What is a small amount invoice?
Certain things must be on every invoice, this is the address of the recipient, an invoice number and of course a tax number must not be missing. In order not to have to issue such a complicated invoice for everyone who has bought something under 250 euros, there is the small amount invoice . Such an invoice does not need to show any amounts below this.
Invoices are not only important documents, because an invoice can of course also be regarded as a normal receipt, a receipt or a contract. They should all be kept, because after all they also serve as a kind of guarantee document. Everyone has probably noticed more than once that their name and address were not noted on every invoice.
The small amount calculation is a great relief
In the normal everyday world it is not possible under any circumstances that everyone who purchases something is issued an invoice with all the little things. That is why there is the small amount invoice, which can come into force up to an amount of 250 euros. Exceptions are of course if an invoice is requested for a smaller amount.
What must everything be on a small amount invoice?
The following information is required:
- Name and address of the company providing the service
- Exact delivery description
- Gross price
- VAT rate (7 or 19 percent)
Who are these bills for?
Everyone who is self-employed will learn everything about invoicing from their tax advisor. But there are also those who just want to earn something, they don’t need to write long bills, but can rely on the small amount invoice.
The recipient of a small amount invoice does not need to be mentioned, the information already mentioned applies. The most important points are once again, the date of the invoice, a list of the services that were performed and of course the tax rate. The name and address of the exhibitor must also appear separately.
The small amount invoice has enormous advantages, because writing the invoice can be quite complicated at times. The creation of such an invoice is relatively easy and the bookkeeping is also a lot easier. In the case of a normal invoice, however, you can also download a free invoice template and use it again and again.
Pay attention to the little things
According to foodanddrinkjournal.com, the small amount invoice must be one hundred percent correct in any case, so it must show the correct information. If this is not taken care of or if an item is missing, one can even speak of attempted tax evasion .
This type of invoicing was introduced to avoid unnecessary work. It is there to allow an input tax deduction , even if only minimal information has to be given on it. Bills can be included if they have an amount of 250 euros do not exceed. In a retail store, for example, it cannot be expected of an employee to issue an invoice for every purchase, so the till receipt is sufficient here. Everything necessary is listed on the receipt so that the trader only needs copies of them for his tax advisor and for a tax office.
Errors that should not occur under any circumstances with a small amount invoice are a wrong or incorrect address. An incorrect description of goods or services. The sales tax rate must not be missing, nor the correct date.
From an amount of over 250 euros, there are stricter standards. Such a receipt must then contain everything correctly; the most important thing here is the correct and complete company name. Usually the first and last name of a company or retailer must be given. A normal invoice must also show the sales tax rate and not just the percentage. The receipt must also have a consecutive invoice number and, again, the tax number is important.
The characteristics of an invoice determined by the legislator always determine whether there is an entitlement to an input tax deduction.