Issuing invoices - what to keep in mind?
An invoice is the most common document confirming the transaction. It may be in paper or electronic form. In order for it to be correct, it should consist of several necessary elements. In the following article we will tell you what to keep in mind when issuing an online invoice.
Online invoicing - what to keep in mind?
When deciding to issue invoices online through a specially developed program, please note that the FV should be issued in two copies, one for the buyer and the other for the person or company issuing the invoice. In general, a taxpayer may issue an invoice until the 15th day of the month following the sale or supply of a service, although there are a few exceptions, e.g. online invoices for construction or refurbished services should be issued until the 30th day following the date of supply of a given service.
Compulsory elements of the invoice
In order for invoices to be considered correct, the VAT invoice should contain mandatory elements such as the date of issue and completion or completion of the service or supply of products (if different from the date of issue of the FV), the invoice number, the name (or names) of the buyer and seller, their VAT numbers and addresses, unit net price of the service or goods, name and number of goods sold or range of services rendered, amount of discounts, tax rate, total net value of goods or services rendered, total net sales value plus tax on this value (with a breakdown into amounts relating to specific tax rates) and total amount due.
What is factoring?
Counterparties delaying payment of invoices or invoices with deferred payment dates can be a real nuisance for many entrepreneurs. In order to meet them, many companies offer the so-called factoring service. It consists in the purchase by the factor (i.e. the company) of invoices with a deferred payment date, which were issued by the invoice issuer (i.e. the supplier of services or goods) to its recipients. The factor pays the factor 80-100% (minus commission) of the invoice value immediately after it is issued, and the rest of the amount due is transferred to the factor after the factor receives the payment from the debtor (this amount is reduced by the margin for the factor). Factoring is therefore a recommended way for a company to quickly obtain the necessary cash.
Invoicing by electronic programs may seem difficult at first, but gaining the necessary knowledge about it and issuing several invoices will certainly make it easy to do so quickly.