Billing is a reflection of the constant activity of a business. This document shows the data related to the services provided or the products sold in a certain time. The regulations inherent in the realization of this documentation vary in some circumstances as we will see below. For example, when the recipient of the invoice is a foreign customer. A business can live this moment for the first time at some time from the expansion of its idea.
Those projects that keep the focus on the goal of internationalization must be especially attentive to this issue. What steps should you follow then? First of all, it is recommended that to answer any questions about this procedure, taking into account the particular reality of the case, have the advice of a specialist.
What is intra-community VAT and how to apply it
In this identification of billing to a foreign customer, the issuer must differentiate between an intra-community invoice and the document presented to a customer that is outside this space. In the first case, this example should comply with the rules on intra-community VAT applied to commercial operations carried out in this context. Otherwise, the scheme of a regular invoice can serve as a basis for completing the data related to this sale. The corresponding number, the data of the parties that are part of this business relationship, the subject and the price must be included.
When the parties involved in this operation are registered in the registry of intra-community operators, this circumstance derives from the fact that the invoice must not present VAT in the event that the recipient of the services provided is a professional or a business . When a self-employed person or company is part of the ROI , after having completed the necessary process for it, it has a corresponding identification of NIF-VAT that accredits it.
Receive the name of VIES the means of Exchange of Information on VAT through which the responsible person can check if the customer is also part of this space.
How to make an invoice to a non-EU country
What happens then in this particular situation that refers to a commercial operation with a customer from a destination that is not part of the European Union? In this case, the invoice must not present VAT. The characteristics of extra-community operations that show the essence of an export are different from those classified as intra-community that have their own regulations that regulate them. The personal income tax should not be applied in this type of billing.
When a business wishes to position its catalog in a scenario in which globalization increases the level of projection, there may also be limits that may hinder this action plan. For example, doubts about the billing process. Issues that should be resolved individually. In addition to this advice, there are also support tools for companies to carry out this process with the support of a billing software.