Unfortunately for many people and for society in general, schools don't usually explain the complex world of billing to us. Nor is it something that parents can teach us from an early age, unless they work in the financial world. That's why we learn everything related to finance either on our own in a business or because we study a specific degree focused on it. Likewise, we find that most people do not know something as basic as what billing information a company needs to provide when issuing invoices. In this article, we will try to explain this in detail.
What billing information must a company provide?
But before getting into the what billing data is, it is best to explain what an invoice is. An invoice is any document that records everything that makes up a commercial transaction. That is, what goods or services have been sold, for how much, between whom, when, etc. Thus, invoicing data for those involved in the transaction.
Therefore, any invoice will contain billing information for both the company issuing the invoice and the party receiving it. So we are talking about tax details is key to establishing who sells a product or service and who buys it. Information about the parties involved in the transaction, apart from the price, date, numbering, or other aspects that also make up invoices.
When preparing an invoice, the company that generates and issues it is responsible for including both the customer's and the supplier's billing information. In other words, the company that will collect payment. However, legally, it is only required to include the following:
- The tax name under which the issuing company is registered, as well as that of the company receiving the goods or services.
- The CIF, which is the Tax Identification Code of any individual.
- The company's tax domicile, which is the place where it is registered for commercial purposes (which does not necessarily have to coincide with the physical headquarters and/or
In addition, the issuer of the invoice may also include other billing information. This could be about their company or about the company that will receive the invoice. We are talking about the zip code, the town where the customer is located, their phone or email.
In addition to the companies' tax data, invoices must contain the billing information relating to the transaction, as listed below:
- The series, which numbers the invoices that have been issued up to that point and which is normally reset annually.
- The concepts, which should be explained in detail.
- The tax base, which is the value of the service or product.
- The tax rates (and discounts, if any) that apply, such as VAT or income tax withholding percentage.
- The date of issue.
- The total amount (and actual) of the transaction.
In addition, you can also add other optional features, such as the expiration date (the deadline for payment), the payment method (transfer, deposit, PayPal, Stripe, etc.) or any comments you wish to make to the customer.
Why is it so important to include this information?
From easyap, experts in online invoicing for more than two decades, we recommend that the more customer tax information you include, the better. As they say, information is power.
They provide legal certainty.
After all, invoices are the documents that attest to a commercial transaction. Therefore, the more information they contain, the clearer everything will be. Likewise, billing information is just as important in case the customer does not pay you in the future or makes a claim regarding an invoice. In a legal dispute over non-payment or similar, the billing information will tip the balance.
They are used for accounting and tax traceability.
In turn, just as billing data serves to identify a customer (and to identify them accurately), it also helps in other ways. For example, it is useful for traceability and taxation of the operations carried out by a company. This is why institutions and tax authorities require certain basic data. It is very useful for their tax controls, and they will be placing greater emphasis on this starting this year.
Tool for generating reports and analyzing data
We can even highlight the importance of tax data when analyzing customers. In other words, by including this information in your records, you will also be entering specific data about the companies you work with, their origin, the volume of business they represent, and other types of information that may be very relevant.
Source of information and for tracking invoices
Finally, we would also like to highlight that they are very convenient for informing and assisting customers or suppliers. Through invoices, you can provide them with a lot of information. Without going any further, how, when, and how much they have to pay. And if they have all this information, they will feel more confident in you and are more likely to collaborate with you again in the future. In addition, the payment process will be faster and more convenient for both parties.
What happens if the company does not provide specific billing information?
But what should you do if the company does not provide you with specific billing information? It depends on the information we are referring to. Even so, we can tell you in advance that you will either have to ask the customer for it or find it yourself.
If it is a mandatory billing information such as those listed above, you will have to request it again. In Spain, electronic invoicing is mandatory with the Public Administration and will soon be mandatory for all types of companies. Therefore, you will not be able to legally issue or pay invoices without this mandatory information.
In this regard, you should know that there are ways to find out certain information and tax data on the vast majority of companies operating in Spain. For example, to find out your own tax data, you can access the Tax Agency website and access your Personal Area. At the same time, there are many directories and websites on the Internet that list the billing information of a large number of companies.
If you have entered the information incorrectly and the invoice has already been issued, you will have to correct it and issue a new one. This is known as issuing a corrective invoice, which replaces and invalidates the original invoice. This will help you avoid potential penalties that may result from sending invoices with incorrect or non-existent billing information.
The role of easyap in your bills
As we say, issuing incorrect invoices (whether intentionally or unintentionally) is no minor matter. You could find yourself embroiled in tax problems and facing severe tax consequences. These could range from various types of fines to even the closure of your business.
Fortunately, technology can also help you avoid problems of this kind. In fact, easyap software is a great example of this. With our solution, you will have a program that allows you to:
- Issue your invoices with all the information you want, both mandatory and optional.
- Receive invoices from your customers and enter them into the system.
- Having a supplier portal where they can track the status of their invoices.
- Manage taxes that affect your business accounting.
In addition, all your invoice information, customer and supplier billing details, and your business's accounting and tax records will be conveniently organized in a single space in the cloud. You can access it through the software, which stands out for being accessible, efficient, and convenient for you and everyone on your team. Want to know more?
