Bonus and VAT invoice

The issue of documentation and invoicing of bonuses calculated on the value of purchases have raised controversies over past years. In 2012 the Supreme Administration Court has issued a ruling which states that such bonus (as well as bonus for timely payment of invoices) is actually a reduction of the original sales price. Consequently the bonus has to be documented with VAT correction invoice and appropriate correction of VAT declarations have to be made. However, this is not always applicable. If the bonus is granted to an entity who is not a direct purchaser of our products but to an entity down in the sales chain (e.g. a retailer), then the bonus has to be documented with a credit note. In such as case there is no reason to issue either an invoice (since there is no services) or correction invoices issued to direct purchasers (as the bonus is not applicable to them).

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