Service for entrepreneurs - tax obligation

Service-Tax

Legal and office services for entrepreneurs - tax obligation 2014

From the beginning of 2014, the tax obligation in VAT with permanent legal and office services for entrepreneurs arises at the time of issuing the invoice. This rule results from Art. 19a paragraph. 5 pts 4b of the VAT Act. However, what is important, it will not arise when the taxpayer receives an advance payment or any advance payment, installment, etc. There is also no obligation to prepare advance invoices for this circumstance.

Pursuant to Art. 106i paragraph. 3 point 4 of the VAT Act, an invoice for the provision of permanent office and legal services should be issued - if the payment date is indicated - no later than on the date of payment.

In turn, according to art. 106i paragraph. 7 point 1 of the VAT Act, the invoice for the provision of permanent services for entrepreneurs in the discussed scope should be issued not earlier than 30 days before the delivery of the goods or the performance of the service - if the settlement period has not been indicated.

The term "not earlier than 30 days before" contained in Art. 106i paragraph. 8 of the VAT Act does not apply to the issuing of invoices for the supply and provision of services listed in art. 19a paragraph. 3, 4 and sec. 5 point 4 (including telecommunications services, continuous services, permanent legal and office services or energy supply), if the invoice indicates the settlement period to which it relates.

Service for entrepreneurs - other services

The moment when the tax obligation arises under VAT in 2014 in the case of other services related to the permanent service of entrepreneurs (advertising, accounting services, etc.), depends on the moment of service provision - in accordance with art. 19a paragraph. 1-3 of the Act.

This means that:

  • with regard to partially accepted services, the service is also considered to be performed in the case of performing part of the service for which the payment has been determined (Article 19a (2)),
  • a service for which, in connection with its provision, consecutive payment or settlement dates are established, shall be deemed to have been performed at the end of each period to which these payments or settlements refer, until the provision of this service is completed (Article 19a (3) ),
  • a service provided in a continuous manner for a period longer than one year, for which due to its provision in a given year, payment or settlement deadlines do not expire, shall be deemed to have been performed at the end of each tax year, until the provision of this service is completed (Article 19a, section 3).

In the case of "other services", the tax obligation under VAT will also arise when the taxpayer receives a prepayment, advance payment or a deposit in relation to the received amount before the goods are delivered or the service is rendered.