Royalty statements & acts

Royalty statements are a separate document type — distinct from invoices both legally and in content. fakts lets you create a royalty statement and generate an acceptance act from it.

Creating a royalty statement

Open the Royalties section and create a new statement. Choose a client from the client book or add one directly. Then add lines — each with a work title, quantity, unit price, and the applicable tax treatment.

fakts calculates the total royalty amount, personal income tax (PIT) withholding, and the net payable amount. Review the figures before sending.

Generating an acceptance act

From a completed statement you can immediately generate a pieņemšanas-nodošanas akts (acceptance and handover act) — a document confirming that the work has been delivered and received between the parties. The act is prepared automatically from the statement lines.

Both documents — the statement and the act — are saved and available for download at any time.

Royalty vs invoice differences

A royalty statement is not an invoice. The key differences:

• PIT withholding — royalties are typically subject to personal income tax withholding at the applicable rate, depending on the regime and any reliefs, which the payer remits to the state treasury.
• No VAT — VAT is generally not applied on a royalty statement.
• Acceptance act — generated as a companion document; invoices do not require this.

If you are unsure whether a particular arrangement calls for an invoice or a royalty statement, consult your accountant.