Cancellation of issued invoices - when is it possible?


The provisions of the VAT Act do not provide for the possibility of canceling an invoice, but only correcting it in certain situations. In economic practice, however, it is possible to cancel an unnecessarily issued invoice, accepted by the tax authorities. However, this is an exceptional situation that can only arise if certain conditions are met. Check when it is possible to cancel issued invoices!

When can I cancel an invoice?

The only case in which it is possible to cancel issued invoices is a situation in which the invoice documents an action that has not been performed, provided that it has not yet been introduced into legal circulation - it has been delivered to the contractor, i.e. its issuer must have both copies of this document. It is about events that were documented before their occurrence and, as a result, were not concluded, e.g. an invoice was issued on the basis of an order, from which the contractor finally resigned, so there was no sale and therefore no tax obligation and at the same time the issuer has not yet handed over the invoice to the contractor. A similar situation will be mail order sale, when the seller sends the issued invoice together with the goods on delivery, and the addressee does not receive the sent order or pays for it, and the goods are returned to the seller together with the invoice. In this case, the action specified in the invoice was not performed and the contractor did not receive the invoice, therefore it is possible to cancel it.

In summary, if these two conditions are met, as regards not performing the activity covered by the invoice and not introducing it into legal circulation, such an invoice may be canceled.

How to correctly cancel an invoice?

Cancellation of issued invoices consists in crossing out both the original and the copy of the invoice, so that they will not be reused, and labeling them with a description that these documents have been canceled along with the date, e.g. "canceled on 01/12/2020" and the signature of the authorized person to issue these documents. It is also a good idea to describe the reason for canceling the invoice. The canceled invoices should be kept in the accounting records like all other sales invoices so as to maintain the continuity of the numbering, but they are not recorded. If the canceled invoice was previously included in the JPK_V7 file for a given settlement period, the taxpayer at the time of cancellation has the right to correct this declaration, and thus to correct the overstated VAT in the declaration.

You cannot correct errors in the invoice by canceling it

Invoices with incorrect data or values ​​are not subject to cancellation. Correction of such errors is made by issuing a note or a correcting invoice, depending on the error category. Likewise, an invoice that has already entered legal circulation cannot be canceled, although the event documented on it did not take place, in this case there is only the option of correcting it to zero by issuing a correcting invoice.

Lost invoice with the shipment

It may happen that the seller does not have the original invoice that should be canceled, e.g. if, when sending the goods with the invoice to the customer, the shipment is lost or stolen. Then, he may also cancel such an invoice by describing the copy he has and storing it together with documentation confirming that the transaction did not take place, e.g. with a document from a courier company, post office, etc. about the loss / damage of the parcel.

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Cancellation of an invoice in the system

Users of the system can easily and quickly cancel an issued invoice. To do this, go to the REVENUE »SALE tab, then click on the number of the issued invoice and select the MODIFY» CANCEL THE INVOICE option in the opened window of its view:

The canceled invoice will not be included in any records: KPiR and VAT.