Recognition of receipts as simplified invoices in the context of tax explanations

Time and Time first simplified invoices were introduced into Polish VAT rules in 2013 – as an action resulting from the implementation of EU legislation. In 2020 in view of the possibility to register on the NIP also the purchasers of the MF considered that the fiscal receipt could constitute a simplified invoice. Conflicting information on use Article 106e(5)(3) VAT on fiscal receipts — with the given NIP of the buyer — were the reasons for the tax explanations referred to below.

1. Purpose of tax explanations

Ministry of Finance 16 October 2020 issued tax explanations on the recognition of fiscal receipts as simplified invoices[1]. They specify when the fiscal receipts with the given buyer's NIP to value 450 PLN (100 EUR) are simplified invoices and what are the rules for recording simplified invoices in the new JPK VAT (declaration + registration).

2. Simplified invoice

The possibility of issuing simplified invoices has been introduced into the legal order through VAT. According to Article 106e(5)(3) VATU simplified invoices may be issued if the total amount of the claim does not exceed the amount 450 PLN or amounts 100 EUR.

The data required for simplified invoices is limited. The simplified invoice does not need to contain the buyer's name and address. However, it must not be forgotten that simplified invoices must contain the buyer's NIP.

A comparison of the data which is included in the standard invoice and not necessary for the simplified invoice is shown in the table below. The items marked with the deletion mean that the legislator does not require them to appear in the simplified invoice.

The buyer’s NIP receipts shall be simplified if the total amount of the claim per receipt does not exceed 450 PLN or 100 EUR. This is due to the possibility of recording VAT transactions at NIP registers.

As a result of this interpretation of the rules, it is the obligation of the purchaser who is a VAT taxable person to transfer the NIP number before the completion of the transaction (fiscalisation at the register office) if the sales between economic operators do not exceed the amount 450 PLN.

The buyer may also ask the seller to issue an invoice documenting the transaction to the value 450 PLN. In other words, it is not mandatory for the seller to document sales of B2B to the amount 450 PLN a fiscal receipt that is a simplified invoice.

According to the VAT rules cited by MF, the invoice is treated as a standard invoice. On the basis of this, the taxable person may, in particular, exercise the right to deduct input tax as well as to charge expenditure to the CUP.

At the same time, from 1 January 2020, it is assumed that it is not permissible to document the same sales more than one an invoice, i.e. it is prohibited to issue a simplified invoice in the form of a fiscal receipt up to the amount 450 PLN and VAT invoices to one and the same transaction.

3. Issue of invoices for the fiscal receipt

Ministry of Finance in 2020 in respect of the issue of invoices for fiscal receipts containing NIPs, different positions were taken, both in the messages issued and in individual interpretations. The fiscal stance raised a lot of concern among entrepreneurs obliged to register on the cash register the B2B transactions or the expectations of the buyer to change the data resulting from the tax receipt.

For example, Director of KIS in an individual interpretation from 4 September 2020, 0114-KDIP1-3.4012.409.2020.1.MT, stated that since the taxable person documents the sale not exceeding 450 PLN a fiscal receipt containing the customer (buyer) NIP and other data required by VATU rules should not be issued for the buyer of a separate document (standard invoice – on general terms). The simplified invoice is treated on an equal footing with an invoice issued on general terms and therefore has the taxpayer issuing the so-called simplified invoice fulfils the obligation to issue the standard invoice.

A different position was presented by the Director of the CIS in the following interpretation.

Individual interpretation

Director of KIS from 28 May 2020, 0114-KDIP1-3.4012.160.2020.2.ISK. Documenting the sale made to a VAT taxable person or value added tax taxable person not exceeding 450 PLN or 100 EUR (if this amount is specified in euro) by a fiscal receipt containing the tax identification number (NIP) or the taxpayer's value added tax number of the buyer and the other data required by the Act, it shall have the right to issue a so-called "normal" invoice to such a fiscal receipt if the purchaser returns the Applicant's fiscal receipt containing the NIP of that buyer.

In order to ensure that taxpayers are able to interpret the rules in a consistent manner, the tax explanations issued by the MF from 16 October 2020 concerning the recognition of fiscal receipts as simplified invoices. According to them, it is not possible to issue a regular invoice to the receipt to the value 450 PLN, which satisfies the conditions for its recognition as a simplified invoice. The buyer, in order to receive a simple invoice, should notify the seller before the transaction is fiscalised.

There is no possibility of double documenting transactions – sales cannot be documented by two invoices (simplified invoice – receipt with NIP, and standard invoice).

As regards consumers, the taxable person is obliged to issue an invoice, at the request of the purchaser of the goods or services, documenting, inter alia, the sale if the request for it was made within the time limit 3 months from the end of the month in which the goods or services were delivered or all or part of the payment was received. The fiscal receipt, originally issued to an individual, did not contain NIP, and therefore there is no contraindications to the standard invoice.

In the tax explanations, the MF points out the particular type of consumer resulting from legal regulations. According to the Regulation of the Minister of Finance from 29 September 2005 on the cases and arrangements for the reimbursement of tax on goods and services to diplomatic representations, consular offices, staff members of these representations and offices, and other persons aligned with them under international laws, agreements or customs (Journal of Laws of 2005, item 1618) for the purpose of VAT reimbursement, diplomatic representations and consular offices are consumers (natural persons not engaged in economic activities).

When making the purchase recorded on the register to the value 450 PLN, These units should not indicate the NIP number. Where the buyer wishes to receive a standard invoice, he should re-submit his request before the seller makes a fiscalisation of the transaction at the register office. The introduction of simplified invoices does not exclude the possibility of standard invoices when the value of sales does not exceed 450 PLN or 100 EUR.

4. Summary invoices for simplified invoices

Fiscal receipt containing buyer NIP up to amount 450 PLN or 100 EUR is a simplified invoice. This makes it impossible to issue a summary invoice for the abovementioned fiscal receipts.

The aggregate invoice may document the sales of goods or services from a given month (or other settlement period) and may not document sales already documented by invoice.

The inclusion in the invoice of the combined fiscal receipts constituting the simplified invoice results in a risk for the seller to pay double VAT as it will thus issue two invoices documenting the same transaction, i.e.

a simplified invoice and later an aggregated invoice covering sales of a documented simplified invoice (according to Article 108(1) VATU).

Only collecting invoices may be issued for fiscal receipts documenting sales above the quota 450 PLN (100 EUR) gross, with the buyer’s NIP number, as such fiscal receipts do not constitute an invoice within the meaning of VAT.

5. NIP invoice number to value 450 PLN

one from the requirements to be met by the invoice, including a simplified invoice, is the invoice number — another number given within the framework one or more series which clearly identifies the invoice. In the case of fiscal receipts, the seller is not able to indicate by which series the invoice identification number will be given.

The Ministry of Finance accepts that the simplified invoice number is the fiscal receipt number. Similar practice also applies in other EU countries, such as Germany.

This is due to the fact that the fiscal receipt number is another element of the receipt – placed after the total gross sales value, before the cash register number and the cashier mark.

6. Correction of unintended NIP error

The Ministry of Finance also refers to NIP errors on the fiscal receipt in the tax explanations issued. Depending on the nature of the error, a corrective note may be issued to:

• 1) invoice issued to the receipt,
• 2) a simplified fiscal receipt,
• it is necessary to accept the corrective note by the issuer of the invoice/simplified invoice.

Unintended error:

• 1) is an obvious mistake, e.g. no one digits, change numbers, or a mistake in one figure;
• 2) does not add the missing NIP number to the fiscal receipt or the change in the NIP receipt to the NIP number of another taxpayer.

The correction of the NIP error may be corrected according to the type of document issued. The following situations are possible:

1. invoice for the fiscal receipt above 450 PLN containing an NIP number with an error – it should be displayed with the same incorrect NIP number and then it can be issued to this invoice:

(a) by the purchaser, the correct NIP adjustment note, or

(b) by the taxable person, the correct NIP invoice;

1. to the fiscal receipt up to the amount 450 PLN containing the buyer's NIP number with an error may be displayed:

(a) by the buyer, the correct NIP adjustment note, or

(b) by the taxable person, the correct NIP invoice.

Where the buyer’s NIP is not included on the fiscal receipt, it is not possible to correct the NIP by adding it (a receipt without NIP does not constitute a simplified invoice).

7. Correction of the simplified invoice

There is an obligation to issue a corrective invoice to simplified invoices, including fiscal receipts deemed to be simplified invoices. This obligation arises from the cases identified in Article 106j(1) VATU, i.e. when:

• 1) price reductions were granted in the form of a discount,
• 2) price discounts and reductions,
• 3) a refund was made to the taxable person of the goods and packages,
• 4) the buyer has been reimbursed all or part of the payment,
• 5) the price or error in the price, rate, amount of tax or any other item in the invoice has been increased.

For the purpose of issuing the corrective invoice as the invoice number, indicate the fiscal receipt number and the unique register number by which the receipt was issued.

8. Simplified invoices and JPK VAT

Keep in mind that 1 January 2021 There was a change in the presentation of simplified invoices in JPK VAT. As also indicated in the tax explanations[2], taxpayers were to produce simplified invoices (NIP receipts) individually in JPK files marked FP.

The time limit for the presentation of simplified invoices containing the NIP of the taxpayer has been postponed to 1 July 2021 The change of deadline is due to the regulation of the Minister of Finance, Funds and Regional Policy from 17 December 2020 amending the Regulation on the detailed scope of the data contained in the tax returns and in the records on goods and services tax (Journal of Laws of 2020, item 2326).

According to section 11a DetailsZakrDanDeclR to 30 June 2021 (a in accordance with the current legal situation, i.e. taking into account the changes made by the previous sentence of the amending Regulation, 1 July 2021) taxpayers shall not record:

1. the amount of the tax base and the amount of the tax due resulting from the fiscal receipts recognised as simplified invoices,
2. data referred to in section 10 section 2 point 1 Details ZakrDanDeklR (e.g. NIP of the buyer, number and date of the invoice), and indications referred to in section 10 section 3 and 4 DetailsZakrDanDeklR (i.e. assigned to certain goods/signature services) GTU_01 – GTU_13 and, inter alia, MPP markings related to fiscal receipts referred to in point 1

• with the exception that during this period the value of the sales without tax (net) and the amount of the tax due resulting from the aggregated information from the sales records conducted via the fiscal cash register (i.e. from the fiscal reports) have been recorded in the records according to section 10 section 1 point 8 DetailsZakrDanDeklR. According to the MF information in the questions and answers, entitled ‘Filling JPK VAT with Declaration’[3] , in the section on document marking in response to Question No 23 reads:

„The ‘FP’ shall be marked with the invoices referred to in Article 109(3d) VATU, i.e. invoices to which the provisions apply Article 106h(1-3) VAT, i.e.:

• 1) invoices issued separately to the fiscal receipt,
• 2) invoices referred to in Article 106h(2) VATU, issued directly from the fiscal cash register, included in the daily report of sales from the fiscal cash register to which the receipt is not printed,
• 3) invoices in electronic form for sales documented by fiscal receipt.

The aggregate interim report, which is the basis for the VAT records, marked «RO» shall not be deducted by such invoices.

The «FP» shall not be subject to fiscal receipts recognised as simplified invoices, i.e. documenting the transaction to the amount 450 PLN gross (100 EUR) and containing buyer NIP. Transitionally, pending the entry into force of separate regulations on this issue, such documents should be recorded on the basis of a summary interim report marked ‘RO’, without the need for separate registration of so-called simplified invoices’.

The postponement of the deadline for registration of simplified invoices in JPK VAT should be assessed positively. The taxpayers will thus gain the time necessary to adapt the integration of financial and accounting systems with register offices, which will help reduce the labour intensity of the JPK file generation process.

Currently, the lack of integration of fiscal cash registers into the accounting programme means that simplified invoices which are fiscal receipts must be entered manually in the accounting records.

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1 https://www.gov.pl/web/finanse/objasnienia-podatkowe-z-dnia-16-pazdziernika-2020-r-dot-uznania-paragonow-fiskalnych-za-faktury-uproszczone (access: 9 April 2021).

2 https://www.gov.pl/web/finanse/objasnienia-podatkowe-z-dnia-16-pazdziernika-2020-r-dot-uznania-paragonow-fiskalnych-za-faktury-uproszczone (access: 13 April 2021).

3 https://www.podatki.gov.pl/jednolity-plik-kontrolny/jpk-vat-z-deklaracja/faq-jpk-vat-z-deklaracja/ (accessed in 2021; the source records an invalid day/month value).

Legal basis

• section 10 section 1 point 8, section 10 section 2-4, section 11a DetailsZakrDanDeklR,
• Article 106e(1), Article 106e(5)(3), Article 106h(1-3), Article 106j(1), Article 108(1), Article 109(3d) VATU.

The article comes from the book C.H. Beck Publishing House Changes in Taxes and Accounting 2021 including anti-crisis shields (series: Law in practice, year: 2021) + CD, under the editor-in-chief of Professor Artur Hołday - Ksiegarnia.beck.pl.