2020: Invoices for receipts – only with a purchaser’s tax ID number on a receipt
Starting from January 1, 2020, provisions referring to issuing invoices for receipts are to change. Entrepreneurs will be able to issue an invoice for a receipt only if a seller places a purchaser’s tax identification number on the receipt.
How fast should an invoice be issued for a receipt?
In accordance with art. 106i par. 6 of the VAT Act, the taxpayer is required to issue the invoice based on the receipt at the customer’s request within:
- by the 15th day of the next month – if the request takes place before the end of the month in which the goods have been delivered or the service has been provided, or whole or part of the payment has been received,
- not later than on the 15th day from the date of submitting the request – if the request for an invoice was made after the month in which the goods have been delivered or the service has been provided, or all or part of the payment has been received.
If the customer requests to issue an invoice after 3 months from the end of the month in which the delivery of goods, performance of the service or receipt, or whole or part of the payment took place – the entrepreneur is not required to issue the invoice.
Obligation to place the purchaser’s tax identification number on the receipt
From January 1, 2020, an additional mandatory element of a receipt will be introduced when an invoice is to be issued based on the receipt for the entity that conducts business activity. According to the amendment of art. 106b par. 5 of the VAT Act, in the case of sale to an entity conducting business, an invoice for the sales receipt will be issued only if the purchaser’s tax identification number is provided on the receipt confirming the sale.
The seller will not have the right to issue an invoice for a receipt that will not include the purchaser’s tax ID number, despite the purchaser submitting such a request within the statutory deadline.
Penalty for the lack of the purchaser’s tax identification number on the receipt
If an entrepreneur does not comply with the new regulations and despite the lack of the tax ID a purchaser issues an invoice for a receipt, he will be punished with 100% sanction. This means that an additional tax liability imputable to the seller will arise. The liability will amount to 100% of VAT which has been indicated on the invoice. Consequently, the seller will be forced to pay double amount of VAT due. When the purchaser uses an invoice issued based on a receipt, which did not include his NIP, he must also face a penalty of 100%.
Obligation to provide the purchaser’s tax ID number to help to avoid abuses
The obligation to place the purchaser’s tax identification number on a receipt is associated with abuse in the field of issuing invoices. New wording of art. 106b of the VAT Act has been entered to eliminate situations when – based on receipts collected from other entities – companies request invoices, although no such transactions were actually carried out. After receiving the invoice, dishonest entrepreneurs deduct VAT and reduce the amount of PIT, thereby lowering liabilities on account of the VAT and PIT.
To sum up, the introduction of a mandatory tax identification number on a receipt will cause that receipts, which do not contain the required data, become useless. After new regulations enter into force, the seller, who does not want to be subject to 100% sanction, will not issue invoices for receipts on which the purchaser’s tax ID number has not been provided. This is a tool aimed at sealing the tax system and eliminating intentional lowering of tax liabilities by purchasers.
Author: Martyna Gałązka