Construction services 2014 - invoice issue date

The amended VAT Act, which comes into force in January 2014, will affect, inter alia, for changes in the issue of invoices. The period of 7 days for issuing an invoice, valid until the end of 2013, counted from the date of delivery of the goods or performance of the service, is now forgotten. In its place, a provision is introduced directly in the VAT Act, and not in the regulation as before, stipulating that the invoice in 2014 is issued no later than on the 15th day of the month following the month in which the goods were delivered or the service was performed. However, certain exceptions are provided for in the act from the above general rule. One of them concerns entrepreneurs providing construction and construction and assembly services.

End of the 7-day deadline for issuing an invoice

In January 2014, the ordinance of the Minister of Finance on, inter alia, the issue of invoices (dated March 28, 2011) ceases to apply.

The issues regulated so far in the executive act are transferred to the VAT Act, but in a modified form. The deadlines for issuing invoices are specified in Art. 106i of the amended act:

"The invoice is issued no later than on the 15th day of the month following the month in which the goods were delivered or the service was performed (...)".

This is a general rule, from which the legislator, however, provided for exceptions. They concern, inter alia, taxpayers providing construction and construction-assembly services.

30 days for invoicing for construction services

Until now, taxpayers providing construction or construction and assembly services have issued an invoice in accordance with the general rule, i.e. up to 7 days from the date of service provision. Since 2014, they have been assigned a special invoice issuing rule, which says that:

“The invoice shall be issued no later than on the 30th day from the date of services provision - in the case referred to in Art. 19a paragraph. 5 point 3 lit. a (provision of construction or construction and assembly services) (...) ”.

In connection with the above, the providers of construction and construction-assembly services in 2014 issue an invoice no later than on the 30th day from the date of service provision. Such wording of the act may at the same time extend the time limit for issuing an invoice in relation to the generally applicable deadline, and shorten it. This is best illustrated by practical examples.

Example 1a.

On January 5, 2014 the service of renovation of the utility room was performed. On the same day, the owner accepted the work done without raising any objections. The company providing the service issues an invoice at the latest:

• on February 4, 2014.

Example 1b.

On January 5, 2014, the building materials warehouse sold a range of gypsum boards. The customer picked up the goods. The company delivering the goods shall issue an invoice at the latest:

• on February 15, 2014.

Therefore, it should be noted that the special moment of issuing an invoice for those providing construction and construction-assembly services may shorten the time needed to document the sale in relation to the generally applicable rules.

Example 2a.

On March 23, 2014, the renovation of the staircase at the contractor's premises was completed. The customer signed the repair delivery report on the same day. The company providing the service issues an invoice at the latest:

• on April 22, 2014.

Example 2b.

On March 23, 2014, the windows were sold. The company delivering the goods issues an invoice at the latest:

• on April 15, 2014.

Therefore, construction service providers may also, in certain cases, benefit from a particular time when the invoice is issued, delaying it compared to generally applicable rules. In their case, this is of particular importance, mainly due to the fact that from January 2014, for construction and construction and assembly services, the tax obligation arises at the time of issuing the invoice (Article 19a (5) (3a) of the amended VAT Act).