Is a receipt required to correct a VAT invoice?

Service-Tax

The margin VAT invoice is issued in four basic situations, specified in Art. 119 and art. 120 of the Act on tax on goods and services. According to the regulations cited, it applies to:

  • providing tourist services,

  • delivery of used goods,

  • delivery of works of art,

  • deliveries of collectors' items and antiques, where the VAT tax base is a margin.

 

As in the case of regular VAT invoices, also in the case of VAT invoices, the margin may be returned by the buyer or the seller may grant him a discount, etc. Such events require the preparation of correcting invoices. Should the seller wait for the buyer to acknowledge the correction? Due to the fact that the invoice does not show VAT, is it necessary when the tax base is reduced? We explain below.

VAT invoice margin - what data should it contain?

The elements that should be included in the VAT invoice, the margin are specified in Art. 106e paragraph. 1 points 1-5 and sec. 2 and 3 of the VAT Act:

1.indication of the invoice - depending on the category of activity, the invoice should contain a selected phrase indicating the type of activity:

  • "margin scheme for travel agencies" - in the case of the provision of travel services for which the taxable base is, in accordance with Art. 119 (1) of the Act, the amount of the margin,

  • "Margin scheme - second-hand goods" - for the supply of second-hand goods for which the tax base is the margin,

  • "margin procedure - works of art" - for works of art for which the tax base is the margin,

  • "Margin Procedure - Collectors and Antiques" - for antiques and collectors' items where the tax base is a margin;

2. date of issue and sequential number;

3. first and last names or names or short names of the seller and the buyer and their addresses;

4. tax identification numbers of the seller and the buyer;

5. date of the delivery or completion of the delivery of the goods or the performance of the service, if such a date is specified and differs from the invoice issue date; in the case of continuous sales, the taxpayer may indicate the month and year of the sale on the invoice;

6. name of the good or service;

7. measure and quantity of goods sold or scope of services provided;

8. total amount due.

VAT invoice correction margin - when is it necessary?

Art. 29a sec. 10 of the VAT Act specifies the situations in which the tax base is reduced. These include:

  • 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 first three cases, it is necessary to obtain confirmation of receipt of the correcting invoice by the buyer (Art. 29a (13)).

 

Art. 29a sec. 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 shall be made provided that the taxpayer has, before the deadline for submitting a tax declaration for a given tax period, in which the buyer of the goods or the service recipient has received correcting invoice, confirmation of receipt of the correcting invoice by the buyer of the goods or the service recipient for whom the invoice was issued. Obtaining a confirmation of receipt by the buyer of the goods or the customer of the correcting invoice after the deadline for submitting the tax return 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. "

In art. 29a paragraph. 15 events for which confirmation is not required are listed. These include:

  • 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, telecommunications and radiocommunication services and services listed in item 140-153, 174 and 175 of Annex 3 to the Act.

When analyzing the above-mentioned regulations, it should be stated that par. 13 refers to the need to obtain confirmation only with the reduction of the tax base “in relation to the base specified in the invoice with the tax shown”. The margin VAT invoice does not contain this type of information, so it should be concluded that in this case the seller does not need a confirmation of receipt of the correction by the buyer.