- Invoices are important business documents that serve as the official record of many transactions.
- They can take different forms depending on their context and purpose. An invoice is a document that provides details about the goods or services a seller has provided and the amount the buyer owes.
- In addition to being legally binding documents, invoices serve fiscal purposes and are required as proof of a transaction in countries that assess a value-added tax.
- Invoices have different uses, including requesting payment, accounting and auditing, VAT reporting, and customs clearance.
- Issuing invoices is mandatory in VAT countries for accounting, auditing, and fiscal purposes.
- Simplified invoices are allowed for low-value transactions and certain sectors. There are only two types of invoices defined by most countries: invoices and simplified invoices.
- A tax invoice or VAT invoice is required for transactions subject to VAT.
Source Invopop
