Forecast invoice for energy - VAT settlement


Energy suppliers often issue forecasted sales invoices to their service users. These assumptions result from agreements concluded between the parties. The question often arises among taxpayers - does the forecast energy invoice give the right to deduct VAT? The answer is presented in the guide below.

The right to deduct VAT - utilities

Currently, in the field of utilities, for which the supply of electricity undoubtedly qualifies, the deduction of VAT takes place under the general principles set out in Art. 86 sec. 10 of the VAT Act. According to its wording, the right to reduce the amount of tax due by the amount of input tax arises in the settlement for the period in which the tax obligation arose in relation to the goods and services purchased or imported by the taxpayer. However, not earlier than in the settlement for the period in which the taxpayer received the invoice.

Until the end of 2013, in the case of utilities, the right to deduct VAT was valid in the period in which the payment was due - or in one of the two following. Since 2014, this rule has ceased to apply!

Right to deduct VAT - forecast energy invoice

Taxpayers often have doubts as to whether they are entitled to a deduction of VAT on projected energy invoices. And it is clear from the interpretations issued by the tax authorities that there are no contraindications to do so.

An example of confirmation of the possibility of deducting VAT from forecast invoices is the interpretation of the Director of the Tax Chamber in Bydgoszcz, ref. No. ITPP2 / 443-154 / 14 / EK of 28 April 2014. In its interpretation, the Authority refers to Art. 86 sec. 1 of the Act, which determines when the taxpayer has the right to deduct VAT.

Art. 86 sec. 1
To the extent that the goods and services are used to perform taxable activities, the taxpayer referred to in article 2. 15, has the right to reduce the amount of tax due by the amount of input tax.

Additionally, it refers to the content of Art. 86 sec. 10 indicating the period during which the taxpayer can make a deduction. He also cites Art. 86 sec. 10b point 1 and article. 86 sec. 10c of the act. According to them, i.a. in the case of utilities, the right to deduct VAT arises in the period in which the taxpayer received the invoice. The authority emphasizes that forecast invoices have not been indicated in the catalog of situations in which the taxpayer is not entitled to deduct VAT, as specified in Art. 88 sec. 3a.

Art. 88 sec. 3a
Invoices and customs documents do not constitute grounds for reducing the output tax and refunding the tax difference or returning input tax, if:
  1. the sale has been documented with invoices or corrective invoices:
    1. issued by a non-existent entity,
    2. (repealed)
  2. the transaction documented with an invoice is not taxable or exempt from tax;
  3. (deleted)
  4. issued invoices, corrective invoices or customs documents:
    1. state activities that have not been performed - in the part concerning these activities,
    2. provide amounts that are not in accordance with reality - in the part concerning those items for which amounts are not consistent with reality,
    3. confirm the activities to which the provisions of art. 58 and 83 of the Civil Code - in the part concerning these activities;
  5. invoices, corrective invoices issued by the buyer in accordance with separate regulations have not been accepted by the seller;
  6. (deleted)
  7. invoices were issued in which the amount of tax was shown in relation to taxable activities, for which the amount of tax is not shown on the invoice - in the part relating to these activities.

In the interpretation, the Director of the Tax Chamber in Bydgoszcz also refers to Art. 19a paragraph. 1, which defines the general principle of the emergence of a tax obligation on the basis of VAT. According to its content, the tax obligation arises when the goods are delivered or the service is performed. Wherein paragraph 5 point 4 lit. and the Act indicates that the tax obligation in the case of electricity supply arises at the time of issuing the invoice. However, if the energy supplier did not issue the invoice or issued it late, the tax obligation arises upon the expiry of the invoice issuance deadlines specified in Art. 106i paragraph. 3 and 4, and where no such time limit has been specified - upon the expiry of the payment deadline.

The invoice for the supply of energy is issued no later than the payment deadline.

On the basis of the above-mentioned legal regulations, the authority states that the taxpayer is entitled to deduct VAT from the forecasted electricity invoice, because it serves a taxable activity, and its issuance proves that the seller has a tax obligation on the sale, which is one of the the conditions necessary for the deduction of VAT.

Forecast Energy Invoice - Posting to Company

The invoice for electricity in the system is posted using a specially created expenditure category "Costs of utilities and telecommunications services".

The invoice is entered into the system according to the EXPENDITURE »ADD EXPENSE» VAT INVOICE »COSTS OF MEDIA AND TELECOMMUNICATION SERVICES. The invoice posted in this way in the net amount will go to column 13 of KPIR and to the VAT register of purchases.