Invoice duplicate when specifying the initial value

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In the course of their business activities, entrepreneurs purchase various types of fixed assets. However, not all companies have sufficient resources to acquire new or used assets. In such situations, entrepreneurs use private property to use it in their business activities. In such a situation, can a duplicate invoice be the basis for determining the initial value of the fixed asset?

Contribution of private property to the company

An entrepreneur running a business has the opportunity to use private property by contributing it to the company he runs. This activity may be performed by drawing up a written declaration, in which it specifies the asset or components of property that are transferred from private use for business purposes on a given day.

By means of the above declaration, the entrepreneur changes the manner of using the property component from private use for the purposes of the conducted business activity. An important issue in the process of contributing a given asset is that its initial value must be determined in order to then include this value in the fixed assets register. The next step will be to start (from the month following the month of introducing the above-mentioned asset to the records) making depreciation write-offs from the previously determined value into the company's costs.

Initial value of contributed private property

A natural person running a business is obliged to keep records of the company's assets, in which there are all fixed assets acquired for the company and contributed from private property, subject to depreciation. In the case of purchasing fixed assets or contributing private property to the company, the entrepreneur has the right to depreciate the given fixed asset, starting from the month following the month of putting the given asset for use.

However, in order to be able to enter a new asset into the fixed assets register, first of all, the initial value of the contributed property should be determined, which depends on the method of its acquisition. If the asset was acquired through, inter alia:

  1. purchase, then the initial value will be the purchase price,
  2. manufacturing, then the initial value will be the manufacturing cost,
  3. inheritance, donation or otherwise free of charge, then the market value on the day of purchase should be considered the initial value, unless the donation agreement or the free transfer agreement specifies this value in a lower amount.

Loss of the original invoice and duplicate invoice

In the event that private property was acquired by purchase, which was later contributed to the company, the initial value will be the purchase price indicated on the invoice or on the duplicate invoice, if the original invoice is lost.

Sometimes it may happen that the original invoice has been lost and the entrepreneur has obtained a duplicate invoice for the purchase of private property so that he can enter it into the company at a later time. So, in this case, can it determine the initial value of private property on the basis of a duplicate and use it for business purposes? Indeed, a duplicate invoice is also proof of the acquisition of the entrepreneur's private property and on its basis a given fixed asset can be brought in for the needs of business activity on the date of issuing the duplicate invoice.

This is also confirmed by the position of the Director of the Tax Chamber in Katowice in the individual interpretation of January 5, 2012, ref. No. IBPBII / 2 / 415-1133 / 11 / MW and the Director of the Tax Chamber in Warsaw in the individual interpretation of October 30, 2009, ref. No. IPPB1 / 415-617 / 09-2 / ES.

Subsequent Disclosure of Private Property

Another situation that occasionally occurs is that the private property contributed is erroneously not disclosed in the fixed assets register. In the course of the conducted analysis, it turns out that the original purchase invoice cannot be found and the entrepreneur decides to obtain a duplicate.

The entrepreneur has the right to determine the initial value based on the duplicate invoice obtained. In this case, the type of initial acquisition of a private asset is an acquisition, so the initial value of the asset will be the purchase price based on the duplicate invoice.

After determining the initial value, the entrepreneur should enter the given asset into the fixed assets register on the date of issuing the duplicate.

Starting from the month following the month of entering the above-mentioned asset into the fixed assets register, the entrepreneur has the right to start making depreciation write-offs.

Therefore, it should be remembered that a duplicate invoice is also a proof of incurring an expense and you can easily use it to determine the value of the acquired fixed asset.

A similar position is confirmed by the Director of the Tax Chamber in Katowice in the individual ruling of January 19, 2010, ref. No. IBPBII / 2 / 415-1068 / 09 / MM.

Not only an invoice or a duplicate

It is worth emphasizing that if it is not possible to determine the purchase price of fixed assets or their parts acquired by taxpayers before the date of establishing the records or drawing up the list referred to in art. 22n of the PIT Act, the initial value of these funds is assumed in the amount resulting from the valuation made by the taxpayer, taking into account the market prices of fixed assets of the same type from December of the year preceding the year of establishing the records or drawing up the list, and the state and degree of their wear.