When and how to issue a duplicate invoice?
In Art. 106l para. 1 of the VAT Law mentions two circumstances in which a duplicate VAT invoice should be issued: it refers to cases where the document is lost or destroyed. The same article of the law also specifies who can issue a duplicate and at whose request.
Important!
In the event that a VAT invoice is lost or destroyed, the issuance of a duplicate is obligatory – entrepreneurs are required to keep documents of this kind until the tax liability expires.
The retention period for accounting documents is five years, starting from the end of the year in which the tax payment deadline ends.
The cases described in the law
In the first case, the taxpayer or a third party authorized by him to issue invoices may issue an invoice at the request of the buyer. The data on the duplicate invoice must be consistent with the information contained in the original invoice in the possession of the taxpayer or purchaser.
There may also be a situation in which it is the purchaser who issues a duplicate VAT invoice at the request of the taxpayer (further described in Articles 106k and 106d of the VAT Law). Then, too, it is necessary to keep the data fully consistent with the information contained in the second copy of the invoice in the possession of the buyer or taxpayer.
The third case detailed in Art. 106l of the VAT Law is a situation in which it is necessary to issue an invoice documenting a supply of goods for which the debtor is liable for tax. Such an invoice can be issued by enforcement authorities and bailiffs performing enforcement actions – they too issue a duplicate at the request of the buyer or debtor. Other conditions remain the same.
Important!
Only the original issuer can generate a valid duplicate VAT invoice. Even if you have a scan of a lost invoice or a PDF file (not an electronic invoice), you will need to reissue the document.
How to issue a duplicate VAT invoice?
When issuing a duplicate invoice, make sure that it meets several conditions:
- the word “DUPLICATE” must appear on the newly issued invoice – it is usually enough to select the appropriate option in the program to include the required wording in the printout;
- the duplicate should include the date of its issuance;
- the rest of the data on the invoice must one hundred percent match the information in the original.
Important!
A duplicate invoice has the same legal force as the original. It certifies that a transaction has been made and income tax can be deducted based on it.
How to book a duplicate invoice?
Duplicate invoice that did not reach the taxpayer
Just issuing or receiving a duplicate VAT invoice is not the end of the story – there are situations in which the document will not even reach the addressee – for example, it gets damaged in transit or is lost somewhere along the way. In such an arrangement, the duplicate issued later becomes the de facto original and should be booked according to the date the duplicate is marked. Therefore, the purchaser cannot deduct the tax on the purchased goods for himself until he receives a duplicate VAT invoice.
Duplicate invoice at the turn of the year
How do you record an invoice that reaches the buyer after the end of the calendar year in which the transaction took place? If an entrepreneur purchases goods or services in December 2019 and receives a duplicate invoice in April 2020, he should book the resulting cost in December. If he has already managed to file his tax return for the previous year, he will have to make adjustments to his return. VAT, in turn, should settle for the month in which he received the duplicate (in this case April 2020).
Duplicate invoice lost after it was received
The issuance or receipt of a duplicate VAT invoice does not always go hand in hand with the need to make any changes in accounting.
An example would be when a buyer requests a duplicate invoice to the original issuer. In this case, the duplicate can be attached to the original invoice. This does not require any accounting action on the part of any of the entities involved in the transaction – after all, the invoice has already been posted, and the only role of the duplicate is to certify this state of affairs.
Let’s summarize. In order to be able to deduct tax, three conditions must be met:
- tax liability on the purchased goods or services must arise;
- the actual purchase must occur;
- the taxpayer must have a VAT invoice for the concluded transaction.
Duplicate invoice vs. payment term
From the rules described above, situations may arise in which it will be difficult to settle the invoice on time.
EXAMPLE
Ms. Victoria, who runs a sole proprietorship, did not receive a VAT invoice when she purchased goods for the store. She asked the wholesaler to send the document, but her e-mail was overlooked by the wholesaler’s staff. After sending the message again, she received a duplicate invoice, but the due date had already passed.
In such a situation – unless the parties have agreed otherwise between themselves, for example, by creating rules of procedure for the transaction – it remains for Ms. Victoria to settle the payment as soon as possible. However, if for some reason she is unable to pay at this time, she should ask for an extension of the payment deadline, preferably in writing (an e-mail is perfectly sufficient). If the counterparty agrees to extend the deadline (including by email), this will be sufficient evidence in case of any disputes.
Important!
On a duplicate VAT invoice, it is not possible to change the date of payment – this type of situation should be resolved outside the document, for example, as stated above.
