What should be considered when canceling an invoice?

Is it even possible to cancel an invoice?

The provisions of the Polish VAT Act do not provide for the possibility of canceling an invoice. Instead, a correction invoice must be created if necessary. In practice, however, it is possible to cancel an unnecessarily issued invoice, which is accepted by the tax authorities. However, this is an exceptional situation that is only permitted under certain conditions.

Conditions for canceling an invoice

Annulment of an invoice should only relate to a situation where:

• the invoice was not introduced into legal transactions and
• the invoiced transaction never took place (ie no tax liability arose).

The above requirements must be met cumulatively . This was confirmed by the Provincial Administrative Court in Gliwice on January 27, 2021 with the judgment I SA/Gl 1175/20.

If one of the above conditions is not met, the taxpayer should correct the original invoice by means of a correction invoice. It is also a good idea to provide voided invoices with appropriate notice of the reason and circumstances of the void and to keep them on your own tax records.

Source Taxbenefit

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