VAT (part 12) - registration and registration obligations, part III

Correcting invoices, correction notes, duplicate invoices

Correction invoice

Correcting invoices are issued by the seller in strictly defined situations. The Act provides for the issue of such a document in the event that:

• after issuing the invoice, the taxpayer grants discounts (rebates, discounts, accepted complaints and discounts),
• the tax base is reduced by the value of the returned goods,
• the taxpayer reimburses the buyer of all or part of the receivables

there is an obligation to issue an appropriate corrective invoice.

In a situation where, after issuing the invoice, the taxpayer grants a discount on one or more supplies of goods or services, the corrective invoice should contain at least:

• sequential number and date of issue,
• the data contained in the invoice to which the correcting invoice relates, as specified in par. 5 sec. 1 points 1-6 and the name (type) of goods or services covered by the discount,
• amount and type of discount granted,
• amount of tax reduction.

However, when the taxpayer, after issuing the invoice, grants a discount on all supplies of goods or services made to one recipient in a given period, the correcting invoice should contain at least:

• sequential number and date of issue,
• data specified in par. 5 sec. 1 points 3 and 4,
• the period to which the discount is granted,
• the amount of the discount granted and the amount of the reduction of output tax.

A correction invoice is also issued when, after issuing the invoice, the price has been increased or a mistake in the price, rate or tax amount or in any other item of the invoice has been found. The price increase adjustment should include at least:

• sequential number and date of issue,
• the data contained in the invoice to which the correcting invoice relates, as specified in par. 5 sec. 1 points 1-6 and the name (type) of goods or services covered by the price increase,
• the amount of the increase in output tax.

On the other hand, a corrective invoice issued in the event of a mistake in the price, rate or tax amount or in any other item of the invoice should contain:

• sequential number and date of issue,
• data specified in par. 5 sec. 1 points 1-6 included in the invoice to which the corrective invoice relates,
• the correct content of the corrected items, including the correct amount, or the difference between the corresponding amounts originally indicated in the error amount and in the correct amount.

Correction note

Correction note, as results from par. 15 of the invoice regulation is a document issued by a buyer of a good or service who received an invoice containing errors in any information relating in particular to the seller or buyer or the designation of the goods / service.

It should contain the following data:

• the term "CORRECTION NOTE",
• sequence number and date of issue,
• the first and last names or names of the taxpayer and the buyer of the goods or services and their addresses and the number by which the taxpayer is identified for the tax, as well as the number by which the buyer of the goods or services is identified for the tax or value added tax under which it received he goods or services,
• the data contained in the invoice to which the correcting note relates, specified in par. 5 sec. 1 points 1 and 6,
• indication of the content of the corrected information and the correct content.

It is not issued when the error concerns:

• measures and quantity (number) of delivered goods or scope of services rendered,
• unit price of a good or service without the tax amount (net unit price),
• the amounts of any discounts, including for early receipt of receivables, unless they are included in the net unit price,
• value of the goods delivered or services performed, covered by the transaction, without the tax amount (net sales value),
• tax rates,
• the sum of the net sales value with the division into sales subject to individual tax rates and sales exempt from tax,
• tax amounts on the sum of the net sales value, broken down into amounts related to individual tax rates,
• total amounts due.

In such situations, it is necessary for the seller to issue a corrective invoice. It is also worth mentioning that the corrective note requires the invoice issuer's approval.

Invoice duplicate

A duplicate invoice is issued if the invoice is damaged or lost, the seller re-issues it:

• at the request of the buyer with the data contained in the invoice held by the taxpayer,
• in accordance with the data contained in the invoice held by the buyer.

The reissue invoice must additionally contain the word "DUPLICATE" and the date of issue. It should be drawn up in two copies, one for the buyer and the other for the seller.

In the case of invoices sent in electronic form, the seller sends a duplicate of the invoice to the buyer, while keeping it in his documentation.

Internal invoices

From January 2013, internal invoices may (but do not have to) be issued by taxpayers in the case of activities listed in art. 7 sec. 2 and Article 8 sec. 2 of the VAT Act, as well as for:

• intra-Community acquisition of goods,
• delivery of goods for which the buyer is the taxpayer,
• provision of services for which the recipient is the taxpayer,
• documenting the amounts of subsidies, subsidies and other payments of a similar nature returned.

Due to changes in VAT, internal invoices are to disappear in 2014, due to the fact that the relevant EU regulations do not provide for the possibility of issuing such documents.

Blank invoices and invoice cancellation

If taxpayers document with a VAT invoice an activity that in fact did not take place, then such documents are called "empty" invoices. These invoices do not give the buyer the right to deduct input tax.

It is different when it is necessary to cancel an issued invoice. VAT regulations do not regulate this issue. However, the tax authorities take the position that it is possible to cancel an invoice as long as it has not been placed on the market.

If the issued invoice does not document the performance of the sale, has not been sent to the customer, and the seller has both copies of this document, the invoice can be canceled by making appropriate annotations, eg "canceled on ...", with the signature of the person authorized to issue invoices. The canceled invoice should not be entered into the VAT register and shown in the VAT declaration, but only stored in the seller's documents.

Cash registers

Obligation and exemptions from the use of cash registers

Taxpayers selling goods or services to natural persons who do not conduct business activity or to flat-rate farmers must keep records of such sales using cash registers. However, the Minister of Finance provided for tax exemptions in this respect and exemptions due to the amount of turnover.

Objective exemptions release only strictly defined types of activities from the records. They are listed in the annex to the Regulation of the Minister of Finance of November 29, 2012 on exemptions from the obligation to keep records with the use of cash registers. If the taxpayer obtains revenues from the sale to natural persons who do not conduct business activity and flat-rate farmers only of such activities that are exempt from registration, then there is no obligation to install a cash register. However, if there are both exempt activities and activities that are not subject to the exemption, it should be remembered that the exemption from the need to record sales using a cash register is granted provided that the share of turnover obtained from exempt sales in total turnover is higher than 80% (paragraph 3 (1) (4) of the above-mentioned regulation). This exemption expires after two months from the first day of the month following the month in which the turnover from the sale exempted in total turnover was lower than or equal to 80%.

The objective exemption, on the other hand, releases the taxpayer from the obligation to record all his activities. Some professional groups are exempt from the obligation to record sales with the use of cash registers, however, each year the Minister of Finance reduces the number of professional groups entitled to use this privilege.

The regulation also provides for an exemption on account of the amount of turnover. If in a given tax year the turnover from sales to natural persons who do not conduct business activity does not exceed PLN 20,000, then there is no obligation to install a cash register. Such an obligation arises after two months from the first day of the month, which follows the month in which the taxpayer exceeded the limit of PLN 20,000. It should be remembered that when determining the turnover, the activity that is exempt from the obligation to record under the regulation on cash registers and the entire sales value, and not only a commission or margin, are also taken into account.

Taxpayers who benefit from VAT exemption because they are small entrepreneurs referred to in art. 113 of the VAT Act, they must remember that the VAT exemption does not mean that they are also exempt from recording sales using cash registers! It may happen that they exceed the allowable turnover limit and will be required to use cash registers.

Taxpayers must also remember that the exemption from the exemption applies without any transitional period, which means that if the taxpayer plans to start selling the products listed in par. 4 of the Regulation on cash registers must obtain a cash register in good time.

Deduction of the amount spent on the purchase of a cash register

Taxpayers have the right to include as tax deductible costs the amount spent on the purchase of a cash register. They do this by entering it into the fixed assets register and depreciation. Additionally, active VAT taxpayers may exercise the right to deduct the tax on goods and services charged when purchasing tax.

In addition, it is possible to take advantage of the discount for the purchase of cash registers. Pursuant to Art. 111 sec. 4 of the VAT Act, taxpayers who start recording turnover and amounts of tax due on their applicable dates may deduct an amount corresponding to 90% from the tax. value of the cash register (without tax), but not more than PLN 700.