New limitations of invoice issuance in case of evidencing sales on cash registers

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According to the proposed amendments to VAT Act, in case where a customer receives a fiscal receipt, an invoice may be subsequently issued only if the fiscal receipt includes VAT ID number of the customer. Currently, the invoice may be issued even if the VAT ID number is not stated in the fiscal receipt, which in fact is the prevalent case, as the majority of fiscal cash registers used by the taxpayers is not technically prepared for issuance of the fiscal receipts indicating the VAT ID number.

Proposed changes are to enter into force as of 1 July 2018 and shall have significant impact for industry, since:

  1. A complete review of the fiscal cash registers used by the taxpayer will be needed in order to identify the devices for which the function enabling indication of VAT ID number of the customer is not supported.
  2. In case where such devices are currently used, the taxpayer will have to either:
    1. Replace them by new fiscal cash registers or
    2. Undertake appropriate steps in order to secure compliance with the regulations, which may necessitate reorganization of the sale points.
  3. Non-compliance with the new regulations will entail additional VAT liability amounting to 100% of the VAT levied on a given transaction. This sanction will be imposed both on the taxpayer and the customer attempting to deduct VAT from the incorrectly issued invoice.

Proposed modification of VAT regime is currently subject to consultations. The time given for adaptation to the new circumstances will be limited. Therefore undertaking some preparatory actions is recommended before the amendments are passed. We are ready to discuss with you any necessary adjustments in your organization which may be needed in order to comply with the projected provisions.

Part of the discussed amendments has only recently been on the agenda of the Ministry of Finance, but has been eventually withdrawn from the legislation proceedings. The resumed work on the draft suggests thus that the Minister is determined to successfully implement these regulations.

If you have any questions please do not hesitate to contact us.