How to issue correction invoices?

Every entrepreneur issues invoices. In certain situations there is a need to issue a correction invoice. What is a correction invoice, when should it be issued, what data should it contain and how to transfer the document?

A correction invoice is one of the main documents that a business person has to deal with. Its issuance is determined by the provisions of Article 106j (1) of the VAT Law, in particular, the situations in which it must be issued and the information that must appear on it.

What is a correcting invoice?

A correction invoice is a document issued by the seller in the following situations:

- granting a discount or rebate,

- Return of goods, packaging or payment,

- decrease or increase the tax base,

- A mistake in the price of a product or service.  

There are different methods of issuing a correction invoice depending on the reasons. The Slim VAT package, introduced in 2021, more precisely defined the method of issuing "in plus" correction invoices (increased tax base) and changed the rules for recording "in minus" invoices (reduced tax base). In the case of "in minus" corrective invoices, entry in the records is subject to the following conditions in the month of issuance of the invoices: 

• having legal documentation confirming the obligation to issue this invoice
• the occurrence of the actual event that results from this adjustment. 

What data should the correcting invoice contain?

The information that should be included in the correcting invoice is specified in Article 106j (2) of the VAT Law. These are:

- Invoice sequence number and date of issue,

- data from the original invoice to which the correction invoice applies:

- specified in Article 106e (1) (1-6):

- issue date,

- Invoice number within the numbering series used,

- the number identifying the original invoice in the National e-Invoice System, if the correction invoice is in the form of a structured invoice, 

- The names and surnames or names and addresses of the buyer and seller,

- TIN or other number, identifying the taxpayer for tax purposes,

- the number by which the purchaser of goods or services is identified for tax or value-added tax purposes, under which he received the goods or services,

- The name (type) of service or goods covered by the adjustment.

- the amount of adjustment of the tax base or the amount of adjustment of output tax with a breakdown of the amounts relating to individual tax rates and exempt sales (if the adjustment changes the tax base or the amount of output tax),

- the correct content of the adjusted items (where the change does not affect the tax base).

The corrective invoice may include:

- The words "CORRECT INVOICE" or "CORRECTION."

- reason for correction.

It should be borne in mind that in a situation where a taxpayer gives a discount or reduction in price, he may issue a corrective invoice relating to the supply of goods or services to a single customer in a given period, which:

- additionally includes the period to which the said discount or reduction applies,

- may not include the name (type) of goods or services covered by the adjustment, if the adjustment applies to the entire supply of goods and services provided.

What are the requirements for receiving/transferring the document?

As part of the Slim VAT package, as of January 1, 2021, changes have been introduced regarding correcting invoices. Until now, it was mandatory to confirm receipt of the correction by the buyer in all situations: "in plus", i.e., when the tax base increased, and "in minus", i.e., when the tax base decreased. Currently, acknowledgment of receipt for an in minus adjustment is not required. In this case, documentation that clearly confirms the fact that the parties to the transaction have established the conditions for correcting invoices is sufficient. These changes are set forth in Article 29a (13) of the VAT Law. 

In the case of an "in plus" correcting invoice, according to Article 29a (17) of the VAT Law, it should be included in the records for the accounting period in which the reason for the increase in the tax base appeared. Here, the legislator has not made the obligation to show an "in plus" correcting invoice in the accounts dependent on confirmation of receipt of the correcting invoice by the purchaser or additional documentation.

How to issue several correction invoices to the same invoice?

Legal regulations do not limit the number of correction invoices issued for a given sales invoice. If there is a basis for issuing them, a business person may issue several. The content of such an invoice should always refer to the original invoice. When issuing a subsequent correcting invoice to a given sales invoice, reference must also be made to the original invoice, but taking into account the changes caused by the previous correcting invoice issued to the invoice in question. It is not allowed to issue a correction invoice referring in its content to a previous correction invoice issued for a given sale.