Mandatory Invoice Information Guide

When creating an invoice, it must imperatively include mandatory mentions. Moreover, the invoicing process is strictly regulated by tax and commercial legislation. Issuing non-compliant invoices exposes the issuer to various sanctions such as fines, penalties, sale cancellation, etc. But concretely, what is an invoice? What are the mandatory mentions to put on an invoice? Why is it so important? How long should it be kept? We explain everything in this article. Follow the guide and happy reading!

What is an invoice?

It is a document that proves a purchase or sale transaction. Indeed, it is an essential element when you want to provide a service or product to a customer. The invoice always identifies two parties:

the creditor (the business);
the debtor (the customer);

Following the sending of the invoice, the debtor commits to paying the indicated amount before the end of the due date. We distinguish 2 types of invoices:

The pro forma invoice: this is established upon purchase;
The final invoice: it is established upon delivery of a product or following service provision.

Generally, invoices must be kept by both parties for a duration of 10 years (this depends on the nature of the product or service).

Mandatory mentions on invoices

It is imperative to indicate the following mandatory mentions on your invoices:

the identity of the professional and the customer;
type of invoice (Invoice, Credit note, Deposit);
the invoice date;
the invoice number;
company's intra-community VAT number
Company identifier and business name;
postal code, city and country of the company;
the date of sale or service provision;
the applicable VAT rate;
various mentions if tax is not applied: example, 'reverse charge'
the VAT amount and invoice amount;
payment terms and payment deadline;
all information related to the sale of products or services rendered (quantity, precise designation...);
the total amount to pay (excluding VAT and including VAT);
penalty rates in case of late payment...;
discount conditions in case of early payment, etc.;
the order or delivery number, if the invoice was created from one of these documents;
...

In addition to these obligations and depending on whether your customer is an individual or a legal entity, you must also indicate the following fields:

Legal Entities:

Customer's business name
Address, Postal code, City and Country of the customer
Customer's intra-community VAT number

Individuals:

Customer name
Customer postal code

Invoice numbering | The rules

Each invoice issued by a professional must have a number. Be careful, this should not be defined randomly. It must be unique, based on a chronological sequence, continuous and without breaks. Of course, if an invoice has several pages, the number must be indicated on each of them. You will have understood: online invoicing software is essential.

The importance of creating invoices compliant with legislation

A business must create invoices compliant with legislation for various reasons:

it's a commercial document: it details the sales conditions, payment or negotiation terms;
it's a legal document: it is governed by the commercial code;
it's a tax document: the invoice is governed by the tax code. For the seller, it is the basis for VAT collection;
it's an operational document: the invoice allows linking accounting and commercial management.

Tax sanctions

Also know that a business can be sentenced to a tax fine of €50 per missing or incorrect mention, which can go up to €500 for a first offense and up to €5000 in case of repeat offense, and this, for each invoice.

How long to keep an invoice

Previously, we mentioned that the invoice issuer and the customer must keep the invoice for a duration of 10 years. To do this, they can print invoices in paper format or digitize them in PDF format. However, this type of document must absolutely be timestamped to preserve the date of operations, but also be accompanied by a security device.

Not respecting invoicing rules can have serious consequences. This is why it is imperative to respect the mandatory mentions on an invoice. Fortunately, we are always listening to our customers to best meet their needs. You can also come test our online invoicing software for 15 days. It's completely free and without commitment. It will allow you to save time and manage your invoices with an iron fist. Of course, if you have questions, don't hesitate to contact us. We will respond to you as soon as possible.