VAT tax obligation on the delivery of the press - when does it arise?

Entrepreneurs engaged in printing or delivering books, newspapers, magazines and magazines, in order to correctly settle the transaction, should read the method of determining the moment of VAT tax liability in this type of transaction.The VAT Act provides for a number of exceptions to the general principle of determining the tax obligation, this applies in particular to the printing and delivery of printed books, newspapers, magazines and periodicals. Companies operating in these industries are somewhat privileged on the basis of VAT, as they usually have a longer time to issue an invoice compared to other taxpayers. This is because payments for books, newspapers, magazines and periodicals delivered are often made much later than their delivery, which in turn is a consequence of the need to finance their purchase from the supplier through sales revenues for final recipients. VAT tax obligation when delivering the press - how to determine the moment of its creation?

Tax obligation in VAT on delivery of the press - how to determine the moment of creation?

The delivery of printed books, newspapers, magazines and periodicals is settled on special terms. We determine the moment when the tax obligation arises on the basis of the invoice issuance date. The invoice date for the delivery of printed books, newspapers, magazines and periodicals is the 60th day from the date of issue of the goods. If the contract on the basis of which these deliveries are made provides for the settlement of returns for publications, the binding invoice issue date is the 120th day from the first day of goods delivery. Of course, the invoice can be issued in advance, the given respectively 60 and 120 days are the deadlines by which the entrepreneur delivering printed books, newspapers, magazines and magazines is required to issue an invoice confirming the transaction.

However, it may happen that the invoice has not been issued on time or has not been issued at all. In such a situation, the tax obligation arises, respectively, on the 60th or 120th day from the date of publication of books, newspapers, magazines and magazines, i.e. on the last day on which the invoice documenting the transaction should be issued by the taxpayer.

Example 1.

As part of his sole proprietorship, Mr. Marek deals with printing and delivering fishing magazines. He is an active VAT taxpayer applying a monthly settlement of this tax. On October 3, 2020, he delivered the magazines (goods were released from the warehouse and accepted in the contractor's warehouse), and the invoice for the order was issued on the 60th day after the delivery. The counterparty paid for the goods the day after receiving the invoice. When will the tax obligation arise on the delivery?

In this case, the tax obligation will arise on the 60th day from the date of publication of the books, which is also the final date for issuing the invoice, which Mr. Marek did.

When determining the VAT liability for the delivery of printed books, newspapers, magazines and magazines, you also need to take into account the moment of receipt of any payment or part of the payment. If the taxpayer has received all or part of the amount due, the tax obligation arises on the date of receipt of the payment or its part.

Example 2.

Mr. Artur, who runs a publishing house in the form of a sole proprietorship and is an active VAT payer, received an order from his contractor on October 30, 2020 for the delivery of 100 books worth PLN 6,000. The condition for the performance of the contract is the payment of half the value of the contract. Mr. Artur's contractor made the payment (PLN 3,000) on the same day, i.e. on October 30, 2020. An advance invoice has been issued for this amount. The books were shipped on November 2, 2020, and an invoice was issued on the same day. The remaining amount due (PLN 3,000) was received by Artur on December 7, 2020. When will the VAT obligation arise with Mr. Artur who is the supplier?

Due to the fact that Mr. Artur received part of the payment before the delivery date, the tax obligation with respect to the part of the payment received must be shown on the day of receipt of the payment, i.e. on October 30 (PLN 3,000). For the remaining value of the order (PLN 3,000), the tax obligation arises on the day of issuing the invoice, i.e. on November 2.

The above rules for determining the tax obligation under VAT apply to transactions concluded with taxpayers or non-taxable legal persons. If the entrepreneur provides books, newspapers, magazines or magazines to natural persons, the tax obligation arises on general principles, i.e. at the moment of the delivery, and if the taxpayer has previously received the payment (in whole or in part) - upon its receipt (in this part).

Example 3.

Mr. Piotr, who deals with the delivery of legal magazines, delivered goods to a natural person on October 18, 2020. On the same day, the sale was checked in the cash register, the books were sent to the buyer who had not yet paid. When will the tax obligation arise? Is Mr. Piotr obliged to issue an invoice if the sale has been recorded at the cash register?

The tax obligation will arise on the date of delivery, i.e. October 18. Mr. Piotr rightly purchased the transaction for the cash register and unless the buyer wishes to issue an invoice for the receipt, he does not have to issue it.

VAT tax obligation on the delivery of the press - when does it arise?

Entrepreneurs engaged in the printing of books, newspapers, magazines or magazines as part of their business are obliged to issue an invoice no later than on the 90th day from the date of performance of the activity. The VAT obligation on the delivery of the press arises upon issue of this invoice. If the invoice is not issued within the statutory deadline or not at all, the tax obligation arises on the final date for its issuance, i.e. on the 90th day from the performance of the activity.

Example 4.

Mr. Sebastian is an active VAT taxpayer and deals with printing books to order. The service was performed on October 15, 2020 and the invoice was issued on November 15, 2020. By November 30, 2020, the contractor has not yet paid for the service provided by Mr. Sebastian. When did the VAT obligation arise?

In this case, the tax obligation arises when the invoice is issued, i.e. on November 15. Mr. Sebastian issued an invoice on time.

Similarly to the delivery of books, newspapers, magazines and magazines, also with regard to their printing, receipt of all or part of the payment before the service is performed gives rise to a tax liability. Start a free 30-day trial period with no strings attached!

Example 5.

Mr. Sebastian from the previous example performs another service for the same contractor who has delayed the payment for the previous service for a long time. The second one was made on December 1, 2020, while Mr. Sebastian is refraining from issuing an invoice to the contractor, because he is afraid that, as before, he will have to pay a significant amount of VAT to the tax office, despite the lack of payment for the service provided. When can he / she issue an invoice at the latest, assuming the counterparty fails to make the payment early? When will the tax obligation arise?

According to the regulations, Mr. Sebastian has 90 days to issue an invoice, counting from the date of performance, i.e. December 1. 90 days expires on February 28, 2021 and then Mr. Sebastian must issue an invoice, and thus demonstrate the tax obligation in VAT, even if he has not yet received payment from the contractor for the service provided. If the contractor makes the payment earlier, the tax obligation will arise on the date of receipt of the funds.

Printing books, newspapers, magazines and magazines for the benefit of natural persons, similarly as in the case of their delivery, results in the emergence of a tax obligation upon the performance of the service, and in a situation where the taxpayer has previously received all or part of the receivable, upon its receipt in full or in the appropriate part.

Tax obligation in VAT on delivery of the press - summary

Summing up, we can say that entrepreneurs dealing with the delivery and printing of books, newspapers, magazines and periodicals as part of their business activities are to some extent privileged under VAT, because the tax obligation in transactions between taxpayers does not arise at the time of delivery of goods or services, and only on the invoice issue date, for which they have a relatively long time (from 60 to 120 days depending on the type of activity performed). However, it should be borne in mind that in the event of early receipt of payment (in whole or in part), the tax obligation arises upon receipt of funds (in relation to all or part of the receivable). The tax obligation for sales to natural persons who do not conduct business activity arises upon the delivery (performance of the service), and if the payment has been previously received (in whole or in part), the tax obligation arises upon its receipt (in a specific part).