What the problem is and why an electronic invoice cannot simply be edited
This situation is familiar to many accountants: an invoice was issued and sent, but it was later discovered that the buyer had been specified incorrectly. The branch and the head office may have been confused, a similar name may have been selected from the directory, or the wrong BIN may have been entered. The first impulse is to open the document and change the recipient. However, this cannot be done with an electronic invoice.
An electronic invoice registered in the Electronic Invoice Information System (IS ESF) is already an accounting document with a registration number. Under the Rules for issuing invoices in electronic form, the registration number (line 1 of section A) is completed automatically upon registration, and an IS ESF participant cannot complete or edit it. The issue date (line 2) is the date on which the electronic invoice is registered and sent to the recipient, and it is also entered automatically. Therefore, a sent document cannot be corrected “internally.” The error can only be corrected using a new document linked to the original.
Under the electronic invoice form (Appendix 2 to the Rules), the recipient’s details constitute a separate section of the document, along with the supplier’s details, the contract, information on goods, work and services, and other sections. Therefore, an incorrect recipient is an error in a mandatory detail, not a typo in a note.
Who this concerns
The issue primarily concerns the supplier: it is the supplier who issues the electronic invoice and is responsible for the accuracy of the details. However, it also affects the recipient:
- the organisation incorrectly specified as the recipient sees someone else’s electronic invoice in its account. If nothing is done about it, questions may arise regarding creditable VAT and discrepancies during reconciliation;
- the actual buyer has not received the document. Without a correct electronic invoice, it may have no grounds for claiming VAT as a credit;
- the supplier risks having its sales turnover in IS ESF differ from its tax accounting and tax return data.
How to correct an error in the recipient: general procedure
IS ESF has two principal mechanisms for correcting an invoice that has already been issued: a corrected electronic invoice (which cancels the original) and withdrawal of the electronic invoice. Withdrawal is expressly mentioned in the Rules: for example, line 2.1 “Date of issue on paper” is completed, among other cases, when an invoice previously issued on paper is withdrawn in IS ESF.
When there is an error in the recipient, the usual procedure is as follows:
- Make sure that the error concerns the recipient. Check the BIN/IIN, name and, if the buyer is a structural subdivision, its details against the contract and source documents.
- Select the correction method. A corrected electronic invoice is used for changes, additions and correction of errors that do not result in replacement of the supplier or recipient. When it is issued, the previously issued invoice is cancelled. Therefore, an incorrectly specified buyer cannot be replaced by means of a corrected electronic invoice (Article 499 of the Tax Code of the Republic of Kazakhstan). If the recipient itself has been identified incorrectly, the erroneous electronic invoice must be withdrawn and a new one issued to the correct buyer in accordance with the procedure established by the Rules for issuing electronic invoices.
- Issue a correct electronic invoice to the correct recipient. Specify the turnover date based on the actual date of sale. When completing the new document, transfer the information from the source documents relating to the actual supply and recheck the buyer’s details. If an error is being corrected without replacing the supplier or recipient and a corrected electronic invoice is issued, it must contain a correction note, the number and date of the corrected document, and the number and date of the invoice being cancelled (Article 499 of the Tax Code of the Republic of Kazakhstan).
- Notify both counterparties. Notify the incorrect recipient that the document will be withdrawn. Notify the actual buyer that a new electronic invoice has been issued to it.
Important note on the rules. The current Tax Code expressly distinguishes between correcting details and replacing a party to the transaction: a corrected invoice is permitted only for errors that do not result in replacement of the supplier or recipient of goods, work or services (Article 499 of the Tax Code of the Republic of Kazakhstan). Consequently, if the wrong buyer was selected, issuing a corrected electronic invoice alone is not sufficient: the erroneous document must be withdrawn and a new electronic invoice issued to the correct recipient.
How to change the counterparty in a 1C document
In 1C:Accounting for Kazakhstan, issued invoices are located under “ESF/EAWP” → “Issued invoices” (the “Issued invoice” document).
If the document has not yet been sent to IS ESF, the counterparty can be changed directly in the form. In this case, 1C will display the following message:
> “The counterparty has changed; the ‘Supporting documents’ tabular section has been cleared”
This is not an error but standard behaviour. When the counterparty changes, the program clears the list of supporting documents if it had been completed. Sales documents issued for the previous counterparty do not relate to the new one. After changing the counterparty:
- reselect the supporting documents (sales documents) issued for the correct counterparty;
- check the contract: the electronic invoice details depend on it. For example, the payment method is populated from the payment terms specified in the details of the counterparty’s contract;
- check the tabular section containing goods, work and services, as well as the VAT amounts.
If the electronic invoice has already been registered in IS ESF, changing the counterparty in 1C will not correct anything. The error must be corrected through the IS ESF mechanisms as described above. A document must then be prepared in 1C for the correct counterparty, and the sale itself must be recorded for the correct buyer. If the sale was originally posted to the wrong counterparty, correct it as well; otherwise, the new electronic invoice will import the incorrect data again.
Deadlines and points to note
The deadline for issuing an electronic invoice and the correction deadlines are established by the Tax Code and the Rules for issuing electronic invoices. When correcting an incorrect recipient, it is important to follow the procedure for withdrawing the erroneous document and issuing a new electronic invoice. Practical recommendations:
- correct an error in the recipient as soon as it is discovered, rather than waiting until the VAT return is due;
- do not issue a new electronic invoice to the correct buyer until the erroneous one has been dealt with. Otherwise, the turnover for a single sale will be duplicated in IS ESF;
- retain correspondence with the counterparties and documents confirming to whom the supply was actually made (the contract, delivery notes and certificates). They will be useful if the tax authority sends a notice concerning discrepancies;
- after making the correction, check the document statuses in IS ESF: the status of the original electronic invoice should have changed, while the new one should be marked as delivered to the recipient.
Frequently asked questions
Can an electronic invoice that has already been sent be edited in IS ESF? — No. A registered electronic invoice receives a registration number that cannot be changed. The correction method depends on the error: a corrected electronic invoice is not used if the supplier or recipient must be replaced (Article 499 of the Tax Code of the Republic of Kazakhstan).
Why did 1C clear the supporting documents when I changed the counterparty? — This is standard behaviour of the “Issued invoice” form: when the counterparty is changed, the “Supporting documents” tabular section is cleared. Select the supporting documents again, this time for the correct counterparty.
What turnover date should be entered in the new electronic invoice? — Specify the turnover date based on the actual sale and the source documents. Do not replace it with the date on which the error was discovered or the date on which the counterparty was changed in the accounting system.
What should an organisation do if it receives someone else’s electronic invoice? — Notify the supplier of the error and do not claim the VAT under this document as a credit until the erroneous electronic invoice has been withdrawn.
Which article of the Tax Code should be cited in the explanation? — Article 499 of the Tax Code of the Republic of Kazakhstan: it establishes that a corrected invoice is issued for errors that do not result in replacement of the supplier or recipient. If a different buyer is specified in the original electronic invoice, this provides grounds for withdrawing the erroneous document and issuing a new electronic invoice to the correct recipient.