NEGATIVE VALUES IN THE VAT DECLARATION

Output VAT - sale

There will be situations in the activity of each entrepreneur, resulting in a reduction of both output VAT and sales turnover. The events causing this type of circumstances include:

the buyer returning previously purchased goods

return to the buyer of previously paid advances, installments, advance payments, etc., subject to taxation

granting rebates to the buyer

lowering the price of goods and services sold

lowering the VAT rate for sold products and services

lowering the tax amount

reimbursement to the buyer of undue amounts

Settlement of corrective invoices, lowering the tax base and the amount of tax due, is carried out on the principles set out in art. 29 sec. 4a-4c of the Act on tax on goods and services. If the tax base is reduced in relation to the base specified in the issued invoice, the tax base is reduced by the taxpayer provided that, before the deadline for submitting a tax declaration for a given accounting period in which the buyer of the goods or services received the invoice correction, confirmation of receipt invoice corrections by the buyer of the goods or service for whom the invoice was issued. Obtaining confirmation of receipt by the buyer of the goods or service of the invoice correction after the deadline for submitting the tax return for a given accounting period entitles the taxpayer to take into account the invoice correction for the accounting period in which this confirmation was obtained.

This provision applies in the event of a mistake in the tax amount on the invoice and the issuing of an invoice correction to the invoice in which the tax amount higher than the due amount is shown.

However, the seller does not need to have a confirmation of receipt of the correcting invoice when:

the export of goods and the intra-Community supply of goods

supply of goods and provision of services for which the place of taxation is outside the territory of the country

sale of: electricity, heat or cooling energy, line gas, telecommunications and radiocommunication services and services listed in item 140-153, 174 and 175 of Annex 3 to the VAT Act

in other cases, if the amount of tax was not shown in the issued invoice to which the correction relates

Input VAT - purchase

The values for the purchase are preceded by a minus sign in a situation where we have received an “in minus” correction invoice from the contractor, provided that this amount is greater than the positive values of the input tax.

The taxpayer does not have to provide explanations regarding the recognition of negative values in the VAT return. Such an obligation arises when submitting a correction of the declaration:

Tax Ordinance of August 29, 1997.
art. 81 § 2. The correction of the declaration is made by submitting the corrective declaration with the attached written justification of the reasons for the correction.