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What is a simplified invoice?

25.09.2023
What is a simplified invoice?

In the age of digitization and automated accounting systems, many an entrepreneur wonders whether traditional, elaborate VAT invoices are overkill. Do they always have to be so complicated? Can they somehow be simplified while still meeting all legal and tax requirements? Find the answers to these questions in this in-depth guide, which dispels all doubts about simplified invoices. Here you will learn in what situations they can be issued, what elements they must contain and how to book them correctly. This is a compendium of knowledge for anyone who wants to efficiently manage their business without unnecessary complications. I invite you to read

What is a simplified invoice?

The answer to the question of what a simplified invoice is seems simple, but not every entrepreneur is sure in what situations it can be used and what elements it should contain. Therefore, we will try to explain in this article exactly what is meant by a simplified invoice, what are its applications, and the differences from a traditional VAT invoice

A simplified invoice is a document certifying a sale, which does not have to contain all the information required for a traditional VAT invoice. It was introduced in 2020 by in order to tighten the VAT system in Poland, streamlining the process of inspections carried out by tax authorities. The reporting changes are also a major convenience for businesses

Simplified invoice vs. VAT invoice – what are the differences?

At first glance, a simplified invoice and a VAT invoice seem similar, but the differences between them are significant. A VAT invoice is a more formal document that must contain more details and information, such as the company’s full name, address, tax identification number (TIN), or detailed descriptions of goods and services. A simplified invoice is, as the name implies, a simplified version of this document and does not need to contain as much information. Ultimately, they are documents that fulfill exactly the same role – to document sales

Simplified invoice – the elements it must contain

When we talk about a simplified invoice, the elements that must be included in it are less numerous than in the case of a normal VAT invoice. However, we still need to provide basic data to which we include

  • the date when the invoice was issued,
  • the date on which the goods were delivered or the service was performed (if different from the date of the invoice),
  • a unique number that uniquely identifies the invoice in question,
  • the tax identification number (TIN) of the buyer,
  • tax identification number (TIN) of the seller,
  • the name of the goods or services,
  • the total amount to be paid,
  • the amount of reductions, discounts, rebates.

This means that, unlike a traditional VAT invoice, this document does not have to include information about the quantity of goods supplied, their net unit price, the value of the goods supplied or the amount of tax on the total net sales value

Simplified invoice – up to what amount can be issued?

In the case of this form of VAT settlement, we also have to deal with certain limitations. A simplified invoice can be issued up to a certain amount – currently it is 450 zlotys or 100 euros (according to Article 106e paragraph 5 point 3 of the VAT Act) These values may change, so before issuing such a document it is worth making sure that the current limits have not changed

In terms of timing, a simplified invoice is no different from a standard VAT invoice – it must be issued no later than the 15th of the month following the delivery of goods or the performance of a service, and at the earliest 30 days before the delivery or performance of a service

Simplified invoice – where the number on the receipt?

This is an important question, because the simplified invoice number on the receipt must be visible and easily identifiable. It can be found below the total gross sales value – before the cash register number and cashier’s designation. Since it is always in the same place, it is easy to identify, which makes posting much easier

Receipt vs. simplified invoice

Entrepreneurs often ask about the difference between a receipt and a simplified invoice. A receipt a simplified invoice are two different documents, although both are used to confirm the completion of a transaction. The receipt does not have the character of an invoice and it is not possible to convert it into a VAT invoice. However, it can serve as the basis for a simplified invoice

Duplicate of a simplified invoice

If the original simplified invoice is lost, a duplicate can be issued. The new simplified invoice must contain all the information that was on the original document, with the addition of the word “DUPLICATE.”

Pursuant to Article 106l(1)(1) of the VAT Law, when an invoice is destroyed or lost, a new invoice must be issued using exactly the same data used on the original invoice – such document must contain the word “duplicate” and the date it was issued

If there is an error on the originally issued simplified invoice, it can be corrected by issuing a correction. The correction of the simplified invoice should contain precise information about what has been changed and be marked accordingly

Simplified VAT invoice – making it easier for entrepreneurs

When talking about a simplified invoice, the most important thing to remember is the limits up to which it can be issued. It currently amounts to 450 EUR. – If the amount of the transaction exceeds this limit, it will be necessary to issue a full VAT invoice

Understanding what a simplified invoice is and its uses is key to running a smooth business. It saves time and simplifies accounting, especially for small and medium-sized businesses that do not have extensive accounting departments. We hope this guide will help you better understand in which situations a simplified invoice can be used, what elements it should contain and what are the differences between it and a traditional VAT invoice. If you’re looking for help with your day-to-day bookkeeping, check out our TAXON invoice application – you can easily issue any document very quickly and efficiently with it.

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