No confirmation of the electronic correction of the invoice - settlement on the basis of VAT
Taxpayers involved in the sale of goods and services must take into account the need to adjust sales. It may be related to errors made when issuing the invoice or to subsequent circumstances such as discounts or returns. Is it necessary to receive an invoice correction confirmation? In the article we present the lack of confirmation of electronic invoice correction!
The tax base
Pursuant to Art. 29a paragraph. 1 of the act on tax on goods and services (hereinafter referred to as the VAT Act), the tax base, subject to paragraph 2-5, art. 30a-30c, art. 32, art. 119 and art. 120 paragraph 4 and 5 is all that constitutes the payment that the supplier of goods or the service provider has received or is to receive for the sale from the buyer, recipient or third party. It also includes received grants, subsidies and other payments of a similar nature that have a direct impact on the price of goods or services provided by the taxpayer.
Pursuant to Art. 29a paragraph. 10 of the VAT Act, the tax base, subject to paragraph 13, is lowered by:
- amounts of discounts and price reductions granted after the sale;
- the value of the returned goods and packaging, subject to paragraph 11 and 12;
- all or part of the payment returned to the buyer received before the sale, if it did not take place;
- the value of the returned amounts of subsidies, subsidies and other payments of a similar nature, referred to in paragraph 1.
In the light of Art. 29a paragraph. 13 of the VAT Act in the cases referred to in sec.10 points 1-3, the reduction of the tax base in relation to the base specified in the invoice with the indicated tax is made provided that the taxpayer has the tax declaration obtained before the deadline for submitting the tax declaration for the given accounting period in which the buyer of the goods or the service recipient received a correcting invoice , confirmation of receipt of the corrective invoice by the buyer of the goods or the recipient for whom the invoice was issued. Obtaining confirmation of receipt by the buyer of the goods or the service recipient of the correcting invoice after the deadline for submitting the tax declaration for a given accounting period entitles the taxpayer to take into account the correcting invoice for the accounting period in which this confirmation was obtained.
When do we not need to receive a correction invoice confirmation?
The condition that the taxpayer has a confirmation of receipt of the correcting invoice by the buyer of the goods or the service recipient does not apply in the case of:
- export of goods and intra-community supply of goods;
- supplies of goods and services for which the place of taxation is outside the territory of the country;
- sale of: electricity, heat or cooling energy, line gas, electricity, heat or cooling energy distribution services, line gas distribution services, telecommunications services and services listed in item 140-153, 174 and 175 of Annex 3 to the Act;
- when the taxpayer has not obtained the confirmation despite the documented attempt to deliver the corrective invoice and the documentation held shows that the buyer of the goods or the service recipient knows that the transaction was carried out in accordance with the conditions specified in the correcting invoice.
What does the credit note contain?
According to Art. 106j paragraph. 1 of the VAT Act, the taxpayer should issue a correcting invoice if, after issuing the invoice:
- a price reduction was granted in the form of a discount;
- discounts and price reductions were granted;
- goods and packaging were returned to the taxpayer;
- all or part of the payment was reimbursed to the buyer;
- the price has been increased or there has been an error in the price, rate, tax amount or any other item in the invoice.
In addition, the corrective invoice should contain:
- the phrase "correction invoice" or the word "correction";
- the sequence number and the date of its issue, data contained in the invoice to which the corrective invoice relates, as specified in art. 106e paragraph. 1 points 1-6;
- name (type) of goods or services subject to correction;
- the reason for the correction;
- if the correction affects a change in the tax base or the amount of tax due - the amount of the correction of the tax base or the amount of the correction of output tax, broken down into amounts relating to individual tax rates and tax-exempt sales;
- in cases other than those indicated in point 5 - the correct content of the corrected items.
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Confirmation of receipt of a correction invoice
Confirmation of the fact that the buyer has received a correcting invoice may be made in any form, e.g. by return confirmation of receipt sent by post - in the form of a registered letter or a shipment containing a correcting invoice, a separate written confirmation of receipt of a correcting invoice, as well as in electronic form or sent back as a copy of a signed credit memo. This means that no provision specifies a special form in which confirmation of receipt of the corrective invoice would be required. It is important that the seller of goods or services for the purposes of settling the tax due on sales has information which clearly shows that the buyer has received an invoice correcting the sale.
The moment of receipt of the electronic correction invoice by the contractor is the moment when the invoice becomes available to him. As a result, he or she gets the opportunity to get acquainted with its content. Since in the case of corrections of invoices delivered via traditional mail, the acceptable form of documenting the delivery of the parcel is the return confirmation of receipt, such probative value cannot be denied of the information about the delivery of the correction invoice to the contractor by e-mail (automatic confirmation from the buyer's server). Regardless of the form of receipt of the confirmation of receipt of the correcting invoice, it should refer to one specific or several correcting invoices.
No confirmation of the electronic correction of the invoice
In economic practice, contractors do not always approve the correcting invoice. This very often applies to electronic corrections. Taxpayers send their contractors corrected invoices, which are not collected by them. However, the mere failure to read the delivered e-mail does not constitute its rejection.
This is confirmed in the individual interpretation of the Director of the National Tax Information of December 21, 2018, which indicates that:
"Thus, it should be stated that in the event that an electronic corrective invoice is delivered to the customer's e-mail address, but the company does not receive confirmation of receipt of the invoice or automatic information from the customer's mail server about its non-delivery and, at the same time, the documentation held by the company shows that the buyer of the goods knows that the transaction has been carried out in accordance with the conditions specified in the correcting invoice, the requirements referred to in Art. 29a paragraph. 15 point 4 of the Act on tax on goods and services ”.
The taxpayer may also receive a message from the server that the message has not been delivered. Thus, the taxpayer received information that the invoice correction did not finally reach the contractor. There are also situations when the taxpayer is informed by means of an automatic reply that the message has not been delivered to the client's mail server. If the company sends the customer a correction invoice and receives such a reply, it cannot recognize that it has made an effective attempt to deliver and make the correction. This message clearly indicates that the corrective invoice had no chance of reaching the customer at all and the company receives relevant information on this subject. In such a situation, the taxpayer will not be able to correct the tax. Thus, in the case of an electronic invoice correction, its confirmation is required and the sending itself is not enough.