A margin invoice, or VAT marża faktura, is a special type of invoice in which VAT is calculated not on the full sale price, but only on the difference between the purchase and selling prices of the goods (services), i.e., the buyer/seller margin.

The margin is the difference between the selling price and the purchase price of the goods (services) by the seller.

Margin = selling price – purchase costs of the goods (services) being sold

Typically, such invoices are issued by sellers who buy and then sell used goods that can be reused, such as cars, computers, telephones, etc. Such invoices are used in tourism services and antique sales.

How is VAT calculated when issuing a margin invoice? The tax is determined on the difference between the purchase and selling prices of the goods.

Example. A car dealership traded in a car from an individual for 50,000.00 zł. The car was then sold for 55,000.00 zł. The tax calculation is based on the 5,000.00 zł difference, resulting in a tax of 934.96 zł.

The difference between a standard invoice and a margin invoice is that a margin invoice can only indicate the commission amount or gross value. In this example, the amount indicated is 5,000.00 PLN, with no net value, tax rate, or tax amount.

A margin invoice must also include addendums depending on the type of sale. For used goods, the addendum "margin procedure – used goods" applies.

A margin invoice does not entitle the buyer to a VAT deduction, but the purchase costs are fully expensed for corporate income tax purposes.

Do you use this type of invoice for the purchase and sale of goods and services in Poland or the EU? For consultations or accounting services, please contact us using the contact information below.