An invoice with incomplete details will not be an invoice from January 2014

Service-Tax

The currently binding VAT Act indicates that the invoice should contain the data specified in the Regulation of the Minister of Finance of March 28, 2011 on invoicing. From 1 January 2014, the rules for issuing invoices will be transferred from the executive regulation directly to the Act on Value Added Tax. Thus, the importance of the provisions concerning the preparation of this type of documents will be raised.

What data on the invoice from 2014?

Pursuant to Art. 106e paragraph. 1 of the amended VAT Act, invoices issued from the beginning of January 2014 should contain:

1.date of issue,
2.a sequential number assigned within one or more series, which uniquely identifies it,
3.names and surnames or names of the taxpayer and buyer of goods or services and their addresses,
4.number by means of which the taxpayer is identified for tax purposes, subject to point 24 (a). and pursuant to which in the cases referred to in Art. 97 sec. 10 points 2 and 3 (WDT and the provision of services to contractors from the EU, where Article 28b applies), the invoice should additionally include:

  • the number by which the taxpayer is identified for tax purposes, preceded by the code PL,
  • the number by which the buyer of the good or service is identified for the purposes of value added tax in a given Member State, containing the two-letter code used for value added tax relevant for that Member State,

5. 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, and in the case of intra-Community transactions, the number for the purposes of this type of transaction;

6. the date of the delivery or completion of the delivery of goods or the performance of the service or the date of receipt of the payment referred to in art. 106b paragraph. 1 point 4, if such date is specified and differs from the invoice issue date,
7.name (type) of goods or services,
8.measure and quantity (number) of delivered goods or scope of services rendered,
9.unit price of a good or service excluding the tax amount (net unit price),
10.the amount of any discounts or price reductions, including in the form of a discount for early payment, unless they have been included in the net unit price,
11.value of the goods delivered or services performed, covered by the transaction, excluding the tax amount (net sales value),
12. tax rate,
13.total net sales value, with a breakdown into sales subject to individual tax rates and sales exempt from tax,
14.the amount of tax on the sum of the net sales value, broken down into amounts related to individual tax rates,
15. total amount receivable.

Additional information on the invoice from 2014

In the case of some invoices, it is necessary to include specific data in their content:

1. small VAT payers who settle for this tax with the cash method should include the word "cash method" in the invoice,
2.if the buyer issues an invoice on behalf of the supplier, the issued document is obliged to include the description "self-invoicing",

3. in the case of the delivery of goods or the performance of a service for which the buyer of the goods or services is obliged to settle the tax, value added tax or a tax of a similar nature, the issuer should include an additional description "reverse charge",
4.Taxpayers benefiting from the VAT exemption are required to indicate the basis for the exemption on the invoice (provision of the act or sub-statutory act, provision of the directive or other legal basis),
5. in the case of the provision of tourism services settled on the basis of a margin, the invoice issuer is obliged to include the following description: "margin procedure for travel agencies",
6. in the case of delivery of second-hand goods, the invoice issuer is obliged to include the following description: "margin procedure - second-hand goods",

7. in the case of delivery of works of art, the invoice issuer is obliged to include the following description: "margin procedure - works of art",

8. in the case of the delivery of collectors 'items and antiques, the invoice issuer is obliged to include the following description: "margin procedure - collectors' items and antiques",
9. if the subject of the intra-Community supply are new means of transport, the invoice should contain the date of approval of the new means of transport for use and:

  • vehicle mileage - in the case of land vehicles referred to in art. 2 point 10 lit. and,
  • the number of working hours of using the new means of transport - in the case of vessels referred to in art. 2 point 10 lit. b, and the aircraft referred to in article 1. 2 point 10 lit. c;

10. in the case of invoices issued in the name and on behalf of the taxpayer by his tax representative, the invoice should contain the name or surname and first name and surname of the tax representative, his address and the number by which he is identified for tax purposes.
11. in the case referred to in Art. 106c, the invoice should contain the name and address of the enforcement authority or the name and surname of the bailiff and his address, and in the place specified for the taxpayer - the name and surname or name of the debtor and his address.

Invoice and the right to deduct VAT

Therefore, it should be assumed that if the invoice issued in 2014 does not have the mandatory data specified in the Act, it cannot be considered an invoice within the meaning of Art. 2 point 31. The buyer will not be able to deduct input VAT from such a document.

For the issuer himself, the document will be less important in the face of the new regulations, because from the new year it is not the fact of issuing the invoice that will determine the moment when the tax obligation arises. Subject to certain exceptions, the tax obligation pursuant to art. 19a paragraph. 1 of the VAT Act will arise at the time of delivery of goods or performance of services. Thus, for the supplier of goods / services, a tax obligation will arise regardless of whether the invoice is issued or not, or in what form. After completing the transaction, the supplier will be required to charge and pay VAT.

To sum up, according to the regulations that will come into force in January 2014, an invoice will be a document (not only the one entitled as an invoice) with all the data specified in Art. 106e of the VAT Act. Doubts are therefore raised by the treatment of documents such as pro forma invoices, as nowadays they usually contain all the necessary data and differ from an ordinary invoice only in name. Currently, a pro forma invoice is not considered an invoice or even an accounting document. It is only an informative document, with no VAT or income tax consequences. However, in the light of the amended regulations, a pro forma invoice may be considered a full-value invoice, and thus have all the effects related to such a document. Issuing pro forma invoices from 1 January 2014 may have all the consequences provided for in connection with issuing an invoice.