Cost invoice found - can it be posted?
The problem of finding a cost invoice after some time, most often one that already relates to the period for which the advance tax and VAT was paid, is a situation that often occurs in practice. It also happens that our invoices are delivered late. Can the found cost invoice be posted? What to do with a forgotten or late invoice? Nothing is lost, but such situations are considered separately on the basis of VAT and separately on the basis of PIT.
Cost invoice and VAT found
As a rule, active VAT taxpayers may deduct VAT in the period in which the tax obligation arose on the seller's side or from 2021 in one of the next three settlement periods (monthly settlement) or two consecutive settlement periods (quarterly settlement). However, it should be emphasized that VAT cannot be deducted before the actual receipt of the invoice or customs document. In 2020, however, VAT could be deducted on the date of receipt of the invoice or in two subsequent settlement periods (months or quarter, depending on the declared form of VAT settlement).
Mr. Piotr settles VAT on a monthly basis. In February 2021, he received a cost invoice, but due to the multitude of duties, he forgot to post it. He didn't find it until April - can he book it?
If the taxpayer received the invoice in February, then the VAT may be entered in the register of purchases VAT on the date of receipt of the invoice or in the next three months. The VAT from the found cost invoice can therefore be included in February or, exceptionally, in March or April or May.
Mr. Daniel settles VAT on a quarterly basis. In January 2021, he received a cost invoice, but he did not enter it for various reasons. He didn't find the invoice until April. Can he book it?
If Mr. Daniel received an invoice in January (Q1), then VAT may be entered in the VAT purchase register on the date of receipt of the invoice or in two subsequent quarters. The VAT from the found cost invoice can therefore be included in the 1st, 2nd or 3rd quarter.
Due to the entry of SLIM VAT 2, it was possible to deduct VAT after the deadline, "on a regular basis". This is related to the introduction of an extension of the number of tax periods in which the taxpayer will be able to make a deduction by correcting the tax return.
Cost invoice and income tax found
What to pay attention to when posting invoices on the basis of income tax? For the method of accounting for costs in the KPiR (such method is not reported anywhere, but only used for accounting purposes consistently throughout the tax year). Taxpayers can choose between two methods of cost settlement: simplified (cash) or accrual.
In the case of the simplified method, the costs should be recognized when they are incurred, i.e. on the date of issuing the invoice or other accounting document (policy, contract, etc.) - without division into costs directly or indirectly related to the income.
However, in the case of the accrual method, the cost should be booked in the year it actually relates to. This method assumes the division of costs due to their relation to the obtained income, where:
direct costs (e.g. purchase of goods) should, as a rule, be included in the tax year in which the corresponding revenues were achieved,
indirect costs should be included in the book on the date they are incurred. The date of incurring the cost is the date of issuing the invoice (bill) or other evidence constituting the basis for the booking (recognition) of the cost. Importantly, if indirect costs relate to a period exceeding the tax year, and at the same time it is not possible to determine what part of them relates to a given tax year, it is necessary to divide the costs proportionally to the length of the periods they relate to.
Therefore, it is possible to post an invoice on the basis of PIT, in principle, on the date of issuing the invoice or later, limited to the end of the tax year. This means that the cost (net value for the active VAT payer or gross value for the exempt taxpayer) should simply be booked in the year to which it relates.
Mr.Michał received an invoice for the purchase of office supplies in October 2020, but forgot to enter it. He found the invoice after 2 months - in December. Can he book it?
Yes, as long as the expenditure meets the definition of tax deductible cost, and therefore is related to the activity, then on the basis of PIT, if October has already been closed, Mr. Michał can post the invoice in the current period. It is possible to post such costs until the end of the tax year, i.e. the end of December.
How to book a forgotten invoice in the wfirma.pl system?
If the invoice has been found before the period is settled, it should be entered in the books according to the date of its issue.
However, if the invoice was found after the end of the period, the taxpayer should determine whether it is still within the deadlines specified by the regulations (on the basis of PIT and VAT). If so, for cleaning purposes it is worth booking such forgotten invoices on the first day of the month in which they were found. It is worth emphasizing that such posting should result from exceptional circumstances and usually applies to a situation where a given period has already been closed by calculating the advance tax and sending the VAT declaration. Thanks to this, entrepreneurs do not have to correct taxes. Posting shift should not be a habitual practice. It should also be noted that active VAT payers must submit the JPK_V7 file every month. The structure of the JPK_V7 file has been specified in detail by the Ministry of Finance and one of the elements of the file is the date of the invoice, so active VAT payers are required to show the actual date on the purchase invoice in the JPK_V7 file.
It is important from the taxpayer's point of view that due to the entry into force of the new JPK_V7 structure from October 1, 2020, the current legal regulations are applied to invoices recognized after this period, even when they relate to earlier periods. The above means the necessity to mark the types of transactions and documents for the purposes of the new JPK_V7. Detailed information on document markings is described in the article: Markings of purchase and sale documents in JPK V7M and JPK V7K
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Posting of expense drafts
The user of the wFirma.pl system has the option of including the found invoice as a draft of expenses, thanks to which the expense can be recognized on the appropriate dates in the records kept.
In order to enable the function of draft versions of expenses, go to the tab: SETTINGS »TAXES» ACCOUNTING FUNCTIONS, where you should select the option WORKING VERSIONS OF EXPENSES.
To book the found invoice in the wFirma.pl system, go to the EXPENSES »ACCOUNTING» DRAFT VERSIONS »ADD» WORK VERSION VAT INVOICE. In the field ISSUE DATE, enter the actual date of issuing the invoice (even if it was issued in the period for which the advance tax has already been calculated) and the DATE OF ACCOUNTING TO KPIR, enter the first day of the current month, and as the DATE OF ACCOUNTING FOR VAT, enter the actual date of receipt of the invoice or the first day of one of the three / two consecutive billing periods.
After saving, the entered draft of the expenditure must be posted so that the expenditure is correctly included in the KPiR and in the Purchase VAT Register. To do this, go to the EXPENDITURE »ACCOUNTING» WORKING VERSIONS tab, where you should select the entered expense on the list and select the option ACCOUNT WORKING VERSIONS from the top menu.
The cost invoice found in this way will be included in the KPiR in accordance with the entered date of posting to the KPiR and in the VAT purchase register on the entered date of receipt. Additionally, the invoice will be entered correctly in the JPK_V7 file for the period in which the entrepreneur deducts VAT with the actual date of issuing the invoice.
Posting expenses directly in the records
To post the found invoice directly in the records (i.e. omitting the addition of draft expense versions), go to the EXPENDITURE »ACCOUNTING» ADD »VAT INVOICE / INVOICE (WITHOUT VAT) tab, select the correct type of expenditure and complete the fields:
- Invoice issue date - in accordance with the invoice issue date appearing on the invoice (due to the correctness of JPK_V7),
- Date of posting to KPiR - the date on which the cost will be included in the KPiR (in the case of forgotten cost invoices, it is most often the first day of the current month),
- Date of posting to VAT - the date on which the document was received or the date of one of two / three consecutive settlement periods.
The invoice posted in this way will be sent to KPiR in accordance with the ACCOUNTING DATE TO KPiR. On the other hand, on the basis of VAT, it will go to the VAT register of purchase on the date indicated in the VAT ACCOUNTING DATE item. Therefore, there is no obligation to correct tax settlements, because the PIT basis will reduce the tax base, so in this case there is no need to convert the advance into income tax - the excess costs will be settled in the advance payment for the current period. On the other hand, on the basis of VAT, it will be recognized in the not yet settled period, in accordance with the right to deduct VAT.