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What are the issues encountered with advance invoices? (2 CASES)
What are the issues encountered with advance invoices? (2 CASES)
We would like to bring to the attention of our colleagues two cases related to the implementation of advance electronic invoices during the trial period.
Example: A taxpayer will provide various construction materials worth 10,000 manat to the counterparty based on a sales contract. According to the contract, the counterparty must make an advance payment of 30% of the contract amount. The taxpayer providing the goods must include the product codes for the advance payments in the electronic invoice. However, it might be impossible to clarify the list of goods amounting to 3,000 manat in advance. Including product classification codes in the electronic invoice for advance payments creates certain issues for taxpayers.
Another case involves different approaches regarding the total amount noted in the document when presenting an advance electronic invoice.
Example: The taxpayer issued an electronic invoice for an advance payment of 200 manat for goods worth 500 manat to be provided to the counterparty. When the goods are delivered, the taxpayer issues an electronic invoice for 500 manat for the goods, work, and services provided, and also records the 200 manat advance payment. Unfortunately, some colleagues believe that since the electronic invoice for the 500 manat worth of goods, work, and services has been issued, the electronic invoice for the 200 manat advance payment should be canceled. They cite that the total amount for the two electronic invoices is 700 manat, while the counterparty received goods worth 500 manat. We would like to clarify that the 200 manat advance payment electronic invoice is only issued for advance payment purposes, so the electronic invoice for the 500 manat worth of goods, work, and services is the main document for accounting purposes. Therefore, there is no need to cancel the previously issued advance payment electronic invoice.
We would like to bring to the attention of our colleagues two cases related to the implementation of advance electronic invoices during the trial period.
Example: A taxpayer will provide various construction materials worth 10,000 manat to the counterparty based on a sales contract. According to the contract, the counterparty must make an advance payment of 30% of the contract amount. The taxpayer providing the goods must include the product codes for the advance payments in the electronic invoice. However, it might be impossible to clarify the list of goods amounting to 3,000 manat in advance. Including product classification codes in the electronic invoice for advance payments creates certain issues for taxpayers.
Another case involves different approaches regarding the total amount noted in the document when presenting an advance electronic invoice.
Example: The taxpayer issued an electronic invoice for an advance payment of 200 manat for goods worth 500 manat to be provided to the counterparty. When the goods are delivered, the taxpayer issues an electronic invoice for 500 manat for the goods, work, and services provided, and also records the 200 manat advance payment. Unfortunately, some colleagues believe that since the electronic invoice for the 500 manat worth of goods, work, and services has been issued, the electronic invoice for the 200 manat advance payment should be canceled. They cite that the total amount for the two electronic invoices is 700 manat, while the counterparty received goods worth 500 manat. We would like to clarify that the 200 manat advance payment electronic invoice is only issued for advance payment purposes, so the electronic invoice for the 500 manat worth of goods, work, and services is the main document for accounting purposes. Therefore, there is no need to cancel the previously issued advance payment electronic invoice.