The EU has a standard set of invoicing rules, though in some cases, there are additional, country-specific requirements. There are two kinds of invoices, with two sets of requirements. Full invoices are used for B2B transactions, except in some circumstances, such as when the invoice value is below €200. Simplified invoices are used for B2C transactions.
Full invoices need to include:
- Date of Issue
- Unique sequential number that identifies the invoice
- Supplier’s full name and address
- Customer’s full name and address
- Customer’s VAT identification number (if the customer is liable for tax on the transaction)
- Description and quantity of goods or services supplied
- Unit price of goods or services, exclusive of tax, discounts or rebates (unless they’re included in the unit price)
- Date of transaction or payment (if different from the invoice date)
- The VAT rate applied and the amount of VAT payable
- A breakdown of the amount of VAT payable by the VAT rate or exemption
Simplified invoices only need to include:
- The date of issue
- The supplier’s VAT identification number
- The type of goods or services supplied
- The amount of VAT payable (or the information needed to calculate it)
In some cases, full invoices need to include additional information:
- Exempt transactions
Include a reference to the appropriate legislation exempting it, or any other reference indicating that it is exempt. - If your customer is liable for tax
In instances where you don’t charge your customer VAT, but they are liable for it, include the words: Reverse Charge - If a margin scheme applies
Include a reference to the scheme involved. For example, “Margin scheme – travel agents”. - If your customer issues the invoice instead of you
This is called self-billing. The invoice should include the words “self-billing”. - When the person liable for tax is a representative
Include the representative’s VAT identification number, full name and address. - You’re using a cash accounting system
Include the words “cash accounting”