WNT invoice received late and VAT
It is common that in the case of transactions with an EU contractor, the entrepreneur has difficulties obtaining the appropriate document confirming the economic event. Sometimes, after repeated requests, he manages to receive an invoice, sometimes even after several months. How in this case should the intra-Community acquisition of goods be accounted for, and how the intra-Community acquisition of goods invoice received with a delay affects the way it is booked.
What exactly is WNT?
According to the VAT Act, the intra-Community acquisition of goods (intra-Community acquisition of goods) is the acquisition of the right to dispose of goods as an owner, which, as a result of the delivery, are sent or transported to the territory of a Member State other than the territory of the Member State of commencement of shipment or transport by the person making the delivery, the buyer of the goods or on his behalf. Moreover, in order to qualify the purchase of goods from a foreign contractor as intra-Community acquisition, it should be made to an active VAT-EU taxpayer, i.e. a taxpayer registered for intra-Community transactions.
When does the tax obligation arise with WNT?
The amendment to the VAT Act, which entered into force at the beginning of 2017, did not change anything in terms of determining the moment when the tax obligation arises with WNT. In the case of this type of transactions, it still arises when the invoice is issued by the taxpayer of the value added tax, but not later than on the 15th day of the month following the month in which the goods being the subject of the intra-Community acquisition were delivered.
In connection with the above - how to proceed if, after the 15th day of the month in which the delivery took place, the buyer does not have an invoice documenting the transaction?
WNT settlement without an invoice
The lack of a document from an EU contractor does not oblige the buyer to withhold the settlement of a given transaction until receipt of the invoice. This is due to the fact that in the case of WNT, the taxpayer is the buyer and thus - he is obliged to prove the tax due on a given purchased goods.
As indicated in the VAT Act - even if the entrepreneur purchasing the goods does not receive the invoice by the 15th day of the month following the one in which the delivery was made, he is still obliged to tax the transaction and show it in the VAT return for that month.
Where can the taxpayer get information about the transaction if he does not have an invoice? In this case, he may use the data resulting from the order, supplier's offer or correspondence with the contractor.
Receipt of the invoice for WNT late
As already mentioned, the invoice for intra-Community acquisition of goods may reach the entrepreneur with a delay. Such an event can involve three situations.
First, the taxpayer may receive an invoice with the date of issue in the month of delivery. In such a case, the tax obligation arises on the date of issuing the document, therefore, if the taxpayer has already settled the intra-tax liability (assuming that the tax obligation arose on the 15th day of the month after the month in which the goods were received), he will be obliged to correct the VAT declaration (the tax obligation arose because a month earlier).
The second situation may concern the receipt of an invoice with the date of issue in the month following the delivery between the 1st and 14th of that month. In this case, the tax obligation will arise in the month following delivery. This means that if a Polish entrepreneur has shown intra-Community acquisition of goods on the 15th day of the month after delivery, he does not, as a rule, need to correct the declaration. However, this obligation may arise due to the exchange rates used to convert the value of the transaction (the correct rate is the average NBP exchange rate on the last day preceding the tax obligation).
Third, the invoice received by the taxpayer may indicate the date of issue after the 15th day of the month following the month of delivery. Then the situation is similar to the situation when the taxpayer does not receive the document at all. This means that the tax obligation arose on the 15th day of the month following the month in which the goods were delivered, and not on the invoice issue date. Therefore, the Polish entrepreneur does not have to correct the VAT declaration. It should be noted that then the conversion rate will not change either.
In the case of intra-Community acquisition of goods, the taxpayer must remember that he is responsible for taxing the purchase made. At the same time, it may not involve the need to settle the purchase of goods only with the receipt of an invoice. If the delivery has been made, the tax obligation will arise no later than on the 15th day of the month following the one in which he received the purchased goods.