When is the wording on the cash register required on the invoice?
The phrase cash method is usually associated with invoices issued by the so-called a small taxpayer using this method of VAT settlements. Referring to the new regulations on invoicing, which have been in force since the beginning of 2014, there are several other cases where the phrase cash method will appear on the document.
Cash on invoice method not only for registered small taxpayers
The rules for issuing invoices, which entered into force on 1 January 2014, can be found in Art. 106e paragraph. 1 of the Act on tax on goods and services. Point 16 of that regulation indicates the situations where a wording should be included in addition to the standard information on the invoice checkout method. It is necessary when the tax obligation arises at the time of collecting all or part of the payment, and not - as with general rules - at the time of delivery of the goods or service.
Invoice cash method in practical terms
Situations in which the tax obligation depends on the date of receipt of payment, are indicated in art. 19a paragraph. 5 point 1 of the VAT Act.According to this provision, this is a situation:
- release of goods by the commissioner to the commission agent under a commission agreement,
- transfer of ownership of goods by order of a public authority or entity acting on behalf of such authority in return for compensation,
- the delivery of goods carried out in the course of execution, referred to in art. 18 of the Act,
- providing, on the basis of separate provisions, at the request of common, administrative and military courts or the public prosecutor's office, services related to court or preparatory proceedings, with the exception of services to which art. 28 of the Act, constituting the import of services,
- the provision of tax-exempt services in accordance with Art. 43 section 1 point 37-41 of the Act (insurance and financial services).
Additionally, as mentioned earlier, the wording method of the cash register should also appear on invoices issued by the so-called a small taxpayer, if he has chosen this type of VAT settlement. A small taxpayer may be an entrepreneur whose sales value in the previous tax year was not greater than the limit established by the act. This barrier is, in principle, EUR 1.2 million, which corresponds to PLN 5,068,000 this year - after conversion according to the average exchange rate of the National Bank of Poland as of October 1, 2013.
However, it must be borne in mind that the cash-based method does not apply to every small taxpayer upfront. In order to be able to settle in this form, the entrepreneur must first declare it on the VAT-R registration form.