A receipt with NIP number and a simplified invoice
The introduction of the obligation to include the buyer's NIP (tax identification number) on receipts documenting sales to another entity conducting business activity has caused many questions and doubts both on the part of sellers and buyers. One of the problems faced by entrepreneurs is the difficulty in obtaining an invoice up to PLN 450. Some sellers, referring to the provisions of the VAT Act in relation to low-value purchases, i.e. not exceeding PLN 450, only issue a receipt with the buyer's NIP number, which is a simplified invoice. However, when analyzing the provisions contained in the regulation of the Minister of Finance on keeping a tax book of revenues and expenses, we come to the conclusion that such a document cannot be the basis for posting the cost in the PKPiR. So what should a buyer do when making a business purchase? Can a receipt with a tax identification number (NIP), which is a simplified invoice in the light of the VAT Act, constitute the basis for classifying an expense as tax deductible costs?
Simplified invoice in the VAT Act
The provisions on the simplified invoice appeared in the VAT Act already in 2014. It is one of the types of VAT invoices, but it contains less data than in the case of a standard VAT invoice. The only required data of the buyer, which must be included in the simplified invoice, is its NIP (tax identification number). This means that the name of the company and the address of the buyer are not essential elements of it. A receipt with the buyer's tax identification number for the amount not exceeding PLN 450 or EUR 100 gross contains all the necessary data to be considered as a simplified invoice.
Art. 106e sec. 5 point 3 of the VAT Act
"The invoice may not contain, if the total amount due does not exceed the amount of PLN 450 or the amount of EUR 100, if the amount is specified in euro - the data specified in paragraph 1 point 3 concerning the buyer and the data specified in sec. 1 points 8, 9 and 11-14, provided that it contains data enabling the determination of the tax amount for individual tax rates. "
The elements that should be included in the simplified invoice include:
- invoice and sales dates,
- consecutive invoice number,
- seller data, including his tax identification number,
- Buyer's NIP (tax identification number),
- name of the product or service,
- the amount of a possible discount,
- the total amount due,
- information that allows you to determine the amount of VAT for individual tax rates.
Simplified invoices cannot be used to document certain types of transactions, such as, for example, mail order or intra-Community supplies.
Receipt with the buyer's tax identification number and the right to deduct VAT
At the beginning of 2020, revolutionary changes to the VAT Act were introduced, on the basis of which a seller who is a VAT taxpayer may issue a VAT invoice for a receipt for another VAT payer only if the receipt includes the buyer's tax identification number.
Art. 106b sec. 5 of the VAT Act:
"In the case of a sale recorded using a cash register confirmed by a fiscal receipt, an invoice for the taxpayer of the tax or value added tax is issued only if the receipt confirming the sale contains a number by which the buyer of goods or services is identified for the purposes of tax or tax added value. "[/ quotation] In the light of the act on tax on goods and services, a receipt containing the buyer's tax identification number for an amount not exceeding PLN 450 is a simplified invoice. Such a receipt is therefore the basis for a VAT deduction.
Receipt with tax identification number and the regulation on running PKPiR
A receipt with the buyer's tax identification number up to the amount of PLN 450 is a simplified invoice, so there are no contraindications to deduct VAT on this basis on purchases. However, the regulation of the Minister of Finance on keeping a tax book of revenues and expenditures allows for recording only specific types of costs with receipts (office supplies and cleaning products). The tax authorities also agreed with this position. This is one of the reasons for the low popularity of simplified invoices in previous years, as these documents have so far been a rarely used solution by entrepreneurs.
After the change in the regulations, which entered into force on January 1, 2020, sellers are more and more willing to use simplified invoices. Therefore, many entrepreneurs encountered difficulties in obtaining a standard VAT invoice if the value of purchases did not exceed PLN 450. Start a free 30-day trial period with no strings attached!
Doubts related to simplified invoices were explained in the announcements of the Minister of Finance.
Communication of 3 September 2019 entitled "Rules for issuing invoices for receipts from January 1, 2020"
„Pursuant to the currently applicable VAT regulations, the receipt up to the amount of PLN 450 gross (EUR 100) with the buyer's tax identification number (NIP) is a simplified invoice, equivalent to a regular invoice. In the case of such receipts (with the buyer's tax identification number), in order to confirm the purchase, the buyer does not have to additionally apply for a regular invoice ". Communication of 3 January 2020 entitled "New rules for issuing invoices for receipts"
“The simplified invoice is treated as a normal invoice that includes the complete details of the buyer. Thus, the taxpayer may, in particular, exercise the right to deduct input tax, as well as include the expense as tax deductible costs. "
Summing up, we can say that the provisions on simplified invoices have existed for several years, but due to the fact that they were never specified and raised doubts in terms of PIT settlements, they were not very popular. Now, due to the obligation to include the buyer's tax identification number on the receipt for purchases related to the conducted business activity, sellers more and more often use the possibility of documenting transactions with simplified invoices.
The Minister of Finance in the explanations confirmed that the receipt with the buyer's NIP number up to the amount of PLN 450 is a sufficient document confirming the transaction for the buyer who does not have to additionally apply for a standard VAT invoice. Therefore, in accordance with the currently adopted practice, the simplified invoice is the basis for the deduction of VAT on purchases and recognition of expenses as tax deductible costs.