The bills are a type of receipt used to prove that it has conducted a transaction, which may be the purchase, sale or purchase of a product or service. Invoices are part of the world of finance and are an indispensable resource in any business and are important for both the issuer and the recipient.

Having an invoice can prove that a certain product was purchased on the date, at the time and for the price stated. In addition, they are vital to record the entry of money that facilitates the work of the accountant.

What is an invoice and what is it for?

It is a document of proof to demonstrate an economic fact. There are many definitions that it can have, depending on the economist or expert who defines it, but the most important point is that the invoice is a commercial document, in which a transaction is registered, that is, information about a purchase, sale or the provision of a specific service.

What is an invoice for?

The invoice is much more than just a document to prove a transaction, that is, to record a sale or purchase.

  • It is used to physically prove the realization of an economic operation between two people.
  • It is a way of proving that the operation was registered under each of the legal parameters and the corresponding taxes were paid.
  • In case of having to return the product due to a defect, it will allow you to request a return.

Invoice types

Depending on the purpose of the invoice, there may be different types, the best known is the ordinary invoice, which we receive daily when buying a product or requesting a service.

Simple bill or ticket

These came into force with fiscal validity since 2010 and have gone on to replace the old ticket used in all kinds of stores, drugstores, butchers and all kinds of shops. Among the points that differentiate it from common invoices are:

  • It does not have the traditional recipient data such as NIF, address and amount.
  • It is worth noting that in this type of invoice the VAT is not itemized and only the percentage of said tax is affected.

Proforma invoice

It is a type of invoice that for tax purposes has no value, for this reason you must bear in mind that with it you cannot make any refund or demand any type of guarantee. It could be said that it is a draft invoice, it differs from the common ones by its order of numbering or in the last case not being numbered.

Corrective invoice

This is an invoice issued to correct an error, however, an amending invoice must present some requirements to be fully valid. One of these essential details is to clarify that said invoice is corrective to a previously made one, in the same way it must specifically express which invoice it is rectifying, in the same way you must bear in mind that this type of invoice contains a different numbering.

Summary invoice

These invoices are a way to make transactions that are daily or constant easier and thus not have to make an invoice every day. Here are grouped several invoices issued in the same month, for this you must show the value of the entire sale during the month and the description of each one separately.

Electronic invoice

With the advancement of technology, invoices have also changed and this is proof of it, in which it is worth noting that it has the same legal and fiscal effects. Similarly, a digital invoice is not necessarily an electronic invoice, for an invoice to be truly electronic it must have an electronic signature.

Parts of an invoice

Invoices or purchase invoices, as they are fully known, is a commercial document in which a transaction is recorded, although not just a purchase since it can also be a sales invoice.

  • There are several data that an invoice must contain in order for it to be accepted according to legal standards and one of the most important is the name, address and NFI, of who is providing the service or providing a certain product.
  • So followed must correctly identify the number corresponding to the invoice, can not jump from one to another it is to be correlative numbering.
  • Each of the parts that make up the invoice must have this strict order, following the invoice number, the date must correspond with the numbering, that is, a more recent date cannot have an older numbering.
  • Another vital part is the information about the person who is buying or receiving the product or service.
  • It must also have a concept, that is, a short description of the product or service.
  • The amount is also part of the invoice, in which the amount is defined, that is, the remuneration or price, that is, what the service or product costs without including taxes.
  • There is a type of tax called IRPF, which is the acronym for Personal Income Tax, which is a fundamental part of the billing and is the money discounted on each invoice that have to do with taxes to the state in relation to the revenue volume.
  • Another tax that you may be a little more familiar with is VAT, which you must also put aside, that is, not include directly in the price, but must add it, it is the tax that is delivered to the Treasury and is 18% of the value of said product or service.
  • In case of direct debit payment to a bank account, the information of the account number to which the agreed amount will be deposited is necessary.

This is how you must fill out an invoice and they are also the elements that make it up, as you can see most of them are simple data, which can be a bit complicated and however you can solve knowing the percentages, it is what corresponds to taxes like VAT.

An invoice must clearly meet each of these requirements without studs or patch, as it could be invalidated if it has any patch, patch or if the numbering and dates do not coincide.

Difference between purchase invoice and sales invoice

They are both commercial documents with similar information, which basically makes them different, is who issues them, being a sales invoice that issued by the buyer in cases where the seller is a private individual or does not have sales invoices.

The main difference between the two is the information, since in the invoice the information on taxes such as VAT is more detailed and the purchase receipt only shows the total, canceled so if you are a businessman it is better that you obtain at the moment of your purchase a purchase invoice for tax purposes.

Questions and doubts about invoices

The commercial world, finance and the economy are areas of human life that must be dealt with on a daily basis and knowing certain important information about the documents that work or are part of a commercial exchange, purchase or sale is necessary in case of claim any right, assert a guarantee or make a return.

At what point is an invoice issued?

At the time of a commercial exchange, whether for a product or service, it is the moment when an invoice must be given. In which, as we mentioned, details of the transaction must be included, such as the date, the quantity of the product, the price among other fiscal details.

How many copies of the invoice does the seller keep?

For legal purposes, the seller or service provider should keep only one copy of the invoice, however, if it is necessary for something else, they could keep more copies of the invoice. Keeping only one copy is what is required by law, but it does not mean that it cannot be kept any longer.

What penalties can a faulty invoice or wrong information bring?

The sanctions can vary according to the country, but billing problems generally lead to sanctions for closing the business establishment. It is necessary that at the time of making any purchase or receiving a service you require an invoice and that it correctly contains the information you need.

What is the main function of the invoice?

The invoice proves that a product belongs to and was purchased on the date indicated by the price it reflects, the invoices are essential at the time of any return and together with the guarantee they are essential to demand a return.

With regard to tax payments and duties with the state, the invoice is proof that the establishment is correctly complying with the rules and that it is not charging any type of overpricing.

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Dr. Samantha Robson ( CRN: 0510146-5) is a nutritionist and website content reviewer related to her area of ​​expertise. With a postgraduate degree in Nutrition from The University of Arizona, she is a specialist in Sports Nutrition from Oxford University and is also a member of the International Society of Sports Nutrition.

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