The invoice has legally defined elements, that is, in legal terms, a kind of “mandatory information”. However, this is only basic information, which usually needs to be supplemented with other information. These help with overall clarity and can be a good source of information for you and your client. What information is involved? Find out in this article. Finally, we’ll also give you some advice on what to do in the event of an unpaid invoice.
An invoice and a tax document are often the same thing. The terminology depends primarily on the purpose. We speak of an invoice when it is issued by a person who is not subject to VAT. Its primary function in this case is as a request for payment and as evidence of a sale (or provision of a service). An invoice can also be used for accounting purposes by both parties as evidence of income or expenditure.
An invoice becomes a tax document when it is issued by the VAT payer and serves as proof of payment of taxes. In this case, it must contain the same information as a traditional invoice, but it must also include information on the VAT rate or the price per unit of goods excluding VAT.
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The invoice has legally required elements such as basic information about the supplier and correct numbering. In addition, it should also contain other important information, such as a list of items and the deadline for payment. So let’s take a look at what not to forget in the invoice:
This is the basic identification of the person or company issuing the invoice. It must therefore contain the full name or the official name of the company as it is registered in the commercial register (e.g. Available Lawyer Ltd.).
The full address of the registered office of the person or company must be given here. The address should include the street, the descriptive number, the city and the postal code (V Jama 699/1, Prague 1 – Nové město, 110 00).
A personal identification number is a unique number assigned to a self-employed person for identification purposes in state and financial registers. It is necessary for legal transactions and communication with government institutions.
If you are self-employed, your invoice must include information about the register in which you are registered, i.e. the trade register. If you are a company, then you must have a statement that you are registered in the commercial register, including the section and insert.
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Each invoice should have a unique number or code to distinguish it from other invoices and help you with the overall organisation of your accounts. However, this marking is particularly important if you would be sending invoices to the tax office, for example.
For this reason, you need to have a clearly defined and follow-up system. The numbering system is not set by law, but the condition is that it must be clear and continuous. It is therefore a good idea to choose a number series that reflects the order of the invoice and the date of issue – e.g. 24042511. So in this numerical sequence we have the current date (25 April), the year (24) and the invoice serial number (11), which reflects the fact that we have issued ten invoices this year and this is the eleventh. You can renew the serial number every month, year or not at all. However, it is necessary to maintain continuity.
For larger companies, the invoice number also includes an indication of the type of invoice (most often FV for the invoice issued), the billing department (if the company has more than one department), the customer and other necessary information. In all cases, however, the serial number must not be missing.
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This should contain basic information about the person for whom the invoice is issued. That is, the name and surname or company name, registered office and registration number.
This should list all services or goods that are the subject of the invoice, including the name of the goods or services, quantity, unit price and total price. Each item should be clearly described so that there is no doubt as to what has been supplied.
The invoice should include a statement of the total amount and method of payment. So if you require payment on account, your account number should not be missing and, if applicable, the variable symbol to identify what the payment is. For example, you can use the invoice number as a variable symbol.
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This is the date you issued the invoice. If you are a VAT payer, then you must also remember the date of the taxable supply (DST). As a VAT payer, you should also remember that you are obliged to issue an invoice within 15 days of the supply of services or goods.
This is the date by which the customer has to pay you for the goods or services you have provided in the invoice. The due date of an invoice is set by law at a maximum of 30 days from the date of issue or 60 days if two companies are trading with each other.
However, you can set the invoice due date to an earlier period at your discretion. Traditionally, the due date is within 14 days. However, in the case of smaller businesses, payment due within 7 days is no exception. In any case, it is a good idea to agree on a shorter due date with the customer in advance.
The signature record is not intended for the invoice issuer. So you do not have to worry that an invoice issued by you is invalid without a signature. This part is for the customer or the person who does the billing for the customer.
Even if your invoice is error-free and contains a clearly stated due date with information on how to make payment, this is no guarantee that the customer will pay it. Just about every business has encountered a similar problem, including us at The Affordable Lawyer. So let’s take a look at how to proceed in this situation:
You can read more about what to do if you have an unpaid invoice and how to protect yourself in the future by taking precautions in our article.
Correct invoicing is crucial for smooth business operations and clear financial management. The invoice serves not only as a request for payment, but also as proof of sale for both parties. In the event that payment is delayed, it is essential to act quickly and efficiently. A polite warning, a pre-action notice and, in extreme cases, legal proceedings are steps that will help ensure that you do not lose your money. We are happy to help you with all the steps. We will conduct a careful analysis of your case and take care of preparing a pre-action notice, a lawsuit, an appeal or straight to representing you in court where we will vigorously enforce your rights.
We will enter the Commercial Register or arrange any changes for you. With us, you can be sure that the registration will go smoothly and on the first try. We act quickly, professionally and at upfront prices. You can only pay after the service has been provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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