Invoice with incomplete data and VAT settlement

Service-Tax

Detailed regulations on the rules for issuing invoices are listed directly in the VAT Act. The regulations clearly define what an invoice is and what data it should contain. Entrepreneurs often wonder if an invoice with incomplete data can be included in the records. Let's check it out!

Invoice definition

The concept of an invoice has been defined in Art. 2 clause 31 of the VAT Act. According to its wording, an invoice is understood as "a document in paper or electronic form containing data required by the Act and regulations issued on its basis”.

What data should the invoice contain?

According to Art. 106e paragraph. 1 of the VAT Act, the invoice should contain:

  • date of issue,
  • a sequential number assigned within one or more series that uniquely identifies the invoice,
  • names and surnames or names of the taxpayer and buyer of goods or services and their addresses,
  • the number by which the taxpayer is identified for tax purposes,
  • the number by which the buyer of goods or services is identified for the purposes of tax or value added tax under which he received the goods or services,
  • the date of the delivery or completion of the delivery of goods or the performance of the service or the date of receipt of payment, if it occurred before the sale, if such date is specified and differs from the invoice issue date,
  • name (type) of goods or services,
  • measure and quantity (number) of delivered goods or scope of services rendered,
  • unit price of a good or service without the tax amount (net unit price),
  • the amount of any price discounts or reductions, including in the form of an early payment discount, unless they have been included in the net unit price,
  • value of the goods delivered or services performed, covered by the transaction, without the tax amount (net sales value),
  • tax rate,
  • the sum of the net sales value, with a breakdown into sales subject to individual tax rates and sales exempt from tax,
  • the amount of tax on the sum of the net sales value, broken down into amounts related to individual tax rates,
  • the total amount due.

In addition, a small taxpayer paying by the cash method should include the annotation "cash method" on invoices issued by himself.

However, in the case of the supply of goods or the provision of services exempt from tax pursuant to Art. 113 paragraph. 1 and 9, art. 43 sec. 1 of the VAT Act or regulations issued pursuant to Art. 82 sec. 3, the invoice should indicate:

  • provision of the act or act issued on the basis of the act, on the basis of which the taxpayer applies the tax exemption,
  • a provision of Directive 2006/112 / EC which exempts such supply of goods or services from tax, or
  • another legal basis which indicates that the supply of goods or services is exempt.

A taxpayer settling in the margin system should include appropriate markings on their invoices. And so in the case of:

  • tourism services the term "margin procedure for travel agents",
  • delivery of second-hand goods, the term "margin procedure - second-hand goods",
  • delivery of works of art the phrase "margin procedure - works of art",
  • delivery of antiques and collectors the term "margin procedure - collectors and antiques".

The full catalog of data that must necessarily be on the invoice can be found in Art. 106e of the VAT Act.

Invoice with incomplete data - when is it considered correct?

The legislator specified in Art. 106e paragraph. 4 what data and in what situations the invoice does not have to contain. And so in the case of:

1.delivery of goods or performance of a service for which the buyer of the goods or the service recipient is obliged to settle the tax, the invoice does not include:

  • tax rates,
  • the sum of the net sales value, with a breakdown into sales subject to individual tax rates and sales exempt from tax,
  • tax amounts on the sum of the net sales value, broken down into amounts related to individual tax rates.

2. legal persons, organizational units without legal personality and natural persons, who are not taxpayers, occasionally making intra-Community supplies of new means of transport, the invoice does not contain:

  • the number by means of which the taxpayer is identified for tax purposes, subject to point 24 (a). and,

3. when the taxpayer is obliged, at the request of the buyer of the goods or services, to issue an invoice documenting the sale exempt under Art. 43 sec. 1, art. 113 paragraph. 1 and 9 or regulations issued on the basis of art. 82 sec. 3, subject to article 22. 117 point 1 and article. 118 - the invoice does not contain:

  • tax rates,
  • the sum of the net sales value, with a breakdown into sales subject to individual tax rates and sales exempt from tax,
  • tax amounts on the sum of the net sales value, broken down into amounts related to individual tax rates.

What data may the invoice not contain?

Moreover, in certain situations, the legislator allows for certain freedom of including certain data on the invoice:

1.in the case of a taxpayer with a registered office or permanent place of business in the territory of Poland (in the absence of such a permanent place of residence or habitual residence from which these activities are performed), who supplies goods or provides services, and the place of delivery or the benefit is in a different territory (European Union), the invoice may not contain:

  • the amount of any price discounts or reductions, including in the form of an early payment discount, unless they have been included in the net unit price,
  • tax rates,
  • the sum of the net sales value, with a breakdown into sales subject to individual tax rates and sales exempt from tax,
  • tax amounts on the sum of the net sales value, broken down into amounts related to individual tax rates.

2.in the case of a taxpayer with a registered office or permanent place of business in the territory of Poland (in the absence of such a permanent place of residence or habitual residence from which these activities are performed), who supplies the goods or provides services, and the place of the delivery or benefits are provided in the territory of a third country (outside the European Union), the invoice may not contain:

  • the number by which the buyer of goods or services is identified for the purposes of tax or value added tax under which he received the goods or services, subject to point 24 (a). b,
  • tax rates,
  • the sum of the net sales value, with a breakdown into sales subject to individual tax rates and sales exempt from tax,
  • tax amounts on the sum of the net sales value, broken down into amounts related to individual tax rates.

3.If the total amount due does not exceed PLN 450 or EUR 100 - the simplified invoice may not contain:

  • name and surname or name of the buyer of goods or services and his address,
  • measures and quantity (number) of delivered goods or scope of services provided,
  • unit price of a good or service without the tax amount,
  • value of the goods delivered or services performed, covered by the transaction, without the tax amount (net sales value),
  • tax rates,
  • the sum of the net sales value, with a breakdown into sales subject to individual tax rates and sales exempt from tax,
  • tax amounts on the sum of the net sales value, broken down into amounts related to individual tax rates.

To sum up, the entrepreneur received detailed guidelines in the act on the issues of necessary data, which should not be used and which can be omitted in certain situations when issuing an invoice with incomplete data, treated as a simplified invoice.

Invoice with incomplete data and VAT deduction

In the absence of any of the elements required by the regulations in certain situations, an invoice with incomplete data will not always be considered a document on the basis of which it will be possible to deduct VAT.

Example 1.

The taxpayer received an invoice documenting the delivery, on which the seller, for unspecified reasons, will not include the buyer's tax identification number or its identifier. The document will not contain the elements specified in Art. 106e paragraph. 1 point 4 or 5 of the VAT Act, therefore it will not meet the basic requirements imposed by the Act.

What is worse, in the opinion of Tax Advisors, the lack of a NIP number is not an error that can be corrected with a corrective note or an invoice correcting formal errors. The lack of NIP (tax identification number) on the invoice is a breach consisting in failure to fulfill the obligation, and not a mistake when filling out the data.

How to deal with the problem of a defective invoice?

First of all, it should be noted that pursuant to Art. 19a paragraph. 1 of the VAT Act, the tax obligation arises when the goods are delivered or the service is provided, subject to paragraph 5 and 7–11, art. 14 sec. 6, art. 20 and art. 21 sec. 1. In most situations, it is therefore determined by the event itself and not by the formal act of issuing an invoice (subject to Art. 19a (5) (3) and (4)).

Therefore, the supplier, regardless of whether he issued an invoice or not, must prove the event in order to tax it with value added tax. The document that the supplier has issued incorrectly will not be an invoice in accordance with the Act.

So there is nothing to prevent the buyer from asking for an invoice with all the necessary data once again.