Commercial Invoice Procedures & Calculations

Understanding Invoices

An invoice is a document derived from a legally established commercial operation. To create invoices, information from the order note and delivery note will be taken into account.

Invoice Issuance Essentials

Key considerations for issuing invoices include:

• Issuance Requirement: Issue invoices for all operations undertaken in your business activity. It's crucial to keep a copy of each invoice, even in cases of self-consumption, with certain exceptions.
• Mandatory Issuance Cases: Invoices must be issued in all circumstances for the following operations:
  • When the recipient requests it.
  • For goods delivered to another Member State of the European Union.
  • When recipients are Public Administrations.
  • For work executions.
  • For deliveries of investment gold.
• Timing of Issuance: The invoice should be issued at the time the operation is performed.
• Consolidated Invoicing: It is permissible to include all operations performed for a single consignee within one calendar month, or a shorter period, on the same invoice.

Equivalent Invoice Documents

For operations where the total amount does not exceed €3,005.06, standard invoices may be substituted by numbered voucher books or tickets. This applies to various services and sales, including:

• Retail sales (e.g., in-store purchases)
• Home delivery sales (e.g., Thermomix)
• Hotel and catering services (e.g., bars, restaurants)
• Dance halls and nightclubs (e.g., entry stamps)
• Telephonic services
• Video store services (e.g., movie rentals)
• Vehicle parking (e.g., parking tickets)
• Transport of people and their luggage (e.g., taxis)

These vouchers and tickets must contain, at a minimum, the following data:

• Number and series
• Tax Identification Number (NIF) of the issuer
• Applied tax rate
• Total consideration (total amount payable)

Correcting Invoice Errors (Rectification)

The amount stated on an invoice may need to be modified (rectified) under several circumstances, such as:

• Errors on the original invoice.
• Variation in remuneration (e.g., price changes after issuance).
• When all or part of the transactions subject to Value Added Tax (VAT) are annulled.
• When the recipient fails to pay the passed-on VAT charges.

Calculating the Invoice Total

The basic calculation for the invoice amount is: Unit price × Number of units purchased.

Applying Invoice Discounts

A discount represents a reduction in the gross amount of the invoice and is typically expressed as a percentage. Common types of discounts include:

• Commercial Discount: This discount is generally applied and directly affects the gross amount of the invoice.
• Volume Discount: This is applied when a customer acquires a predetermined quantity of merchandise or reaches a specific purchase volume during a transaction. It is calculated on the gross amount of the product.
• Prompt Payment Discount (P.P.): This discount is offered for the total or partial payment of an incurred debt before its official due date. It is usually applied to the net amount payable (after other discounts).

Managing Invoice Expenses

Certain expenses can be added to an invoice, increasing the total amount due. These include:

Delivery Costs

When goods are purchased, suppliers arrange for their delivery to the customer using an agreed-upon transport method and location. Delivery can be handled in various ways:

• Using the seller's own transportation means.
• Through a third-party transport agency (e.g., Seur, DHL, etc.).

Payment terms for delivery costs can be structured as follows:

• Freight Collect (Portes Debidos): The delivery costs are paid by the buyer upon receipt of the goods.
• Carriage Paid (Portes Pagados): The delivery costs are paid by the seller.
• Cash on Delivery (Contra Reembolso): The purchaser pays for the transportation, the product, and the applicable VAT upon receiving the goods. The VAT rate for transportation will be the same as that applicable to the invoiced goods.

Other Costs

Additional expenses such as insurance, commissions, special packaging, etc., can also be included and will increase the total invoice amount.