An accurate invoice is essential for efficient administration and smooth payment. Unfortunately, mistakes are often made on invoices, which can lead to delays, frustration and even fines. In this blog, we discuss the most common mistakes on invoices so you can avoid them.
1. Mandatory data missing
There are a number of legally required details that must be on every invoice. If these details are missing, the invoice is invalid and the customer may refuse to pay. The following details are mandatory:
- The name and address of your company
- Your company's Chamber of Commerce number
- Your company's VAT number
- Your company's IBAN number
- Invoice number
- Invoice date
- Customer name and address
- Description of the delivered products or services
- Quantity of products or services supplied
- Unit price
- VAT rate and VAT amount
- Total amount excluding VAT and including VAT
In some situations, the customer's VAT number must also appear on the invoice. This is the case when exporting goods to other EU countries and certain services, related to them, such as transport services. The customer's VAT number must also appear on the invoice in case of reverse charge. Furthermore, the invoice must show whether a special VAT regime applies.
2. Errors in the VAT calculation
Errors in the VAT calculation are unfortunately common. Make sure you apply the correct VAT rates and calculate VAT correctly. You can use a GST calculator or VAT calculator for this purpose.
Click here for VAT calculators of different countries:
Calcul TVA
BTW berekenen
Mwst Rechner
Calcolare IVA
Calcular IVA
3. Wrong invoice date
The invoice date is important for payment terms and VAT returns. So make sure the invoice date is correct.
4. Incorrect description of products or services supplied
The description of the delivered products or services should be clear and concise. This way, the customer knows exactly what he or she has bought.
5. Errors in bank details
Always check carefully that the bank details on the invoice are correct. This prevents the customer from transferring money to a wrong or non-existent account.
Payment term regulations
If you supply a product or service to an entrepreneur or the government, the same rules apply within the EU:
- If you do not agree anything, the invoice must be paid within 30 days.
- In an agreement, you may agree on a term.
- If you want the payment period to be even longer, you and your customer must be able to prove that it is not detrimental to either party.
You determine the legal payment term for consumers. You should state this in your general terms and conditions or contract.
Tips for drawing up a correct invoice
- Use an invoice template or invoicing programme.
- Always check the invoice carefully before sending it.
- Send the invoice to the customer on time.
- Keep a copy of the invoice in your records.
By following the above tips, you can avoid the most common mistakes on invoices. This will ensure efficient administration and smooth payment of your invoices.