The Calling Card of Every Entrepreneur

The entrepreneur’s proper invoicing for their services is not only relevant for taxation, but is also the calling card of every entrepreneur. Moreover, it is a reflection of the professionalism that is shown in the execution of the entrepreneur’s services; services which are completed with a proper invoice.

In principle, invoices must have the following formal requirements (minimum information):

• name and address of the performing entrepreneur
• name and address of the recipient of the delivery or service
• quantity and commercial name of the goods provided, or the type and scope of any other services rendered
• day/period of delivery or service provision
• remuneration and applicable tax rate, or an indication of the corresponding tax exemption (e.g. for small businesses)
• taxable amount that is attributable to the fee (if the small business regulation does not apply)
• date of issue of the invoice
• consecutive number to identify the invoice
• VAT number of the performing entrepreneur if they provide services in the country for which the right to deduct input tax exists (except tax-exempt business owners, such as small business owners)
• VAT number of the service recipient, provided that the tax liability is transferred to the recipient (reverse charge) as well as a reference to the transfer of the tax liability

It should also be noted that in the case of an invoice whose total amount exceeds €10,000.00 gross, the VAT ID number of the recipient of the service, or the recipient of the delivery must also be stated.

In times of digitalization, the necessary criteria for an electronic invoice must also be taken into account. An electronic invoice is an invoice that is issued and received in an electronic format (e.g. email, fax). Furthermore, an electronic invoice is considered an invoice if the following criteria are met, in addition to the formal requirements listed above:

• the recipient of the service has agreed to this type of invoicing
• the authenticity of the origin of the invoice is guaranteed (= security of the identity of the entrepreneur making the payment)
• the integrity of the invoice content is guaranteed. In other words, the aforementioned invoice information has not been changed
• the legibility of the invoice is guaranteed

If an invoice is transmitted both electronically (e.g. by e-mail) and in paper format, this must be referred to on the invoice in order to avoid multiple VAT liability, based on the invoice(s).

Of course, we will be by your side, if you have any questions. To make an appointment for a Zoom Meeting, or with us in person, e-mail: info@artus.at or call 01-513 79 00-0.