What are some examples of common accounts
The small amount invoice - requirements, mandatory information, pitfalls
What is a small amount invoice?A small amount invoice is - surprise! - an invoice for a small amount. The maximum limit was recently set from 150 to 250 euros gross. It has been in effect since January 1, 2017; The deadline is the date on which the invoice is issued. Invoices for small amounts are “easier” than invoices for larger amounts. This simplification consists in the fact that they need to contain less legal information. The legal basis is § 33 UStDV. However, simplified invoicing for small amounts is not a must. Every entrepreneur is free to write ordinary invoices, even for small amounts, that contain all statutory invoice components.
From gross to netAs already said, a small amount invoice is a maximum of 250 euros gross. But what does that mean for the net amount and VAT? You can read off the respective maximum amounts from the following table:
|Gross (euro)||tax rate||Net (euro)||Tax amount (euros)|
Requirements for the small amount invoiceBasically, a small value invoice is an invoice like any other. There are no special rules for them, only simplifications. They do not have to contain all invoice features. This makes work easier for the biller.
Necessary informationThe following information is mandatory on a small amount invoice:
- Full name and address of the biller
- Invoicing date
- Type and scope of the service provided or items supplied
- Gross price / fee including VAT
- VAT rate; alternatively reference to the tax exemption (small business owners)
Watch out, trapOne can only advise billers to provide all invoices up to the 250 euro limit with the absolute mandatory information for small amount invoices (see § 33 UStDV). An empty recipient field means that the recipient will not have any problems with the input tax deduction. However, if you name a recipient, incorrect or incorrect information can prevent input tax deduction. The tax authorities justify this with the fact that the invoice does not comply with the provisions for small amount invoices. In spite of everything, some invoices still have to contain further information. The classic example is the hospitality bill. Of course, the occasion of the hospitality as well as the guests have to be noted on it.
Meaning of the small amount regulationThe small amount regulation makes it easier to deduct input tax in many everyday transactions. According to the Value Added Tax Act, a recipient of goods or services usually has to present an invoice to the tax office that contains all of the statutory invoice components in order to be able to claim the sales tax. However, sales tax from a small amount invoice can also be deducted if no service recipient is specified and the sales tax is not shown separately. This is much less bureaucratic and easier for the issuer and recipient of the invoice.
ExceptionsForeign transactions are excluded from the small amount invoice, even if they do not exceed the gross limit of 250 euros. This includes
The trick with the scanInvoices must be archived for a retention period of ten years. Have you ever tried to decipher a fax on thermal paper after a few months of "idle time"? Or a receipt printed in poor ink? Such documents become illegible faster than the tax office would like. Therefore, you should always scan or photograph every paper receipt upon receipt. Such receipt images can be uploaded to modern accounting programs and safely stored in a document management system (DMS). Some of these useful apps can even automatically recognize the receipt images. This means that you can find the receipts more quickly and your tax advisor can automatically transfer the information to his accounting department.
ConclusionA small amount invoice is an invoice for a maximum of 250 euros gross. It has to contain less information than an ordinary invoice. In particular, no invoice recipient needs to be specified. This makes invoicing easier for the supplier and the input tax deduction for the customer. The small amount regulation does not apply to cross-border transactions.
Dorothea Heymann-Reder writes blog posts, advice articles and white papers. Her specialist articles deal with commercial and business issues as well as the entire spectrum of digitization.
Get to know the advantages of Scopevisio's online accounting software!
Your non-binding entry into the Scopevisio world
Test now, decide later!
Take off into the cloud
Test the Scopevisio cloud enterprise software for 30 days free of charge. Non-binding, without any restrictions!
Try it free for 30 days
Can we help you?
Request information material
Do you have any further questions that you would like us to answer? We will put together your individual information package according to your requirements.
Arrange an online demo
Would you like to find out more about software from the cloud? We answer your questions and show you the advantages of working with Scopevisio.
Request a callback
Do you have any questions or would you simply like some advice? Make an appointment to call you back. Our experts will be happy to help you personally.
- Who is your favorite Asian YouTuber
- Why is hummus bad for you
- Why is there clamshell packaging
- Why does love deceive us?
- What are some facts about the Anasazi
- What are bon mots
- Why do sovereign debt defaults cause inflation
- What is cocktail clothes for children
- Who's in the band The Pixies
- What a bird has teeth
- Are MAC addresses free
- What a mistake that means
- How successful is commercial aquaponics in India
- Mating is necessary for the German Shepherd Dog
- A charge is always received
- Why is my AdSense earnings low?
- How do I find a travel companion
- What are potentially negative for the geoengineering climate
- Is who I am grammatically correct
- Is that pure Labrador puppy 1
- What is your favorite computer icon
- Frankincense and myrrh are the same
- How would a sea-leading city be built
- What is E1 2 in the HCL hierarchy