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What Must an Issued Invoice Include?


If you google the term ˝invoice˝, the all-knowing Internet will offer you a definition of it being a document which proves that a certain job has been done, i.e. that this is a document issued by a seller to their buyer for goods delivered or services rendered.

 

The VAT Act labels each document by which a tax payer (or the person he authorises) calculates goods delivered and services rendered as ˝an invoice˝, no matter what the document is referred to in business transactions.

 

Which information must an issued invoice include?

 

According to the already mentioned VAT Act, these are the necessary information:

 

1.    place of issue, invoice number and date of issue,

 

2.    name, address and OIB of the entrepreneur who delivered the goods or services (Seller),

 

3.    name, address and OIB of the person to whom the goods or services have been delivered (Buyer),

 

4.    amount and a common trade name of goods and services delivered

 

5.    date of delivering goods, i.e. of rendering services,

 

6.    fee amount (price) of goods delivered or services rendered, sorted by individual tax rates,

 

7.    tax amount, sorted by individual tax rates,

 

8.    cumulative amount of fees and taxes.


 

We believe it’s important to highlight several interesting facts related to issuing invoices:

 

•    if someone issues an invoice with separately specified VAT, and isn’t in the VAT system, then that person owes the specified VAT to the state, no matter the fact they aren’t VAT payers. On the other side, the buyer (invoice recipient) MUSTN’T use the pre-tax based on such an invoice;

 

•    if someone specifies VAT higher than what they owe by law on an issued invoice, then they owe this amount (higher tax) to the state. On the other side, the buyer (invoice recipient) can use only the ˝mathematically correct˝ tax amount. In order to correct the invoice which has been issued incorrectly, a special procedure is foreseen.

 

Invoices for cash transactions, in relation to the above described invoices, include:

 

1. invoice number and date of issue (no location)

 

2. the same as number 2 above, with reference to the location where delivery took

 

    place (e.g. a store number)

 

3. the same as number 4 above

 

4. total amount of fees and taxes, sorted by individual tax rates (so, it isn’t necessary to show the VAT base from calculated VAT separately)

 

It’s also necessary to know that the Companies Act prescribes required information every paper of a company, as well as every invoice, has to include: company name, company seat, the court where the company has been entered in the Court Register and the number of registration, company and seat of legal persons where invoices and invoice numbers are kept. The same goes for contents of the company’s website.

 

In addition to the already mentioned information, the following information also must be stated on company papers and the company website:

 

1. amount of share capital of the company, with the indication whether it has been paid in full. If it hasn’t been paid in full, one needs to indicate which part of this capital hasn’t been paid,

 

2. total number of issued shares, and if a company issues shares with a nominal amount, these amounts, if they are business papers of a public limited company,

 

3. last names and at least one first name of company Board members, of Board members of public limited companies (d.d.), i.e. of executive directors and the president of the Supervisory i.e. the Management Board.

 

Published 02/02/2012


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