Types of invoices in economic turnover
Invoices are the most popular commercial documents in business relations. On their basis, the sale of goods and the performance of services both in the country and in the case of foreign transactions are documented. Invoices can be issued in paper or electronic form. Pursuant to the VAT Act, the type of invoice, as a rule, is not determined by its name, but the data on it. If the document does not contain the elements required by the law, it cannot be considered an invoice. At the same time, it should be noted that the invoice in most cases affects the emergence of a tax obligation. That is why it is worth getting to know the most popular types of invoices used in business transactions.
Types of invoices - regular invoice
The taxpayer is obliged to issue an invoice in the event of:
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sale, supply of goods, provision of services to another VAT payer (or a tax of a similar nature) or to a non-taxable legal person,
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mail order sales from the territory of the country (also to entities other than those mentioned in the previous point),
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intra-Community supply of goods (also to entities other than those mentioned in the first point),
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receipt of all or part of the payment before performing the activities referred to in the above two points (except for certain situations specified in the Act).
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Important! At the request of the buyer of goods or services, the taxpayer is required to issue an invoice, even in the case of activities exempt from VAT. The condition for issuing such an invoice is to submit the request within 3 months from the end of the month, from the date on which the goods were delivered or the invoice was issued, or the whole or part of the payment was received. |
A correctly issued invoice should contain:
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date of issue,
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a sequential number that uniquely identifies the invoice,
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first and last names or names of the taxpayer and buyer and their addresses,
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the number by which the taxpayer is identified for tax purposes,
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the number by which the buyer is identified for tax purposes,
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the date of making or completing the delivery and the date of receipt of payment,
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name (type) of goods or services,
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measure and quantity (number) of delivered goods, scope of the service performed,
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unit price of a good or service (net),
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amounts of discounts or price reductions, rebates for early payment,
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value of the goods delivered, the service performed without the tax amount (net),
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tax rate,
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the sum of the net sales value, with a breakdown into sales subject to individual tax rates and sales exempt from tax,
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the amount of tax on the sum of the net sales value, broken down into amounts related to individual tax rates,
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the total amount due.
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Important! The invoice must be issued no later than the 15th day of the month following the performance of the service or delivery of the goods and no later than 30 days before the delivery of the goods or the performance of the service after receiving the payment in whole or in part. |
Types of invoices - invoice of the taxpayer exempt from VAT
Since 2014, both active VAT payers and exempt entities have the right to issue invoices. If invoices are issued by tax-exempt entities, they will differ from regular invoices. The legal basis for the exemption is very important in this case.
Generally, the invoice of an entrepreneur exempt from VAT should contain:
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date of issue,
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next number,
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names and surnames or names of the taxpayer and buyer of goods or services and their addresses,
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name (type) of goods or services,
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measure and quantity (number) of delivered goods or scope of services rendered,
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unit price of a good or service,
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the total amount due,
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additionally, if the entrepreneur uses the objective exemption, the invoice must contain information on the legal basis. In the case of a taxpayer using a subjective exemption (limit of PLN 200,000), there is no obligation to indicate the legal basis for the exemption.
If the entrepreneur provides tax-exempt services pursuant to Art. 43 sec. 1 point 7, 37-41 his invoice should contain:
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date of issue,
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next number,
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first and last names or names of the taxpayer and buyer,
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service name,
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the amount the document relates to.
Types of invoices - pro forma invoice
A pro forma invoice does not have any tax consequences, it is not shown in the KPiR or VAT registers. It is issued to inform the customer about the price of a good or service, and is an auxiliary document in communication between contractors. Issuing a pro forma invoice does not release the taxpayer from the obligation to issue a regular invoice in a timely manner.
A pro forma invoice is issued in the same way as a sales invoice, therefore it may contain the data required for a regular invoice.
Importantly, along with the changes to the VAT Act (the type of invoice is not determined by its name, but the content of the data), there were concerns that pro forma invoices containing all the data, as in the case of sales invoices, would have tax consequences. However, these doubts were dispelled by the Minister of Finance. Certainly, pro forma invoices do not have any tax effects. They are treated as an auxiliary document (order) and not an accounting document.
Types of invoices - advance invoice
The advance invoice is used to document the received advances, advances and prepayments. This document confirms the receipt of the prepayment in full or in part before the goods are released or the service is provided.
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Important! An advance invoice is not issued when documenting advance payments for:
Receiving an advance payment for the above activities does not create a tax obligation, and thus there is no obligation to document them with an advance invoice. |
A correctly issued advance invoice should contain:
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date of issue,
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next number,
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names and surnames or names of the seller and buyer and their addresses,
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NIP numbers of the seller and the buyer,
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the date of receipt of all or part of the payment, if it differs from the date of invoice,
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the amount of the receivable received,
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tax amount,
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order or contract data, in particular: name (type) of goods or services, net unit price, quantity of ordered goods, net value of ordered goods or services, tax rates, tax amounts and gross value of the order or contract.
The tax amount is calculated according to the formula:
KP = (WB x SP) / (100 + SP)
where:
- KP - the amount of tax,
- WB - means the value of delivered goods or services rendered subject to the tax rate, taking into account the tax amount (gross sales value),
- SP - means the tax rate.
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Important! If the advance invoice does not cover the entire value of the transaction (sale of goods or services), the seller is obliged to issue a final (settlement) invoice at the time of its implementation. |
Types of invoices - final invoice
The final invoice is issued when the previously received advances, prepayments, and advances documented with advance invoices are settled. They are drawn up when the advance payments did not cover the entire amount due. On the final invoice, the sum of the value of the goods or services is reduced by the sum of the tax amounts shown in the invoices documenting the receipt of part of the payment.
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Important! The final invoice should contain a list of the numbers of advance invoices issued before the delivery of the goods or the performance of the service. |
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Important! If the advance invoices are for 100% of the contract value, then no final invoice is issued. |
Types of invoices - correction invoice
The entrepreneur issues a correcting invoice in the event of making a mistake or the need to make changes to the previous invoice. The situations in which corrective invoices should be issued are specified in art. 106j paragraph. 1 of the VAT Act:
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granting a price reduction in the form of a discount,
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granting discounts and price reductions,
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returning goods and packaging to the taxpayer,
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returning the buyer all or part of the payment,
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a price increase or a mistake in the price, rate, tax amount or any other item in the invoice.
A correctly issued corrective invoice should contain:
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the term "CORRECTING INVOICE" or "CORRECTION",
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sequential number and date of issue,
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the data contained in the original invoice to which the correction relates, as specified in art. 106e paragraph. 1 points 1-6 (date of issue, consecutive number, names and surnames or names of the taxpayer and buyer of the goods or services and their addresses, in certain cases NIP of the seller and the buyer, date of delivery or completion of the delivery of goods or service or the date of receipt of payment, o how much such date is specified and differs from the invoice issuance date) and the name (type) of goods or services covered by the correction,
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the reason for the correction,
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if the correction affects a change in the tax base or the amount of tax due - the amount of the tax base correction or the amount of the correction of tax due, respectively, broken down into amounts relating to individual tax rates and tax-exempt sales,
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in other cases - the correct content of the corrected items,
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indication of the period to which the adjustment relates (when the taxpayer grants a price discount or reduction on all supplies of goods or services made or provided to one recipient in a given period).
Types of invoices - VAT invoice margin
A margin VAT invoice is issued for transactions regarding:
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sale of used goods,
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trade in works of art,
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trade in collectors' items and antiques,
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tourist services.
In the case of VAT invoices, the margin is only taxed on the amount of the margin charged to the seller. In practice, the seller pays a lower amount of VAT to the tax office. The margin is understood here as the difference between the amount due to be paid by the buyer of the service or product and the price paid by the seller when purchasing them from other suppliers. The exact rules for applying the VAT margin procedure are specified in the VAT Act.
The VAT invoice must contain information about the type of activity:
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"Margin procedure for travel agencies" - for tourism services,
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"Margin procedure - used goods" - for the delivery of second-hand goods,
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"Margin procedure - works of art" - for the delivery of works of art,
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“Margin Procedure - Collectors and Antiques” - on delivery of collectors' items and antiques.
Types of invoices - simplified invoice
If the total amount due does not exceed PLN 450 (or EUR 100), the entrepreneur has the right to issue a simplified invoice. Such a document must contain data enabling the determination of the tax amount for individual rates.
A correctly issued simplified invoice should contain:
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date of issue,
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a sequential number, given within one or more series, which uniquely identifies the invoice,
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the number by which the taxpayer is identified for the tax,
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the number by which the buyer of goods or services is identified for the tax or value added tax under which he received the goods or services,
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the date of making or completing the delivery of goods or the performance of the service, if such a date is specified and differs from the invoice issue date,
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name (type) of goods or services,
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the amount of any price discounts or reductions, including in the form of an early payment discount, unless they have been included in the net unit price,
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the total amount due.
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Important! The simplified invoice cannot document:
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It is worth noting that the entrepreneur does not have to use simplified invoices.
Types of invoices - VAT invoice of a small taxpayer
Small, cash-based taxpayers can also issue invoices. The small taxpayer's invoice will differ from the normal invoice with the annotation "cash method".
Types of invoices - VAT RR invoice
The VAT RR invoice applies to transactions with flat-rate farmers. It is issued by the buyer of agricultural produce. The invoice is made in two copies - one for the buyer and the other for the farmer.
A correctly issued RR VAT invoice should contain:
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indication of "VAT RR Invoice",
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name and surname or name or short name of the supplier and buyer and their addresses,
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tax identification number or PESEL number of the supplier and buyer,
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the number of the supplier's identity card or other document confirming his identity, the date of issue of this document and the name of the authority that issued the document, if the flat-rate farmer delivering agricultural products is a natural person,
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the date of purchase as well as the date of issue and the sequence number of the invoice,
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names of purchased agricultural products,
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unit of measurement and quantity of agricultural products purchased and indication (description) of the class or quality of these products,
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unit price of the purchased agricultural product without the flat-rate tax refund,
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value of purchased agricultural products without the flat-rate tax refund,
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flat rate tax refund,
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the amount of the flat-rate tax refund on the value of purchased agricultural products,
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value of purchased agricultural products with the amount of the flat-rate tax refund,
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the total amount due together with the flat-rate tax refund, expressed digitally and in words,
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legible signatures of persons authorized to issue and receive invoices or signatures as well as the names and surnames of these persons,
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declaration of the supplier of agricultural products which reads as follows: "I declare that I am a flat-rate farmer exempt from tax on goods and services pursuant to Article 43 (1) (3) of the Value Added Tax Act."
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