1. How invoices should comply with tax regulations in your company
The issuance of invoices is an activity carried out by all companies to document the commercial operations they carry out, whether it is the sale of products or the provision of services.
However
Did you know that there are specific requirements that must be met to be valid before the Treasury?
In this blog, we will explain everything you need to know about the tax requirements and how to comply with them.
2. What requirements does the Treasury demand on invoices?
These formalities refer to a series of rules established by tax legislation so that the invoices are valid and can be used as proof of expense and deduction in the tax return.
In other words, if your company issues invoices that do not meet these parameters, you could face financial or tax sanctions, as well as tax deduction problems.
These requests may vary by country and tax law. In this case, we will focus on the invoice requirements in Spain.
The main requirements are:
1. Issuer data: The invoice must include the name or company name, the complete address and the tax identification number (NIF) of the issuer.
2. Receiver data: The name or business name, full address and NIF of the recipient must also be included.
3. Issuance date : The invoice must have an issue date that corresponds to the day on which the commercial operation was carried out.
4. Invoice number: The invoice must have a unique and consecutive number that allows it to be uniquely identified.
5. Detailed description of the operation: The invoice must include a detailed description of the commercial operation that has been carried out, including the price and quantity of the goods or services delivered.
6. Tax rate: The tax rate corresponding to each commercial operation must be indicated, which may be the IVA or the tax on economic activities (IAE). These data are crucial for the correct application of the corresponding taxes and to avoid errors in the tax declaration.
7. Tax base: The tax base is the price of the commercial operation without including taxes. It must be clearly indicated on the invoice.
8. Tax rate: The tax quota is the amount that corresponds to the taxes that are applied on the tax base. It must also be indicated on the invoice.
9. Total bill: It is the total amount of the invoice, which includes the tax base plus the tax quota.
10. Payment method: The payment method used to carry out the commercial operation must be specified, either by bank transfer, cash, credit card, etc.
3. Tips to meet these obligations
1. To minimize human error, we recommend that you use approved billing software that complies with established legal requirements. These programs allow you to generate invoices automatically, facilitating the task and reducing the possibility of errors.
2. Although the invoices are made digitally, we advise you to keep all the invoices issued and received for at least four years, since they are documents that may be required by the Treasury in case of tax inspections.
In short, using approved billing software and carefully verifying all invoice data are key aspects that we must incorporate into our company's day-to-day.
In addition, we must carry out an exhaustive billing file, to avoid scares if any tax inspection is carried out in the future.
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