Publication date: 07.08.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
An invoice is an important commercial document used to document the sale of goods or services and to confirm the customer's obligation to pay for those goods or services. Here are the main aspects that apply to invoices:
Contents of the invoice:
- Details of the supplier: Company name, address, contact details, identification code (EUDRPOU for Ukraine), bank details.
- Details of the buyer: Company name (or name of an individual), address, identification code.
- Issue Date: The date the invoice was issued.
- Invoice number: Unique identification number of the invoice for accounting and tracking.
- Description of goods/services: List of goods or services provided, their quantity, units of measurement.
- Prices and amounts: Unit cost of the product or service, total cost, amount of VAT (if applicable), total amount due.
- Terms of payment: Payment term, payment methods, information on possible fines for delay.
Question
What is the functional purpose of information?
Answer
The invoice is proof of the agreement between the supplier and the buyer, which helps to avoid disputed situations. Invoices are used for accounting, financial management and accounts receivable control. An invoice is the main document for calculating and paying taxes, such as VAT (in Ukraine) or other taxes related to trade.
Question
Are there any invoicing requirements?
Answer
Invoices must comply with the legal requirements of the country in which the business is conducted. In Ukraine, this is provided for by the Tax Code and accounting standards. Invoices should be kept for the statutory period (usually 3-5 years) for tax and audit purposes.
Question
Can the invoice be issued in electronic form?
Answer
Modern technologies make it possible to use electronic invoices that automate the accounting and payment monitoring processes. They must meet the standards of electronic document flow and tax requirements. An electronic document has the same legal value as a document in paper form.
Useful tips when using invoices:
- Data verification: Always verify the accuracy of the information on the invoice to avoid errors and misunderstandings.
Timely invoicing: Issue invoices in a timely manner after providing goods or services to avoid payment delays.
Legal advice: If you have any doubts about the correctness of the invoice or legal requirements, consult a lawyer or accountant.
Types of invoices used in foreign economic activity:
Proforma invoice and commercial invoice are two different types of invoices used in commercial transactions, and each of them has its own specifics and purpose. Here are more details about these documents:
- Proforma invoice (Proforma Invoice)
Preliminary document: A proforma invoice is a preliminary invoice that provides information about the seller's obligation to provide goods or services at a specified price.
Not a final invoice: This document does not confirm the shipment of goods or the provision of services, and the price and list of goods may be changed before the final order is placed.
Usage: Proforma invoice is often used for: humanitarian aid, participation in exhibitions, promotions, or auctions, or to obtain confirmation from the buyer before shipment or provision of services.
- Commercial Invoice (Commercial Invoice)
Final invoice: A commercial invoice is a final invoice that confirms the sale of goods or services and is the basis for settlement between the seller and the buyer.
Customs declaration: This document is mandatory for the customs declaration when exporting goods across international borders.
VAT and customs duties: VAT and customs duties are calculated on the basis of the commercial invoice.
Invoicing procedure
- Person responsible for issuing: The invoice is usually issued by the sender or an employee of the enterprise who has the appropriate authority. This can be an employee who is engaged in sending goods abroad or a person responsible for processing and signing documents. Only persons authorized by the enterprise have the right to sign invoices and other related documents. This ensures the legal force and accuracy of the issued documents.
- Invoice language: Invoices in international trade are usually drawn up in English. This is due to the fact that English is the international language of business and trade. Therefore, to ensure comprehensibility and a uniform standard, the documents are filled out in English. In some cases, it may be necessary to translate the invoice into the languages of the recipient countries, if this is required by local law or for the convenience of customers.
- Invoicing: The invoice must contain all the necessary details, such as supplier and buyer details, details of goods or services, prices, terms of payment and delivery, etc. It is important to ensure that all data is accurate to avoid problems with payment or customs clearance. Invoices can be issued in paper or electronic format. Modern accounting and automation systems often use electronic invoices to simplify processes and reduce possible errors.Legal assistance in drawing up an invoice:
Lawyer services in drawing up an invoice:
Here are the types of legal services in terms of drawing up shipping documents:
- Verification of compliance with legislation and legal analysis of the situation:
Legal requirements: The lawyer checks whether the invoice meets the requirements of the legislation of the country where the business is conducted, in particular the requirements of tax and accounting legislation.
International agreements: If the business is international in nature, the lawyer services online will ensure that the invoice complies with international standards and requirements of different countries.
- Legal services when issuing an invoice:
Correctness of details: Lawyers online will help check the correctness of information about the parties to the agreement (supplier and buyer), including legal names of companies, addresses, identification codes, etc.
Goods and services: The lawyer help will ensure that the description of the goods or services is correct and meets the contract and technical requirements.
- Terms of payment and delivery:
Terms of payment: The lawyer can provide advice on clearly wording the terms of payment, such as terms, methods of payment, possible fines for late payments.
Terms of delivery: Make sure that the terms of delivery correspond to the concluded contract and are clearly indicated in the invoice.
- Lawyer consultation on tax aspects:
Inclusion of VAT: Checking the correctness of the calculation and indication of value added tax (VAT), if applicable. The lawyer will ensure compliance with tax legislation and international tax treaties.
Customs Duties: Advice on customs duties and charges that must be invoiced for international shipments.
- Services of a lawyer in resolving disputes:
Disputes: A lawyer can help in the event of a dispute with a client or counterparty due to an incorrect invoice or non-payment.
Settlement: Consultations on possible methods of pre-trial settlement of disputed situations.
An invoice is a critically important document in commercial relations that ensures clarity and transparency of financial transactions. A lawyer advice on invoicing will help to reduce risks and ensure compliance with all necessary requirements, which in turn will contribute to the successful conduct of business and the avoidance of legal difficulties in business.
