With the entry of the obligatory National e-Invoice System (KSeF) into force, there will be some significant changes to the process of correcting and settling invoices.
It is worth mentioning a few important changes as for the method in which invoices are corrected.
- As a rule, all invoices covered by obligatory KSeF will be corrected with corrective invoices in a structured form. This also applies to invoices issued prior to mandatory KSeF going into force.
- Invoices exempt from mandatory issuance via KSeF will be corrected in their existing form.
- The possibility of correcting data on the invoice by using a credit note issued by the purchaser (both for invoices issued in KSeF and outside the system) will disappear.
- It will be permitted, mainly for technical reasons, to correct an invoice down to zero and re-issue the invoice, a situation that will occur if the wrong TIN is used on the contractor's invoice.
A while back, the Ministry of Finance introduced the so-called VAT SLIM package, which, according to the legislator, was supposed to bring relief to taxpayers concerning corrective invoice settlement. As is often the case, instead of relief, taxpayers experienced a lot of confusion and complexity in the system of settling and correcting invoices. However, once obligatory KSeF comes into force, the so-called 'simplifications' introduced in the form of reconciliations and the fulfilment of corrective conditions as factors for determining how corrective invoices are settled in minus, will become obsolete. So, as for invoices sent to buyers in a form other than a structured invoice, we will return to the confirmation of receipt of the corrective invoice.
As a reminder!
A structured invoice is an invoice issued through KSeF with an assigned number identifying it in the system.
Correction invoices - output tax
Currently, under Article 29a(13) of the VAT Act, the correction of output VAT takes place in the accounting period for which the taxpayer issued the corrective invoice. Of course, it must be made evident from documentation held by taxpayers that they agreed on the conditions for the reduction of the taxable base for the supply of goods or services specified in the corrective invoice, and that these conditions were met, and the invoice is consistent with the held documentation.
Once mandatory KSeF comes into force, there will be significant changes that, in our view, will simplify the system considerably, as the events that will determine when corrective invoices are settled will be much more defined than those currently in force. However, in order to correctly account for a corrective invoice in the correct period, it is necessary to determine which of the following categories we are dealing with.
Corrective invoices - structured
In the case of issuing corrective invoices reducing the taxable amount (in minus) in relation to the taxable base specified on the issued invoice where the tax is indicated, the reduction is made for the accounting period in which the taxpayer issued the corrective invoice in the form of a structured invoice.
Invoices other than structured corrective invoices
When issuing a corrective invoice in minus in a different form than a structured invoice, the reduction of the taxable base, in relation to the base specified on the issued invoice with the indicated tax, shall be made for the accounting period in which the seller received confirmation of receipt of the corrective invoice from the buyer of goods or services.
Corrective invoice transferred outside the KSeF system
If the corrective invoice has been forwarded outside of the KSeF system, e.g. due to the fact that it has been issued to a foreign taxpayer who is not obliged to use the system, (e.g. an entity with its registered office or fixed establishment outside Poland), or when this fixed establishment is located in Poland but is not involved in transactions documented by these invoices (FE), the reduction of the taxable base is made for the accounting period in which the seller received confirmation of receipt of the corrective invoice from this buyer.
Adjustments issued during malfunctions/unavailability of KSeF.
The in minus settlement of corrective invoices issued during the period of malfunction/unavailability of KSeF shall be made during the period of the event that occurred first, i.e. sending the invoice to KSeF after the technical difficulties ceased or upon the confirmation of receipt of the corrective invoice.
Important!
The aforementioned rules apply accordingly in the case of a mistake in the tax amount on the invoice and when issuing a corrective invoice showing a higher tax amount than due.
Correction invoices without VAT
The requirement to have a confirmation of receipt of the corrective invoice by the buyer of goods or services does not apply in the case of:
- export of goods and intra-Community supply of goods
- supply of goods and services for which the place of taxation is outside the territory of the country
- the sale of: electricity, heat or cooling energy, fixed gas, distribution services for electricity, heat or cooling energy, distribution services for fixed gas, telecommunication services and services listed in items 24-37, 50 and 51 of Appendix 3 to the Act
- when the taxpayer did not receive a confirmation of receipt of the corrective invoice by the buyer of goods or services despite a documented attempt to deliver the corrective invoice, and when there is documentation confirming that the buyer of the goods or services knows that the transaction was carried out in accordance with the terms and conditions specified on the corrective invoice.
In the case of import of services and supply of goods under the reverse charge mechanism, as well as intra-Community acquisition of goods, the correction in minus is made in the settlement for the settlement period in which the reason for reducing the tax base occurred.
IMPORTANT! In other cases, corrections to the taxable base and output tax remain unchanged!
In the case of correcting invoices in plus, the date when the reason for the correction occurred will continue to be decisive.
Corrective invoices for input tax
Corrective invoices - structured
In the event of reducing the taxable amount, the purchaser of goods or services is obliged to reduce the amount of input tax for the settlement period in which they received the corrective invoice in the form of a structured invoice. If the taxpayer has not reduced the amount of output tax by the amount of input tax specified in the invoice which the correction concerns, and they are entitled to such a reduction, the reduction of the amount of input tax shall be considered in the settlement period in which the taxpayer makes the reduction.
Structured corrective invoices made available to foreign taxpayers outside KSeF
In the case of an in minus adjustment, if the taxpayer issued a corrective invoice to a foreign taxpayer (not established nor with an FE in Poland) in the form of a structured invoice and made this invoice available to this purchaser in a manner other than through KSeF, the purchaser of goods or services is obliged to reduce the amount of input tax in the settlement period in which the seller issued the correction invoice in the form of a structured invoice. If the taxpayer issues an invoice other than a structured invoice and makes it available to the purchaser who is the aforementioned foreign entity in a manner other than by means of KSeF, the purchaser of goods or services is obliged to reduce the amount of input tax in settlements for the period in which they received the correction invoice.
Other than structured corrective invoices
In the case of a reduction in the taxable base, if the taxable person issued an invoice other than a structured invoice, the purchaser of goods or services is obliged to reduce the amount of input tax in the return for the period in which they received the corrective invoice.
Corrections issued outside KSeF that were subsequently sent to KSeF (e.g. during a period of KSeF malfunction/unavailability).
In the case of a reduction in the taxable base, if the taxpayer has issued an invoice other than a structured invoice, the buyer of the goods or services is obliged to reduce the amount of input tax in the settlement period in which they received the corrective invoice. When the date of receipt of the corrective invoice by the buyer is after the date of assignment of the number identifying that invoice in the National e-Invoice System, the date of receipt of that invoice shall be the date of the assignment of that number.
Our comment
The draft changes to the settlement of corrective invoices, in our opinion, is a step in the right direction. Since the Fiscal Office will, as it were, be able to monitor taxpayers' settlements in real time, there is no reason for an unclear and highly controversial system based on reconciliation and fulfilment of correction conditions.
The system will, however, require a little more commitment from taxpayers as well, at least initially. It is important to bear in mind the differences in the concept of issuance versus receipt of a structured invoice. It will not always be the same date and it may determine the period for which the correction invoice should be accounted for. Additionally, the date of issuance itself may be different because of the way in which it is issued, e.g. in principle issuing an invoice in KSeF means sending it to the system (provided the system does not reject it), but if the structured invoice was issued during a period of e.g. system failure, the date of issuance will be the date given by the taxpayer and not the date of sending it to KSeF, although in such a situation, the date of sending may determine the period in which it should be settled.
It is already worth analysing which of the described situations may apply to us and how we can collect information on events determining the period for settlement of corrections.
