The final invoice is the document ending the transaction. It is issued when advance payments were collected for the sale or service, and thus advance invoices were issued.
The final invoice is related to the last payment for a given good / service - it indicates the amount remaining to be paid and the amounts already settled on the basis of the issued advance invoices. If the advance invoices refer to the total value of the order, it is no longer necessary to issue a final invoice. The final invoice is therefore issued when some part of the price for the goods or service remains to be settled, not included in the previously issued advance invoices.
What elements should the final invoice contain?
The final invoice should therefore contain all the elements for a standard invoice:
- date of issue,
- another number that uniquely identifies it,
- names and surnames or names of the seller and buyer as well as their addresses and tax identification numbers,
- the date of completion / completion of the delivery of goods or performance of the service, if such a date is specified and differs from the invoice issue date; in the case of continuous sales, the invoice may include the month and year of sale,
- name (type) of goods sold / service performed,
- measure and quantity of goods sold / scope of services provided,
- net unit price of goods / services,
- net value of the goods or services provided to which the sale relates,
- tax rates,
- the sum of the net value of the goods / services covered by the invoice, broken down into tax rates and exempt sales
- the amount of tax on the sum of the net sales value of goods (services), broken down into amounts related to individual tax rates,
- the total amount due.
In addition, the final invoice should include a list of all advance invoices issued in connection with this transaction.
Method of settling final invoices
Pursuant to the provisions of the Personal Income Tax Act, revenues do not include advances for future deliveries of goods and performance of services. This means that the collected advance payments and the advance invoices issued for this circumstance (unless they represent 100% of the value of the entire order) do not constitute revenue for the seller or cost for the buyer and are not included in the KPiR. However, they are recorded in VAT registers, because the receipt of an advance creates a tax obligation in terms of value added tax, while the paying party gives the right to deduct the input tax.
The final invoice is, therefore, a document that allows the settlement of the transaction in terms of income tax, therefore it should be recognized in the KPiR in its full amount. However, if the invoice was issued only for order purposes - transaction summary and documentation, and the previously issued advance invoices settled the entire value of the transaction and were included in the KPiR, then the final invoice is no longer recognized in the revenue and expense book.
As for the VAT settlement, as mentioned above, the advance invoice obliges the seller to settle this tax, while the buyer gives the right to deduct it. Likewise for the final invoice. The obligation / right to settle VAT in the part not settled with advance invoices shall be settled on the basis of the final invoice.