Until now we have been talking about the different types of invoices that you can and should use in your business. But we must not forget the star of billing: the ordinary invoice.
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What is an ordinary or complete invoice?
The ordinary invoice – also called the full invoice – is the document that records any kind of economic operation that takes place in the company. In other words, any commercial transaction must be registered, for the consequent tax declaration.
Is it compulsory to issue an invoice?
Yes, by law, every business or professional is obliged to issue invoices, both for the products they have sold and the services they have provided. Although, as in everything, there are exceptions:
- If the operation does not have VAT associated with it.
- If it is a service that is included in the VAT Law.
- If you are under the special regime of equivalence surcharge.
- If your activity is included within the framework of activities under the special regime for agriculture, livestock and fishing.
- If it is an operation authorized by the AEAT
- If you are receiving an advance payment, you must also issue an invoice.
Always, if you have any doubts, you should consult a professional manager for guidance.
How to make an ordinary invoice?
The format of an ordinary invoice is the basic and common one for all types of invoices. You must include a series of essential data for the invoice to be valid and, of course, to be able to deduct VAT:
- Invoice issue date. If it is different from the date of the service or sale, you must indicate the date on which these were made.
- Invoice number that identifies it with respect to the series to which it belongs.
- The cost of the product and/or the concept of the service provided.
- Breakdown of taxes: the VAT applied and the personal income tax withheld if necessary, for example. As well as the unit price of the service or product without VAT.
- Tax data of the sender and receiver: name, address and VAT number.
- If any type of discount or rebate has been applied, this must also be reflected.
If you are self-employed, the invoice must be issued at the time of sale or service provision. If it is a management between companies, you have up to one month from the completion of the sale or service.
Special regimes to be indicated on invoices
Be careful if you belong to certain sectors, such as art, antiques and collector’s items. In this case, as it is a transaction subject to a special regime, it must be indicated on the complete invoice, stating “Régimen especial de antigüedades y objetos de colección”, for example.
In the case of travel agencies, when it is a question of the sale of used goods, a reverse charge transaction or a case of invoicing by the recipient, this must also be indicated.
Obligations to issue ordinary invoices
As we have said before, with certain exceptions, you are always obliged to issue an invoice. But there are other obligations to consider:
- You must keep any invoice you issue.
- In the case of invoices received from other professionals, you must also keep them.
- Keep record books of both issued and received invoices.
Remember also that the ordinary invoice or complete invoice can be issued on paper, but if you have an ecommerce or online business, then it will be an electronic invoice.
In fact, issuing electronic invoices is an obligation for the Public Administration and large companies from 2015. And everything that has been mentioned previously for the ordinary invoice, applies equally to the electronic one.
The ordinary or complete invoice is, as we say, the “normal” invoice and must be presented for any economic transaction you make. Therefore, it is very important that we are very clear about the possible exceptions that are contemplated in relation to the issuing of this invoice. As well as all the obligations.
From our ERP software, you can rest assured, because the world of invoicing will be much easier. Remember that we give you a free 1-hour demonstration of how it works. Do not hesitate to contact us, we will be happy to help you.