What to do with the data on which minute a non-cash invoice was issued!?

Numerous business entities are quite surprised to learn that the Law on Fiscalization in Cash Transactions (Nar. nov., no. 133/12.) in force since January 1, 2013, imposes additional obligations on entrepreneurs who do not collect outgoing invoices in cash.

Although all outgoing invoices are collected by receiving money transfers to a transaction account in a business bank, the issuance of invoices must still be aligned with the Law on Fiscalization in Cash Transactions. According to interpretations from the Ministry of Finance, fiscalization obligors who do not collect cash do not carry out the fiscalization process for invoices, but three obligations from the Law apply to them: they must adopt a general act of prescribed content, expand the content of outgoing non-cash invoices, and visibly display a sticker at the place where invoices are issued indicating that the customer is obliged to take the invoice.

Space and numbering In the general act, it should be determined what is considered a separate business space for the purposes of fiscalization regulations as part of the business entity’s whole. This can be a closed or open business space, part or more parts of one business space where different activities are carried out, even a space that is used only occasionally or temporarily. Depending on the nature of the activity, organization of business, and other objective and subjective reasons and needs, the entrepreneur independently decides which business unit represents a separate business space and determines in the general act how to label that space (with letters, numbers, or a combination of letters and numbers). 

Also, the general act should determine the method of numbering outgoing invoices starting from 1 to n, where the entrepreneur chooses between the option that invoice numbers follow a numerical sequence in each business space or according to each payment device. Of course, given that non-cash invoices are usually printed on a computer, for these purposes, the computer is identified with the payment device. The entrepreneur does not provide anyone with the general act and does not inform the Tax Administration about business spaces or operators who issue invoices.

The same deadlines Outgoing non-cash invoices must also have new additional data, but less than cash invoices. They must indicate the hour and minute of issuance, the designation of the person working on the payment device (computer) who issued (printed) the invoice, and the designation of the payment method. The serial numbers of outgoing invoices must follow the numbering rule specified in the general act, and the invoice number must also contain the designation of the business space and the designation of the payment device. Non-cash invoices are not fiscalized, the Tax Administration does not assign an identifier to them, and they do not have a code designation of the invoice issuer.

The deadlines within which entrepreneurs who do not operate in cash at all are obliged to expand the content of non-cash invoices are identical to the deadlines for the phased introduction of fiscalization of cash invoices. From January 1, 2013, the obligation was introduced for medium and large entrepreneurs and for caterers, from April 1 it is introduced for traders, self-employed professions, and the activity of repairing motor vehicles, and from July 1 for all other obligors. For example, a wholesale business that exclusively sells to other business entities and collects everything via bank transfer must adjust the content of the invoice from April 1, 2013, and adopt a general act of prescribed content beforehand. Similarly, a journalist or auditor who performs independent activities and keeps business books must carry out all the described actions and adjust the content of their outgoing invoices, even though due to requirements from special regulations, all receipts are collected exclusively by receiving payments to a bank account.

Strange notification The unclear reasons why the Ministry of Finance imposes costs related to changing computer programs and adding data to non-cash invoices on entrepreneurs are puzzling. Each non-cash invoice is individually recorded in the Book of Outgoing Invoices in accordance with VAT regulations, and turnover and collection can be easily controlled through the transaction account in the business bank. In business transactions with other entrepreneurs, goods are often shipped from the warehouse based on a delivery note, and the invoice is issued subsequently, raising the question of the justification for displaying additional data on an invoice that was subsequently compiled in the entrepreneur’s accounting or perhaps in the accounting service.

A kind of ‘pearl’ is the requirement that a notification about the obligation to take the invoice must also be visibly displayed at the place where non-cash invoices are issued. Non-cash invoices are usually sent to the customer by mail or courier delivery. It is questionable who the notification should alert to take the invoice.
Measures that enhance oversight of cash transactions are more than welcome. However, it is difficult to recognize how much the tax oversight will benefit from the data on which hour and minute a non-cash invoice was issued and from which computer it was printed.