There are several types of invoices:
Ordinary invoice: This is the most common invoice and presents detailed information about a commercial transaction.- Simplified invoice: As its name suggests, a simplified invoice is an invoice with reduced and simplified information. It is generally used in cases such as retail sales or low-value transactions. Therefore, it is limited to basic information about the purchase and sale transaction (names, addresses, dates, description of products and services, and total cost).
- Corrective invoice: Issued to correct errors or inaccuracies in a previous invoice. It should reflect detailed information about the original invoice and the corrections made.
- Summary invoice: Groups several sales transactions into one. This makes it possible to issue a single invoice that includes all the others instead of generating several separate invoices.
- Proforma invoice: This is issued before goods or services are delivered. It mainly informs the buyer about the transaction details before delivery. In this sense, an invoice acts as a draft, so it has no legal validity.
Invoice for Small Business
As a small business, according to § 19 UStG, you are not obliged to collect and pay VAT, which saves you a lot of paperwork. But this does not mean that you should not take care of the correct preparation of invoices. Each invoice must contain certain information to comply with legal requirements.
Why is correct e-invoicing so important?
Correctly issuing invoices is essential not only for you but also for your client. Inaccuracies can lead to tax refunds, fines, and even legal problems. Correctly issuing invoices creates trust between you and your clients and lays the foundation for a successful business relationship.
What’s included in a small business invoice?
A small business invoice differs from a regular invoice in several ways. It must contain the following information:
- Name and address of the organization issuing the invoice and the recipient of the invoice
- Unique invoice number
- Date of issue of invoice
- Date of delivery or provision of service
- An accurate description of the goods or services supplied
- Invoice amount
- Reference to the regulation on small businesses by § 19 UStG
Invoicing as a Private Individual: Is It Possible?
Here’s where it gets interesting: as a small business owner, you can also issue invoices as a private individual. However, in this case, the invoice must also meet specific requirements to be considered valid. If you issue an invoice as a private individual, ensure the above requirements apply. Invoicing as a private individual and issuing an invoice for a small business are very similar in principle, although the tax aspects for a private individual are usually less complex.
Invoice Template for Individuals: A Useful Tool
Templates can be handy if you have little experience in writing invoices. An invoice template for individuals contains all the necessary fields to be filled in, so you can be sure you will remember all vital information. However, remember that an e-invoice template for an individual should be based on the latest legal regulations.
One-time invoice from a private individual
A one-off invoice from a private individual is often the case when you sell someone a specific service or product without seeking an ongoing business relationship. The invoice must meet specific legal requirements, even a one-off transaction. These include the name and address of the invoice issuer and recipient, a detailed description of the service rendered or product sold, the invoice amount and, if applicable, a reference to the fact that VAT is not charged. Be sure to document all necessary information carefully to avoid ambiguity and legal problems later. Invoicing as an individual requires, first of all, a good knowledge of regulatory documents, so it is worth seeking help from an accounting firm.
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