Correction invoice - accounting rules

Service-Tax

Until the end of 2015, the method of booking corrective invoices was not clear, because the positions of the Ministry of Finance and tax authorities, together with tax advisers, were different. Since 2016, the regulations have become unambiguous, and most importantly - they have changed in favor of taxpayers. How should the corrective invoice be booked on the grounds of income tax and VAT in accordance with the regulations? We explain.

Correction invoice by the end of 2015

Until the end of 2015, the issue of posting corrective invoices was ambiguous, as the positions of the Ministry of Finance and tax authorities were different.

In the opinion of the Minister of Finance, the invoice correcting revenues and costs was not related to a new economic event, but to the situation with the documented original invoice, which did not raise any doubts when the correction concerned a price change, errors in the VAT rate or other errors in the original invoice. This meant that it was necessary to go back to the period of the original invoice. If the annual declaration was submitted and income tax paid - taxpayers had to generate corrections.

Ambiguous positions appeared when returning goods. In this case, in the opinion of the Ministry of Finance, taxpayers should also go back to the period of the original invoice. In turn, according to the tax authorities and tax advisers, the return of goods was a separate event. Therefore, in their opinion, the correcting invoice could be posted on an ongoing basis, which made it possible to avoid correcting annual declarations.

Correcting invoice from 2016

Since 2016, the tax regulations have unified the opinion of the Ministry of Finance and the tax authorities regarding the accounting of correcting invoices in favor of taxpayers - they also apply in 2017. According to the change, the invoice correcting both revenues and costs should be posted back to the period of the original invoice only when when the correction concerns a calculation error or other obvious mistake.

This means that in any other case, if the original invoice was issued correctly, and only later there were circumstances causing the obligation to issue a correction (return of goods, discount, etc.), corrective invoices can be posted on an ongoing basis. In this case, therefore, there is no obligation to go back to previous periods and generate corrections to the declaration.

Revenue Correction Invoice

In terms of income tax, if the correction is due to a calculation error or other obvious error, it is necessary to go back to the period in which the original invoice was recognized. Hence, if the corrective invoice is the result of another event (e.g. goods return), the posting is made in the current period.

Attention!

If in a given month the amount of revenues is lower than the value of the correction, the revenues are reduced only to the extent that they are allowed to, and the remaining value of the correction is recognized as an expense.

On the basis of VAT, in the case of corrective invoices reducing the tax base, the seller must, as a rule, have a confirmation of receipt of the correction by the buyer. Only then can it include the correction in the VAT sales register.

The confirmation of receipt of the correcting invoice is, among others:

  • confirmation of its receipt sent by e-mail,
  • a fax confirming receipt of the correcting invoice,
  • written confirmation of receipt of the correction,
  • confirmation of acceptance of the registered mail by the addressee,
  • sending a handwritten correction invoice.

Attention!

Confirmation of receipt of the correction by the buyer is not required for:

  • adjustments increasing the tax base,
  • export of goods and intra-Community supply,
  • delivery 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,
and if 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.

Invoice correcting costs

The rules of booking invoices correcting costs are the same as in the case of adjusting revenues. In terms of income tax, if the correction is due to a calculation error or other obvious error, it is necessary to go back to the period in which the original invoice was recognized. If the credit note is the result of another event (e.g. goods return), the posting is made in the current period.

Attention!

If in a given month the amount of costs is lower than the value of the correction, they are reduced to zero, and the remaining amount of the correction is posted as an increase in revenue.

On the basis of VAT, an invoice correcting costs is always booked in accordance with the date of its receipt.

Posting an invoice correcting an expense in the wfirma.pl system

To post an invoice correcting an expense in the wfirma.pl system, go to the EXPENSES tab, where we find and mark the original invoice. Then select the "Correct" option from the top menu bar.

In the Add expense correction window, complete the data from the received correcting invoice, such as the document number, payment method, dates as well as the value that should be preceded by a minus sign.

Posting the invoice correcting the sale in the wfirma.pl system.

To issue a correcting invoice, go to the REVENUES »SALES tab, select the invoice to be corrected and select CORRECT» INVOICE ITEMS from the top menu bar

In the invoice lines, enter the values ​​that should be on the invoice. The system will calculate the difference itself.

In the Justification of correction tab, please provide the reason for issuing the correcting invoice.