Mandatory fields of an invoice

The invoices which do not include VAT to deduct have the following requirements. According to Accounting Act § 7 the source document has to contain the following information (applies for the source documents which has no possibility for input tax deduction):

  • the date of the preparation of the document;
  • the economic substance of the transaction;
  • the name and number of the document;
  • the figures relating to the transaction (quantity, price and total amount);
  • identification data of the parties to the transaction (Seller and Buyer).

Examples of most common purchases:

  • receipt from store;
  • receipt from automatic gas station;
  • taxi ride which has been paid via mobile app;
  • other invoices for various purchases.

These contain time of the payment, substance of the transaction, sum and other references, but none of these do not have a marking, to whom the cost belongs to (no buyer´s name). If the simplified invoice is missing a buyer´s name, then the source document do not prove enough that the cost is related to any business activity and the company´s name has to be written by hand onto the receipt (for an electronic document before taking the picture). If the proof is not enough, the document is considered unrelated to business activity and it will be taxed with the income tax.

Often these kind of the documents also are missing the identification number (invoice number etc).

As it is seen on the picture, there is a date, sum, substance of the transaction, but no name

of the buyer. This document is not enough to prove the relation to business activity. It can be turned to sufficient document by writing the compnay´s name on it.

To save time it may be considered to use a temple/stamp with the company´s information.

NB! On the picture there are the receipt from the store (left) and also the card payment receipt (right).

The card payment receipt itself is not sufficient as there’s no economic substance of the transaction.

This is an example of the taxi ride receipt which isn’t proper source document. Although there is the economic substance of the transaction, the document is missing company’s details which are the primary details required. Also there´s no invoice number on the receipt.

There is no possibility to make this receipt proper, so it will be taxed.

For further information You may read more thoroughly from here.

If the invoice includes VAT (given by a person liable to VAT) the following rules apply:

According to VAT Act § 37 the following shall be set out in an invoice:

  1. the serial number and issue date of the invoice;
  2. the name and address of the taxable person and the person’s registration number as a taxable person (VAT number);
  3. the name and address of the acquirer of goods or the recipient of services;
  4. the registration number of the acquirer of goods or the recipient of services as a taxable person if the acquirer of goods or the recipient of services has tax liabilities upon the acquisition of goods or receipt of services;
  5. the name or a description of the goods or services;
  6. the quantity of the goods or extent of the services;
  7. the date of dispatch of the goods or provision of the services or the date of receipt of full or partial payment for the goods or services if the date can be determined and differs from the date of issue of the invoice;
  8. the price of the goods or services exclusive of value added tax and any discounts, if these are not included in the price;
  9. the taxable amount broken down by different rates of value added tax together with the applicable rates of value added tax or the amount of supply exempt from tax;
  10. the amount of value added tax payable, except in the cases provided by law. The amount of value added tax shall be indicated in euros.