Normally, all employers and professionals have the duty to issue an invoice in two cases, when they provide a service or deliver a good. However, there are occasions when this is not going to be necessary and that will lead to the self-employed not having to issue the corresponding invoice.
For example, it is not necessary to issue an invoice in the special VAT regimes. Neither is it enforceable in operations exempt from VAT, except for hospitalization or health care services, transportation of patients, medical professionals or the like, deliveries of goods used in exempt operations and operations related to real estate exemptions.
Continuing with more examples, it is not necessary to issue an invoice at the equivalence surcharge either. The equivalence surcharge applies to retail trade, specifically to retail trade in movable goods. Retail trade is characterized in that sales are made to the end customer of the product. In this way the merchant is not forced to issue an invoice.
In the simplified one, unless the determination of the installments that have already been accrued is carried out according to the volume of income and except for the transmission of fixed assets.
Advantages of invoicing
If you are not within the cases that we have mentioned (which are the most significant) or in those indicated by the Tax Agency, you are obliged to issue an invoice.
The invoice is the document that serves as proof by which the economic facts of your activity can be demonstrated. For example, if you are a copywriter and have had to write an article, the invoice will serve as proof that the service has been provided.
However, for it to serve as a means of proof it is necessary that certain requirements are met.
For example, you will need certain information such as the name of the buyer and the seller, either company or individual, the identification of the product, how much it costs per unit, if there is a discount and also add VAT.
The main advantages of invoicing are the following:
-First, they serve as a means of proof to demonstrate that the service has occurred.
-In addition, you will be able to obtain truthful information about the company or the individual you are billing, which in case of non-payment will be very useful. Many people are left uncharged due to the fact that they do not know true information about their client and he refuses to pay them.
-You have to take into account that the invoice allows you to carry out an exhaustive control of your activity. They serve as an accounting document.
-With the invoices you will pay what you have to pay for VAT and nothing else. Many people try to pay less VAT and believe that this is a good thing to do, not by making an invoice, but for example, with the equivalence surcharge you end up paying more VAT.
For these reasons it is better to issue an invoice. You will have greater control over your finances and, this will result in more rest for you, you will be calmer.
Even so, there are formulas that even without issuing an invoice can be very beneficial, such as in some cases the equivalence surcharge.
However, issuing invoices, as we have said, will help you have greater peace of mind. If you know data such as your client's name, surname, ID and tax address, in case of non-payment, it will be easier for you to file a lawsuit.
However, it depends on the case to see if it is better or not to issue an invoice. For this, the most convenient is to have the services of a tax agency or a tax advisor, in short, a professional.
