[VIDEO] The importance of clearly specifying the concept in an invoice
Posted: Wed Dec 18, 2024 8:31 am
You need to pay close attention to the concept of an invoice when it is issued. In addition, it must comply with the regulations regarding the requirements and data it must contain. We will tell you everything!
Correctly describing the concept on an invoice is very important. We explain why.
We give you some tips to correctly define the concept in your invoices.
Every invoice must include a description of the operations , that is, the concept , and must include all the data necessary to determine the tax base.
The unit price must be djibouti email list reflected without tax and must include any discounts or rebates not included in the unit price.
The invoicing regulations determine the requirements that invoices must meet and the data that they must contain in order to be tax deductible.
Start of marked textTWEET IT! Do you know the importance of specifying the concept well in an invoice? Find out.End of marked text
PRESS PLAY!
START YOUR BUSINESS STEP BY STEP: With the help of expert David Tuneu, discover how to start invoicing or invoice easily.
What information should an invoice contain?
Every complete invoice and its copies must contain, at least, the data or requirements listed below:
Number and, where applicable, series . The numbering of invoices within each series will be consecutive.
The date of its issue .
Name and surname, full business name or corporate name , both of the person required to issue the invoice and of the recipient of the operations.
Tax Identification Number assigned by the Spanish tax authority or, where applicable, by that of another Member State of the European Union, both to the person required to issue an invoice and to the recipient of the operations.
Address , both of the person required to issue the invoice and of the recipient of the operations.
Description or concept of operations .
The tax rate or tax rates, if applicable, applied to the transactions.
The tax rate that, if applicable, is passed on, which must be recorded separately.
The date on which the documented transactions were carried out or on which, where applicable, the advance payment was received, provided that this is a date other than the date on which the invoice was issued.
In the case of deliveries of new means of transport, the date of their first commissioning and the distances travelled or hours of navigation or flight completed until their delivery.
If any of the following circumstances occur, mention it: exempt operation , invoicing by recipient, reversal of the taxable person, Special Regime for Travel Agencies or Special Regime for used goods
Don't forget to fill in all the information mentioned above to ensure that your invoice is processed correctly.
Why is it so important to correctly describe the concept on an invoice?
A good description of the product or service that is the origin of the invoice is as important as including the details of the issuer and recipient of the invoice.
In order for the Tax Agency to accept an invoice as deductible, it places special emphasis on a correct justification of this deduction based on the services or deliveries of goods listed therein.
An incorrect or vague description of the concept could render the invoice invalid for tax purposes . This will mean that the VAT or the expense cannot be deducted from the Corporate Tax or from the Personal Income Tax in the case of self-employed workers.
A ruling by the National Court reinforces this criterion, indicating that "invoices are not suitable as a means of proving the services subject to billing when they are reflected in a vague and indeterminate manner."
It also states that "the proof of the reality of the service is the responsibility of the taxpayer; it is necessary that the invoiced operations be specified, without the mere description of the "concept" (rent, supply or health services) being sufficient for these purposes, and it is also necessary that said specification be accompanied by the appropriate supporting documents."
Correctly describing the concept on an invoice is very important. We explain why.
We give you some tips to correctly define the concept in your invoices.
Every invoice must include a description of the operations , that is, the concept , and must include all the data necessary to determine the tax base.
The unit price must be djibouti email list reflected without tax and must include any discounts or rebates not included in the unit price.
The invoicing regulations determine the requirements that invoices must meet and the data that they must contain in order to be tax deductible.
Start of marked textTWEET IT! Do you know the importance of specifying the concept well in an invoice? Find out.End of marked text
PRESS PLAY!
START YOUR BUSINESS STEP BY STEP: With the help of expert David Tuneu, discover how to start invoicing or invoice easily.
What information should an invoice contain?
Every complete invoice and its copies must contain, at least, the data or requirements listed below:
Number and, where applicable, series . The numbering of invoices within each series will be consecutive.
The date of its issue .
Name and surname, full business name or corporate name , both of the person required to issue the invoice and of the recipient of the operations.
Tax Identification Number assigned by the Spanish tax authority or, where applicable, by that of another Member State of the European Union, both to the person required to issue an invoice and to the recipient of the operations.
Address , both of the person required to issue the invoice and of the recipient of the operations.
Description or concept of operations .
The tax rate or tax rates, if applicable, applied to the transactions.
The tax rate that, if applicable, is passed on, which must be recorded separately.
The date on which the documented transactions were carried out or on which, where applicable, the advance payment was received, provided that this is a date other than the date on which the invoice was issued.
In the case of deliveries of new means of transport, the date of their first commissioning and the distances travelled or hours of navigation or flight completed until their delivery.
If any of the following circumstances occur, mention it: exempt operation , invoicing by recipient, reversal of the taxable person, Special Regime for Travel Agencies or Special Regime for used goods
Don't forget to fill in all the information mentioned above to ensure that your invoice is processed correctly.
Why is it so important to correctly describe the concept on an invoice?
A good description of the product or service that is the origin of the invoice is as important as including the details of the issuer and recipient of the invoice.
In order for the Tax Agency to accept an invoice as deductible, it places special emphasis on a correct justification of this deduction based on the services or deliveries of goods listed therein.
An incorrect or vague description of the concept could render the invoice invalid for tax purposes . This will mean that the VAT or the expense cannot be deducted from the Corporate Tax or from the Personal Income Tax in the case of self-employed workers.
A ruling by the National Court reinforces this criterion, indicating that "invoices are not suitable as a means of proving the services subject to billing when they are reflected in a vague and indeterminate manner."
It also states that "the proof of the reality of the service is the responsibility of the taxpayer; it is necessary that the invoiced operations be specified, without the mere description of the "concept" (rent, supply or health services) being sufficient for these purposes, and it is also necessary that said specification be accompanied by the appropriate supporting documents."