What is an invoice?

The invoice corresponds to the document established by the company following a commercial transaction. It allows you to prove the execution of a contract and request payment. The invoice makes it possible to materialise the financial transaction carried out. This is one of the elements that makes it possible to calculate VAT rights (collected and deducted). Furthermore, the invoice must be drawn up in 2 copies, one for the buyer and one which is kept by the seller.

Is producing an invoice obligatory?

Producing an invoice is mandatory in the context of a BtoB sale, therefore from professional to professional. An individual can request an invoice, but this is not a legal obligation except in certain cases:

• when the customer expressly requests it
• for distance sales
• during intra-community deliveries exempt from VAT

The different types of invoices?

There are various types of invoice, each of which is used for specific purposes:

• The proforma invoice; This provisional invoice is requested by the customer so that he can get an idea of future costs. It has no legal or accounting value but is essential if the customer wants to take out a loan to make their purchase.
• The deposit invoice; This invoice is used for payment of deposits paid before the start of the contract.
• The status (or progress) invoice; this invoice is an intermediary that the service provider or seller publishes as the project progresses.
• The closing (or final) invoice; This invoice is issued upon receipt of the goods or following the completion of the services, it allows proof of the purchase or sale of goods and services. This document is legal, commercial, accounting and tax.
• The credit invoice; this bill allows you to modify or cancel an invoice issued following, for example, an error, a refund or the cancellation of a service.

What are the mandatory elements on an invoice?

• An “Invoice” note and the invoice number
• The date of issue of the invoice
• The identity and contact details/addresses of both parties (VAT number, SIREN number and legal form)
• Description of products and services
• The quantity of products or services
• Prices excluding taxes and VAT rates
• The total amount with and without taxes
• Payment conditions (payment deadlines, amount of possible deposit)
• Penalties applicable in the event of late payment (rate of late payment penalties and fixed compensation of 40 EUR) if BtoB.

Additional legal notices

Depending on the legal structure of the company, certain additional legal notices are mandatory.

• Social capital for companies
• The RCS number + the name of the city of the registration office for traders
• The number in the trade directory (Siren + RM + number of the registration department) for craftsmen
• Civil liability insurance and ten-year insurance if the company has one, as well as contact details and the area covered.