Did you know that only a VAT payer is obliged to issue an invoice? However, each entrepreneur must keep the prescribed accounts.
The VAT invoice is obligatory for VAT payers and it is not obligatory for VAT payers, but it also serves them as an accounting document which is already obligatory. See how to properly invoice.
How to properly issue an invoice
Whether we do business or just start a business, sole trader or business, we all issue invoices and earn money for our services. Usually, this is not done for us by an accountant, but almost always it is under the thumb of the entrepreneur himself.
We can also issue an invoice correctly using a simple text or spreadsheet program (Excel, Word, etc.). However, we do not necessarily have to worry about creating spreadsheets and constantly updating them, with simple and intelligent billing programs already in place.
However, when using the billing program, we should also know which fields to fill in and what data to include in them.
In addition, we often ask when to issue an invoice or, in some cases, not at all. For example, when delivering goods or services to a private individual.
Invoice Requirements: What each invoice must contain
As mentioned at the beginning of this article, only the VAT payer is obliged to issue an invoice. Only the law on value-added tax explicitly uses the word invoice. Other tax and accounting laws talk about the so-called. accounting document.
Thus, VAT payers do not have to issue invoices but only accounting documents. Both the invoice and the accounting document must contain the prescribed mandatory particulars. Entrepreneurs do not like to complicate their lives, so they all use invoices. The invoice then serves both as a tax document for VAT payers and as an accounting document for VAT non-payers.
The invoice shall include:
Identification of participants: Business name, registered office and company ID of both supplier and customer. The person issuing the invoice (supplier) must also indicate the identification of the register in which it is registered (business register, trade register, etc.), the number of the entry in this register.
The verbal and numerical designation of the document. For example, “Invoice # 201801”.
Amount to be paid. It is recommended to break down (unit of measure, number of units of measure, the price per unit of measure, total).
Date of issue of the document (date of issue of the invoice).
The date of receipt of the accounting document (usually the date of delivery of the goods or service on the invoice). Learn more about the meaning of dates on your invoice, for example here.
In addition, the VAT invoice must contain:
VAT ID of both participants (supplier and customer).
Scope and type of service delivered or quantity and type of goods delivered.
VAT base for both VAT rates and unit price without VAT.
Total amount of VAT.
In some cases, the VAT Act allows you to issue a simplified invoice, which may not include some of the aforementioned particulars. an electronic cash register document.
Each invoice must reflect the actual delivery of goods or services. It must be linked to a specific taxable trade, whether it be a supply of goods or service.
What the invoice may not contain
In both cases, the invoice does not need to contain a signature, but its credibility, content integrity and readability must be sufficiently secured, for example by placing the invoice on a secure website, where the invoice maker sends the invoice notice to the customer and to the invoice.
Neither the due date, the variable symbol and even the tax identification number (corporate tax or personal identification number) are among the mandatory requirements of the invoice or accounting document. However, both documents may contain them. The due date of the invoice is agreed by the contracting parties, but it is especially important for commercial relations, so please always state it on the invoice.
Invoices may also contain a constant symbol or delivery terms . We recommend that you include your email address, phone number, or other contact information in the vendor and customer section. The invoice may also include the order number to which it is bound.
These are the VAT invoice versus the VAT payer
The VAT payer always bills the amount without VAT. It does not matter whether the customer is a VAT payer or not.
No VAT ID is provided. All customer data can be included, including, but not limited to, his VAT ID.
It is recommended to include the note “We are not VAT payers”.
When to issue an invoice
VAT payers – Watch 15 days! :
– within 15 days of delivery of goods and services
– within 15 days of receipt of the advance
– within 15 days of the end of the month in which the company delivered goods exempt from VAT
– within 15 days of the end of the month in which the service was provided, with the customer taxing the service
– within 15 days of the end of the month in which it delivered more deliveries
The Accounting Act states: “without undue delay” . I mean, as soon as possible.