What is a named invoice?
A personal name invoice or invoice for an individual is a document that differs from an ordinary VAT invoice in just a few details. More important, however, is the fact that the use of a named invoice is reserved for transactions between an entrepreneur and a non-business individual, or an individual who does not make the transaction for purposes related to his business.
EXAMPLE
Mr. Gregory runs his own business, in which he performs renovation and finishing work. However, he decided to buy a computer for his daughter, and although this is not a business-related expense, he can still request an invoice, and the store must fulfill such a request. However, this invoice will not be issued to Mr. Gregory’s company data, but to his personal data.
A named invoice is also a solution for those entrepreneurs who do not issue receipts and do not have a cash register. As an alternative to a receipt, a named invoice may be just that – a named invoice.
So how does a named invoice differ from a classic VAT invoice?
A named invoice looks a little different than an invoice that is issued to a company. The biggest difference is that there is no place for the customer’s TIN number on a named invoice – since 2012, the TIN has been assigned by default only to companies and individuals who do not have a PESEL number. So what data should we include on a named invoice?
- document number,
- date of the invoice,
- data of the entity issuing the invoice (name, address, Tax ID)
- data of the invoice recipient (name, surname, address)
- the date of the sale – if it is different from the date of the invoice,
- The name of the goods or service performed and the number and measure,
- Net price and net value,
- VAT rate and the amount of tax,
- gross price,
- the total amount to be paid.
If individual goods are subject to a different tax rate, this information must also appear on the invoice.
When should a named invoice be issued?
First of all, a named invoice can be issued:
- no later than 15. day of the month following the month in which the sale took place – provided that the customer made a request for issuance of the document by the end of that month in which the sale took place,
- no later than 15. day from the date of the request – if the request was made in a month subsequent to the one in which the sale occurred.
Important!
The customer has as much as three months to request a named invoice, counting from the last day of the month in which the sale took place.
Provisions on the timing of registered invoices can be found in Art. 106i para. 6 of the VAT Law.
How to invoice private individuals?
Issuing a named invoice is not difficult. You can do this in the accounting program you use. Simply select the option “issue an invoice to an individual” (or similar). If you are issuing invoices manually and using a pre-prepared template, put only the first name, last name and address in the field for customer information, and simply omit the “Tax ID number” field.
Important!
Although the identifier of individuals for tax purposes is the PESEL number, it is not required to be listed on a named invoice.
Named invoice – how to document revenue?
Of course, sales documented by a named invoice should also be properly recorded. Any such invoice must be forwarded to accounting for settlement. Named invoices can be recorded in two ways:
- On the basis of daily sales records – in the case of stationary sales,
- On the basis of a bank statement – in the case of sales via the Internet.
The records should be properly numbered. It must include information on the date of income, gross value, as well as a summary of income for the day. Serial numbering is also necessary.
Summary
A named invoice is a document that is most often issued by entrepreneurs who are exempt from the obligation to have a cash register. Nevertheless, in some cases, it may be that the customer asks for a named invoice – he has the right to do so, and the entrepreneur should comply with his request, as long as the customer fits within three months, counting from the last day of the month in which the sale was made. It is worth knowing that the possibility of issuing a named invoice exists and it is not at all a complicated process.
