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What is required on a Sales Invoice

There are many, many ways that businesses raise sales invoices. It does not matter whether you are a large business or an entrepreneur starting out, it is vital that you create and use a sales invoice that has all the required information on it.

There are a multitude of methods to raise a sales invoice for your business, ranging from using Microsoft Word to an accounts software package (SortMyBooks, Xero). Most packages will provide you with a ready to go template for a sales invoice, whereas creating one yourself can cause problems for your business if all the required information is not contained on the sales invoice. This is one of the most frequent problems encountered with businesses and is easily preventable if you follow some basic steps.

Have a look below at what is required on a VAT Sales Invoice (information retrieved from Revenue).

The VAT invoice issued must show:

  1. the date of issue of the invoice,
  2. a sequential number, based on one or more series, which uniquely identifies the invoice,
  3. the full name, address and the registration number of the person who supplied the goods or services to which the invoice relates,
  4. the full name and address of the person to whom the goods or services were supplied,
  5. in the case of a reverse charge (excluding a supply of construction services subject to Relevant Contracts Tax) supply the Value-Added Tax identification number of the person to whom the supply was made and an indication that a reverse charge applies,
  6. in the case of a supply of goods, other than a reverse charge supply, to a person registered for Value-Added Tax in another Member State, the person’s Value-Added Tax identification number in that Member State and an indication that the invoice relates to an intra-Community supply of goods,
  7. the quantity and nature of the goods supplied or the extent and nature of the services rendered,
  8. the date on which the goods or services were supplied or, in the case of early payment prior to the completion of the supply, the date on which the payment on account was made, in so far as that date differs from the date of issue of the invoice,
  9. in respect of the goods or services supplied:
    • the unit price exclusive of VAT,
    • any discounts or price reductions not included in the unit price, and
    • the consideration exclusive of VAT.
  10. in the case where a tax representative is liable to pay the VAT in another Member State, the full name and address and the Value-Added Tax identification number of that representative.
  11. the VAT payable in respect of the supply of the goods or services, except in the case of:
    • a reverse charge supply, or
    • goods supplied:
      • under the margin scheme for second-hand goods, or
      • under the special scheme for auctioneers, where the invoice should be clearly endorsed ‘Margin Scheme – this invoice does not give the right to an input credit of VAT’.
  1. in the case where a tax representative is liable to pay the VAT in another Member State, the full name and address and the Value-Added Tax identification number of that representative.

Sales Invoices are the lifeblood of any business, so it is important to get them right from day one. This avoids unnecessary delays which could cause issues with cashflow. In future articles, we will explore in greater detail the impact of sequential sales invoice numbers on:

a) Allocation of monies received,

b) Debtors statements and

c) Debt collecting.

EBK offers clients a professional, reliable and first class service focusing on small to medium size businesses and is dedicated to providing a friendly and highly personalised bookkeeping service to our clients. If you have any questions or need assistance in insuring that your Sales Invoices are correct, contact us at info@ebk.ie or call us at +353 1 905 9436.