RR VAT invoice issued by the buyer of agricultural produce

Service-Tax

Pursuant to the Act on Value Added Tax, an entrepreneur registered as an active VAT payer who purchases agricultural produce from a flat-rate farmer issues an invoice in duplicate documenting the said transaction. This is called VAT RR invoice, which should meet the requirements specified in the regulations. Let's check when it is possible to issue a VAT RR invoice and whether it is possible to deduct VAT from it.

Who is a flat-rate farmer?

Pursuant to the VAT Act, a flat-rate farmer should be understood as a farmer supplying agricultural products from his own agricultural activity or providing agricultural services, benefiting from tax exemption pursuant to Art. 43 sec. 1 point 3. The only exception are farmers obliged to keep accounting books under separate regulations.

Art. 43 sec. 1 point 3 of the VAT Act:
The supply of agricultural products from own agricultural activity by a flat-rate farmer and provision of agricultural services by a flat-rate farmer are exempt from tax.

Moreover, as indicated in Art. 115 above of the legal act, a flat-rate farmer who accounts tax on goods and services is entitled to a tax refund for the acquisition of certain means of production for agriculture subject to VAT. The amount of this refund (7% due for the supply of agricultural products less the amount of the flat-rate tax refund) is paid to the farmer by the purchaser of the agricultural products. VAT can be deducted in the settlement period in which the payment was made (i.e., as a rule, using the cash method).

The tax paid to the flat-rate farmer is, in principle, deductible input tax for the buyer. For this to happen, the entrepreneur must meet the following conditions (in accordance with Article 116 of the VAT Act, paragraph 6):

  • the acquisition of agricultural products is associated with a taxable supply,
  • payment of amounts due for agricultural products, including the amount of the flat-rate tax refund, was made to the bank account of the flat-rate farmer or to his account in the cooperative savings and credit union of which he is a member,
  • the document confirming the payment of amounts due for agricultural products will include the number and date of issuing the invoice confirming the purchase of these products, or the invoice confirming the purchase of agricultural products provides the identification data of the document confirming the payment.

RR VAT invoice - what should it contain?

As already mentioned, in the purchase of agricultural produce from a flat-rate farmer, the buyer (registered as an active VAT payer) is obliged to issue an invoice. Moreover, his duties also include self-calculation of the tax on goods and services.

The invoice documenting the purchase of agricultural products from a flat-rate farmer should be marked as VAT invoice RR. Most importantly, the original should be provided by the entrepreneur to the supplier.

The RR VAT invoice should contain at least:

  • name and surname or name or short name of the supplier and buyer and their addresses,
  • tax identification number or PESEL number of the supplier and buyer,
  • the date of purchase as well as the date of issue and the sequence number of the invoice,
  • names of purchased agricultural products,
  • unit of measurement and quantity of agricultural products purchased and indication (description) of the class or quality of these products,
  • unit price of the purchased agricultural product without the flat-rate tax refund,
  • value of purchased agricultural products without the flat-rate tax refund,
  • flat rate tax refund,
  • the amount of the flat-rate tax refund on the value of purchased agricultural products,
  • value of purchased agricultural products with the amount of the flat-rate tax refund,
  • the total amount due together with the flat-rate tax refund, expressed digitally and in words,
  • legible signatures of persons authorized to issue and receive invoices or signatures as well as the names and surnames of these persons.

Moreover, the VAT RR invoice should also contain the declaration of the supplier of agricultural products as follows: I declare that I am a flat-rate farmer exempt from tax on goods and services pursuant to Art. 43 sec. 1 point 3 of the Act on tax on goods and services.

A free template of VAT RR invoice can be downloaded from the article: VAT RR invoice - template with overview.

A flat-rate farmer is obliged to keep the original VAT invoices RR and copies of the declarations referred to in paragraph 4 Art. 116 of the VAT Act, for a period of 5 years from the end of the year in which the invoice was issued. This obligation also covers VAT RR invoices and statements when they are issued in electronic form.

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RR VAT invoice - changes from September 2019

From September 2019, as a result of the amendment to the VAT Act, VAT RR invoices may be submitted in addition to paper also electronically, which is regulated by the newly added paragraph. 3a to art. 116. Thus, a VAT RR invoice can be issued, signed and sent electronically with the consent of the supplier. However, in order for the document to comply with the newly added regulations, the VAT RR invoice should be provided by the supplier and the buyer with a qualified electronic signature, respectively.

The delivery of the original VAT invoice to the supplier is understood as sending it in electronic form.

In connection with the introduction of the possibility of preparing VAT RR invoices, a new structure of a uniform control file - FA_RR was created electronically. It will be submitted at the request of the tax authorities. The standard control file for VAT RR invoices includes, inter alia, the following information:

  • entity data,
  • the scope for which JPK is generated,
  • data on issued VAT RR invoices,
  • data on the issued corrections to VAT RR invoices
  • number of indicated statements,
  • information about the applied signatures qualified by the buyer or the person authorized to issue the invoice and the supplier or person
    entitled to receive an invoice.

Importantly, JPK_FA_RR does not apply when invoices are issued on paper.