SLIM VAT package
are solutions introduced to simplify VAT settlement. The solutions of the SLIM VAT package are to clarify and supplement some of the VAT provisions by removing unnecessary obligations that make running a business difficult. From January 01, 2021. as part of the SLIM VAT package, among others, changes in the settlement of correction invoices.
IN MINUS ADJUSTMENTS
In minus invoice corrections reduce the tax base and VAT as a result of:
- granting a discount (discounts and price reductions) after the sale,
- return of goods or packaging,
- refund to the buyer of all or part of the payment for the would-be sale of goods or services,
- a mistake in showing on the invoice an amount higher than the amount due is found.
Slim VAT - "in minus" corrections at the seller
In the case of issuing a corrective invoice "in minus", the seller will reduce the tax base on an ongoing basis, during the period of issuing the correcting invoice, if at the moment he has the appropriate documentation. He will not have to wait for the buyer to confirm receipt of the correcting invoice.
The requirement to receive confirmation of receipt of the correcting invoice is abolished
The seller should, however, have documentation that indicates that the conditions for issuing the corrective invoice have been agreed between both parties. Thus, the seller will lower the tax base in the tax period in which he has other evidence that is the basis for issuing a corrective invoice "in minus".
The catalog of documents confirming that both parties to the transaction know and accept its changed conditions is open. These can be: commercial documents, annexes to contracts, e-mail correspondence, proofs of payment or compensation of the adjusted transaction value.
In the case of issuing corrections for: export of goods, intra-Community supplies and provision of services outside the territory of the country - the requirement to have documentation entitling to reduce the tax base does not apply.
K"in minus" adjustments at the buyer
The buyer is obliged to settle the adjustments in the period in which the conditions for reducing the tax base were agreed with the seller. However, if the buyer does not settle the correction in the period in which he is entitled to reduce the tax base, then such reduction is settled on an ongoing basis.
Transitional provisions
The new settlement rules - SLIM VAT - apply to "in minus" correction invoices issued from January 01, 2021, unless a written agreement is concluded between the seller and the buyer before the first corrective invoice is issued in 2021. Then, until December 31, 2021. it will be possible to apply the current rules for settling corrective invoices. The seller will settle the correction in the period of receiving the confirmation of receipt of the correcting invoice, and the buyer will settle the correction in the period of receipt of the correcting invoice. The agreement may not be resigned earlier than after 3 months (counting from the end of the month in which the agreement was signed). The resignation must also be agreed in writing between both parties. After the date of the signed resignation, the amended regulations apply.
IN PLUS ADJUSTMENTS
In plus invoice corrections increase the tax base and VAT as a result of:
- the emergence of new circumstances after the original invoice has been issued,
- a mistake in the price, rate, tax amount or any other item in the invoice is found.
Slim VAT - k"in plus" correction at the seller
In the case of issuing a corrective invoice "in plus", the seller will increase the tax base in the period in which the reason for the increase in the tax base occurred. Therefore, the settlement date of the correction depends on the circumstances of its issuance.
- The seller will settle the correction on an ongoing basis in the month of its issuance, if the correction was issued in connection with a new post-transaction circumstance.
- If the correction was issued as a result of an error or other reasons that arose at the time of issuing the original invoice, the correction will be settled in the period in which the seller settled the original invoice.
The above rule also applies to making "in plus" adjustments in the case of intra-Community supplies, intra-Community supplies and exports of goods. At the same time, the increase in the tax base in the case of corrections of exports of goods and intra-Community supply takes place not earlier than in the VAT declaration submitted for the accounting period in which the original goods and intra-Community goods export transactions were shown.
K"in plus" correction at the buyer
The buyer has the right to settle the correction "in plus" on general terms, that is in the period in which the seller's tax obligation arose by way of the issued correction. However, not earlier than in the settlement for the period in which the buyer received the adjustment or in three consecutive billing periods.