Deduction of VAT from a duplicate credit note for utilities

Deducting VAT from utility invoices and correction invoices does not have to be problematic. Here are some tips to make this task easier.

Deduction of VAT from the invoice for utilities

In the case of invoices for utilities, it should be taken into account that the tax obligation on the part of the seller arises on the date of their issue, not later than the payment deadline. If the invoice for utilities is issued after the due date, the moment when the tax obligation arises is determined by the due date for payment. However, the buyer may deduct VAT not earlier than upon receipt of the invoice or in one of the two following accounting periods.

VAT deduction from a credit note

Pursuant to Art. 86 (19a) of the VAT Act in the event that the buyer of goods or services has received a correcting invoice referred to in Art. 29a paragraph. 13 and 14, he is obliged to reduce the amount of input tax in the settlement for the period in which the correcting invoice was received.

Example 1.

The corrective invoice issued in May 2014 was received by the company in June 2014. In this case, it can only be included in the VAT declaration for June 2014.

Therefore, the date on which the corrective invoice is received by the company is important. Such an invoice should most often be included in the billing period, according to the date of receipt.

However, if the taxpayer has not deducted the amount of input tax specified in the invoice to which the correction applies, and the right to such reduction is entitled to him, the reduction of the input tax amount from the correction is included in the settlement for the period in which the VAT is deducted from the original invoice.

Example 2.

The source invoice issued in May 2014 to the company was received in July 2014 and was included in the VAT declaration for July 2014. The corrective invoice was issued in June 2014 and it was received by the company in the same month. VAT on the correcting invoice will also be settled in July 2014, i.e. in the month in which the right to deduct VAT from the source invoice was available.

Deduction of VAT from a duplicate correcting invoice

It will be similar when deducting VAT from the duplicate of the correcting invoice - the moment of receipt of the duplicate itself is also important here.

If the correction invoice:

• it has not been received earlier, then the date of receipt of the duplicate is valid and the document is booked in the given period and the input VAT is reduced by the amount indicated in the correction;

• received earlier, then the issued duplicate does not cause any tax obligations in the current period. Thus, the reduction of the input tax should take place on the date of receipt of the original correcting invoice.

Example 3.

In June 2014, the company received a duplicate correction invoice for utilities. This document was originally issued in April 2014 and was received by the company in the same month. The original, however, was lost. In the declaration, for which month should the VAT be deducted?

Due to the fact that the document was previously received, but was lost, the obligation to settle VAT arose on the date of receipt of the original correcting invoice, i.e. in April 2014. In this case, the receipt of a duplicate invoice does not give rise to the right to reduce the input tax later than the original one. It only confirms the event that arose earlier.

Example 4.

In July 2014, the company received a duplicate correction invoice for utilities. Originally the document was issued in January 2014. In the declaration, for which month should VAT be deducted?

If the invoice has not been received by the company earlier, the VAT tax is settled in the declaration for July 2014.

Example 5.

In July 2014 I received a duplicate of the gas correction invoice originally issued in May 2014 and the corrective invoice for telephone services for January, March and May 2014. How to correctly settle VAT on invoices received?

If the invoice has not been received by the company earlier, the VAT tax is settled in the declaration for July 2014.