Internal invoice liquidation 2014


Until the end of 2012, taxpayers were obliged to issue internal invoices in order to correctly settle selected - specified in the VAT Act - economic events. Starting from 2013, the legislator allowed taxpayers some freedom in their preparation. On the other hand, from the next year, the concept of an internal invoice will completely disappear from the provisions of the VAT Act.

Freedom to issue internal invoices until the end of 2013

The issue of issuing internal invoices has been regulated in Art. 106 sec. 7 of the VAT Act. According to its content, this type of document can be issued in the case of:

  • activities listed in art. 7 sec. 2 and art. 8 sec. 2 of the Act (including free delivery of goods, free provision of services),

  • intra-Community acquisition of goods,

  • a supply of goods for which the purchaser is the taxable person, and

  • provision of services for which the recipient is the taxpayer.

Importantly, for a given accounting period, the taxpayer may issue one invoice documenting collectively the activities performed in the indicated period. Internal invoices can also be issued to document the returned amounts of grants, subsidies and other payments of a similar nature.

No internal invoices in 2014

In connection with the amendment to the VAT Act, Art. 106, which will result in the introduction of new regulations in this respect (Art. 106a-106q), which will not deal with the issue of internal invoices.

This type of solution is aimed at adapting Polish regulations to EU directives, as well as at eliminating certain obligations for taxpayers, and thus - eliminating unnecessary bureaucracy.

The nature of some transactions is still expected to oblige the taxpayer to account for VAT, which means that it will still have to be calculated. However, the taxpayer will be able to make any calculations necessary to determine the tax liability directly on the original invoice received from the contractor, e.g. when importing services or intra-Community acquisition of goods.

Due to the fact that internal invoices were used in the event of free delivery of goods or free provision of services, the taxpayer does not have any document that would be the basis for accounting entries. Therefore, in order to calculate the tax, it would be necessary to prepare an internal document that would enable appropriate calculations and at the same time would constitute an accounting document, allowing for the inclusion of entries in the kept records.