Deduction of VAT from the specification - is it possible?

Service-Tax

The act on tax on goods and services specifies when and on the basis of which documents the taxpayer has the right to deduct the amount of VAT. According to the provisions contained therein, the basic document entitling to settle VAT is the invoice. is it possible to deduct VAT from the specification? Check!

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 the data required by the law and regulations issued on its basis"

In the absence of any of the elements required by the regulations in certain situations, the document will not be considered an invoice, and thus - the recipient will not be able to deduct tax on its basis.

Invoice elements

According to the regulations, this document should contain at least:

  • date of issue,

  • next number,

  • names and surnames or names of the seller and buyer and their addresses,

  • NIP numbers of the seller and the buyer,

  • the date of completion or completion of the delivery of the goods or the performance of the service, if such date is specified and differs from the invoice issue date; in the case of continuous sales, the invoice may include the month and year of sale,

  • name (type) of the goods sold or the service performed,

  • the measure and quantity of goods sold or the scope of services rendered,

  • the net unit price of a good or service,

  • net value of the goods or services provided to which the sale relates,

  • VAT rates,

  • the sum of the net sales value with the division into sales subject to individual tax rates and sales exempt from tax,

  • the amount of tax on the sum of the net sales value of goods (services) broken down into amounts related to individual tax rates,

  • the total amount due.

However, the invoice does not always have to contain all the above-mentioned elements. The legislator specified when and what data the document may not contain, in order to nevertheless be considered an invoice.

VAT deduction from specifications

In the obligatory elements that should be included in the invoice, the legislator did not mention the word 'invoice' itself. Therefore, a document not entitled as an invoice, within the meaning of the law, may also be considered an invoice. The most important thing is that it contains all the data required in a given situation.

To sum up, according to the VAT Act - a document called e.g. a specification, which contains all the obligatory elements of an invoice, may be considered an invoice, and the taxpayer is entitled to deduct the input tax shown on the document.