelling. However, the case of letters does not matter - eg if the invoice number contains the # sign and the prefix Fv, it should be included in the invoice number in the JPK_V7 file, and the prefix can be written as "FV" or "fv".

Corrections related to markings used in the registration part of JPK_V7

In the JPK_V7 file, entrepreneurs provide the office with detailed information on concluded transactions, including:

• GTU codes - issued when the subject of sale are the so-called sensitive goods or services, i.e. those most exposed to VAT fraud;

• additional designations, the most specific of which should be:

• MPP symbol - for transactions covered by the split payment mechanism;

• designation FP - specifying the invoice for the receipt, which does not affect the amount of VAT due.

If the entrepreneur does not use the appropriate code in the submitted JPK_V7 file, then he is obliged to correct the JPK_V7 file. Failure to use the MPP designation for both purchase and sale transactions results in the obligation to correct only the record part of JPK_V7. Failure to use the FP designation obliges to correct the JPK_V7 file both in the registration and declaration parts. This is due to the fact that an unmarked sales invoice as an invoice for the receipt is included in the tax base and affects the amount of the tax liability shown in the declaration part of the file. However, after adding the designation FP, such an invoice does not affect the amount of VAT, because it is included only in the record part of the JPK_V7 file.

Codes and markings used for the purposes of JPK_V7 are not mandatory elements of the invoice printout. Therefore, the correction in this respect does not require informing the buyer about this fact.

Correction invoice marked with FP

Invoices for the receipt are not shown in the declaration part of the JPK_V7 file. This means that they do not affect the amount of the tax base. This is due to the fact that invoices are issued for fiscal receipts. On the other hand, receipt sales are shown with a collective entry based on a periodic report from the cash register with the indication RO. Thanks to this, the sale has not been doubled and thus it is not necessary to introduce entries correcting the amount of sale. Such invoices are included only in the registration part with the designation FP. They are for information purposes only and allow the offices to verify the way they are issued. In addition, they constitute a premise for the cross-checking of the correctness of recognition of the expenditure in the tax costs on the buyer's side. A detailed discussion of issues related to issuing invoices for receipts, based on examples, can be found in the article: Issuing invoices for receipts - changes in 2020. The Ministry of Finance recommends two ways to correct entries for sales invoices subject to the FP designation:

1. Correction invoice to the invoice with the receipt without affecting the declaration part.

If the taxpayer issues a corrective invoice to the receipt invoice, he may mark it with the FP designation and include it only in the record part. Then, the reduction of the recognized revenue from the cash register takes place on the basis of an additional entry that will increase or decrease (depending on the nature of the correction - in plus or in minus) the entry for the report from the cash register.

Example 5.

Mrs. Hanna issued an invoice to the receipt to a private person who did not conduct business. The buyer, however, returned the goods, and therefore Ms Hanna issued a correction to the invoice for the receipt. How should sales and correction in JPK_V7 be shown?

The receipt sale should be included in JPK_V7 with the indication RO on the basis of the cash register report (monthly or daily). Entries must be shown both in the registration and declaration parts of the JPK_V7 file. The issued invoice for the receipt should be included only in the record part of the file marked as FP.

When issuing the correction, Ms Hanna includes it in the JPK_V7 file in negative amounts with the designation FP. In addition, it is required to include the transaction in the register of returns at the cash register. The summary of the records should be shown in the record and declaration part of the file in the same way as the report from the cash register, i.e. with the RO marking.

In the case of an increasing (in plus) correcting invoice, there is no obligation to issue a correcting invoice. It is enough for the value of the correction to be stamped on the cash register.

2. Correction invoice to the invoice with the receipt with the impact on the declaration part.

Entrepreneurs can include in the JPK_V7 file the correcting invoice issued to the invoice for the receipt as a traditional VAT invoice without additional FP designation. Such an invoice is included in both the registration and declaration parts of the JPK_V7 file. Importantly, this method can only be used for a downward (in minus) correction. In such a situation, the transaction is not additionally shown in the register of returns at the cash register.

If the corrective invoice has an increasing character (in plus), the taxpayer is obliged to stamp its value at the cash register. By showing the correction as a regular invoice, the value of the sale would be doubled - once shown by the cash register report with the indication RO and the second time as a regular VAT invoice. Therefore, the sale resulting from the correction is shown on the basis of the cash register report, and the issued invoice has the designation FP and does not affect the amount of the tax liability.

Example 6.

Mr.Michał sold to a private person not conducting business, goods worth PLN 1,230 gross, punching the sale at the cash register and at the same time, at the customer's request, issuing an invoice for the receipt. The next day, the buyer asked Mr. Michał to issue a correcting invoice, because due to an obvious mistake, the value of the invoice was PLN 123. How should Mr. Michał correct the mistake?

Due to the fact that the correction is of an increasing nature, Mr. Michał is obliged to purchase sales at the cash register in the gross amount of PLN 1,107 (1,230 - 123). If the customer requests an invoice for the receipt, Mr. Michał is obliged to issue it. The cash register report containing the corrected sale should be included in the declaration part JPK_V7 and in the registration part with the indication RO, and the invoice issued for the receipt only in the registration part of the file with the designation FP.

Example 7.

Ms Halina issued an invoice for a receipt for a private person who does not conduct business. The customer returned the purchased goods and requested a correction to the invoice for the receipt. Ms Halina issued a simple corrective invoice and did not use the sign FP. Does he therefore have to correct the invoice issued?

No, due to the fact that the invoice is decreasing in nature, Ms Halina has the right to correct the sale by issuing a regular corrective invoice without the FP designation, despite the fact that the sale was originally documented with an invoice for the receipt. The correcting invoice will be shown in the declaration and registration part of the JPK_V7 file. On the other hand, Ms Halina does not enter entries into the register of returns and does not post its summary with the indication RO, because in such a case the sale would be doubled.

If the entrepreneur does not mark the invoice with the FP designation and detects an error after sending the JPK_V7 file, then in the JPK_V7 correction, the erroneous entry without the FP designation should be canceled, and then a new one with a correctly assigned designation should be added.

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Correction invoice and GTU marking

The corrective invoice does not have to cover all the items that were on the original invoice. It often happens that the buyer returns only part of the goods and only this value is included in the adjustment. GTU designations do not apply to all sales items. These codes apply only to a closed catalog of 13 groups of goods and services. Therefore, it may turn out that in the invoice, out of several sales items, only one is covered by the mandatory GTU marking. The individual sales items are not shown in the JPK_V7 file. The GTU code applies to the entire invoice.

Thus, when issuing a corrective invoice, the GTU sign is used only when the correction relates to the subject of sale covered by that sign.

Example 8.

Mr. Piotr issued a VAT invoice containing two items: advisory service and bicycle parts. In the JPK_V7 file, the invoice was marked GTU_12 in connection with the provision of an advisory service. The client returned the purchased bicycle parts, so Mr. Piotr issued a correcting invoice. Should he mark the entry in JPK_V7 with the GTU code, if the original invoice contained this mark?

No, Mr. Piotr does not apply GTU to the correcting invoice because the correction does not apply to the GTU marking.

If the correction does not concern the transaction, but the GTU code used, the entrepreneur has the option of correcting the entry in two ways:

1. Demonstration of a reversal entry with identical data (including incorrect GTU markings) and a reverse sign for the amount data, and another one that contains correct entries, including GTU markings. This method is used when the error was detected after sending the JPK_V7 file.

Example 9.

Ms Danuta issued a sales invoice FV 10/2020 to ABC with the designation GTU_01 for PLN 500. After sending the JPK_V7 file, it turned out that it used the wrong code - instead of GTU_01, it should use the GTU_12 code. How should Danuta correct the JPK_V7 file?

Due to the fact that the JPK_V7 file has been sent, Ms Danuta should apply a cancellation in order to correct the invoice entries:

• FV 10/2020 with incorrect designation GTU_01 for PLN 500 - entry, which is already in the sent JPK_V7 file;

• FV 10/2020 with incorrect designation GTU_01 for the amount of PLN (-500) - new canceling entry;

• FV 10/2020 with the correct marking GTU_12 for the amount of PLN 500 - new correct entry.

The canceling entry and the new correct entry should be included in the record part.

2. Showing only the entry containing the correct GTU - this method is used when the JPK_V7 file has not been sent yet.

Example 10.

Ms Wanda issued a sales invoice for FV 1/12/2020 with the designation GTU_03. On the same day, it discovered an error involving the use of the wrong GTU code. How should Mrs. Wanda correct the GTU code used?

Due to the fact that the JPK_V7 file has not been generated, there is no need to correct the entries. Mrs. Wanda may show the sales invoice with the correct G code in the JPK_V7 fileHERE.

The use of an incorrect GTU code does not result in the obligation to issue a correcting invoice. In this case, only the JPK_V7 file in the registration part should be corrected using the correct GTU code.

Correction invoice and SPM (split payment mechanism)

As in the case of GTU codes, the entrepreneur has two ways to correct the MPP marking in JPK_V7. The method depends on whether the error was detected before or after sending the JPK_V7 file.

1. If an error in the application of the MPP marking was detected after sending the JPK_V7 file, the entry reversal should be applied.

Example 11.

Mrs. Natalia issued a sales invoice for FV 10/12/2020 to ABC with the designation MPP for the amount of PLN 10,000. After sending the JPK_V7 file, it realized that the transaction did not exceed PLN 15,000 and used the MPP code incorrectly. How should Danuta correct the JPK_V7 file?

Due to the fact that the JPK_V7 file has been sent, Ms Danuta should apply a cancellation in order to correct the invoice entries:

• FV 10/12/2020 with incorrect MPP designation for the amount of PLN 10,000 - entry, which is already in the sent JPK_V7 file;

• FV 10/12/2020 with incorrect SPM for the amount of PLN (-10,000) - new canceling entry;

• FV 10/12/2020 without the SPM for PLN 10,000 - new correct entry.

The canceling entry and the new correct entry should be included in the record part of the JPK_V7 file.

2. If an error in the application of the MPP marking was detected before sending the JPK_V7 file, it is enough that only the correct entry is included in the file.

Example 12.

Ms Patrycja issued a sales invoice for FV 11/2020 without the MPP marking. On the same day, she detected a mistake before sending the JPK_V7 file. How should Ms Patrycja correct the entry concerning this sale in JPK_V7?

Due to the fact that the JPK_V7 file has not been sent, there is no need to correct the entries. Ms Patrycja shows in the file an invoice with the assigned MPP code.

Marking the MPP is connected with the obligation to use the annotation "split payment mechanism" on the invoice printout. This annotation is a mandatory part of the invoice if three cumulative conditions are met:

• the sale is made to the company;

• the value of the invoice exceeds PLN 15,000 gross;

• at least one item of the invoice is listed in Annex 15 to the VAT Act.

Issuing a sales invoice without this annotation should be corrected with a correcting invoice of formal data, which is handed over to the buyer.

Correction of markings related to purchase invoices

In the case of cost invoices, additional markings should also be used in the record part of the JPK_V7 file. Pursuant to § 11 sec. 2 and 8 of the Regulation of the Minister of Finance, Investment and Development on the detailed scope of data contained in tax declarations and records in the field of tax on goods and services, taxpayers are required to use markings such as:

• IMP - in the case of import of goods;

• SPM - if the conditions for the obligatory application of the split payment mechanism have been met;

• VAT_RR - for VAT_RR invoices documenting the purchase from a flat-rate farmer;

• WEW - for internal documents;

• MK - in the case of an invoice from a small taxpayer who settles VAT using the cash method.

If the entrepreneur did not use the required marking of the purchase document in the sent JPK_V7 file, it is enough to correct the registration part of the JPK_V7 file. In this case, no cancellation entries are made. It is sufficient to assign the appropriate codes by modifying the entries.

Example 13.

Ms Michalina runs a stationery shop and has purchased commercial goods. She received a VAT invoice with the annotation "cash method". When booking the invoices, it showed VAT in accordance with the right to deduct, i.e. on the day of payment, but did not use the designation MK for the purposes of the JPK_V7 file. It only realized after sending the file to the office. How should it correct the entry in such a situation?

Due to the fact that the JPK_V7 file has been sent, it is necessary to resend the corrected file in the registration part with the designation MK for this invoice. When preparing a correction of the JPK_V7 file, it is enough for Ms Michalina to add the MK line in the record part of JPK_V7.

To sum up, an entrepreneur who made a mistake in the transaction markings or types of documents used for the purposes of the JPK_V7 file, has the possibility to correct the entries. The method of correcting the entries depends on whether the JPK_V7 file has been sent or not. Showing the correction in JPK_V7 additionally depends on the subject of the correction. If the correction does not affect the tax base, it should be shown only in the record part of the JPK_V7 file.