With the current situation the world is finding itself in, many businesses have decided to take safety precautions and introduced measures to work remotely. This work dynamic brings up several issues in how the business will be communicating with their clients.
For obvious environmental and health reasons, businesses might opt for Electronic Invoices (“E-invoicing”) which minimises any risk from the traditional handover of invoices and allows them to continue with their day-to-day activities and maintain a good client relationship.
As per the local VAT Act, an E-Invoice must contain the same information as a traditional tax invoice, hence prominently but not exclusively the following:
- Date of invoice
- Unique Invoice Number
- Customer and Supplier Details including their VAT Registration Numbers were applicable
- The details of goods or services sold
- The amount excluding VAT
- VAT Amount
- Total Amount
- If no VAT is charged, include the relevant legislation
A major difference between a traditional invoice and an e-invoice is that the recipient of the good/service must choose to accept such document via electronic means. Also, each taxable person has to ensure the authenticity of the origin, the integrity of the content and the legibility of the invoice.
Additionally, for those businesses who transact with non-taxable persons (i.e. individuals or companies without the requirement of a VAT number), should ensure that their Point of Sale software is compliant with the Maltese VAT legislation by obtaining an Exemption (“EXO”) Number from the VAT department.
How Can We Help?
We would be happy to discuss any queries you may have relating to how to prepare an e-invoice and to carry out a system audit on the Point of Sale system you intend to utilise to obtain the necessary EXO Number.
Contact us today for more insights and support:
Karen Spiteri Bailey - Partner ([email protected])