Invoicing and  Archiving

Invoicing and Archiving PowerPoint PPT Presentation

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2. Overview. The issuing of invoices (including self-billing)Electronic invoicingArchiving of invoices. 3. The issuing of invoices. Obligation to issue an invoice: Supplies of goods and services to and payments on account by:taxable persons and non-taxable legal persons Supplies (to a.o

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Invoicing and Archiving

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1. Invoicing and Archiving

2. 2 Overview The issuing of invoices (including self-billing) Electronic invoicing Archiving of invoices

3. 3 The issuing of invoices Obligation to issue an invoice: Supplies of goods and services to and payments on account by: taxable persons and non-taxable legal persons Supplies (to a.o. non-taxable private individuals): distance sales intra-Community supply of a new means of transport intra-Community supply of an excise product = limitative list

4. 4 The issuing of invoices OPTIONS FOR MEMBER STATES For transactions situated within their territory: Obligation to issue an invoice for other transactions No obligation to issue an invoice for exempt transactions Time of issuance of invoices

5. 5 The issuing of invoices REGULAR INVOICING = invoice issued by the supplier SELF-BILLING = invoicing done by the customer: Prior agreement between parties Procedure for the acceptance of each invoice by the supplier/service provider OUTSOURCING = invoice issued by a third party in name and for the account of one of the parties of a transaction

6. 6 The issuing of invoices Every person registered under art. 10 who makes a supply, other than an exempt without credit supply, to another person who identifies himself for the purpose of that supply by means of a value added tax identification number shall provide that other person a tax invoice within thirty-one days from the earlier of: the date when the goods are delivered or the services are performed; the date on which a payment for that supply is received.

7. 7 The issuing of invoices When there is an application, disposal, transport or use of goods for which no consideration is charged or paid but which is deemed in terms of the Second Schedule to be a supply made by a person for consideration, that person shall, if he is a person registered under article 10, issue a tax invoice in which he indicates himself both as the person who made the supply and as the person to whom the supply is made. Every taxable person shall issue a tax invoice within the time stated in sub-article (1) in respect of every distance sale made by him.

8. 8 The issuing of invoices Any taxable person or non-taxable legal person who makes any supply, other than a supply in respect of which a tax invoice is required to be issued in terms of article 50, shall provide to the person to whom the supply is made an invoice, receipt or other document which shall be issued in the form and in the manner and shall contain the particulars set out in the Thirteenth Schedule.

9. 9 The issuing of invoices (self-billing) Whereas, based on art. 50 (4) VAT Act, one could conclude that in Malta self-billing is only allowed if the supplier is registered under art. 10 VAT Act, it appears according to us that, based on item 10 Twelfth Schedule, self-billing could be more widely allowed as the condition that the supplier must be registered under art. 10 VAT Act is not mentioned In our opinion, this could mean a.o. that under the future Maltese VAT legislation cross-border self-billing (i.e. supplier and customer are not established in the same Member State) is allowed even if the supplier is not registered under art. 10 VAT Act

10. 10 The issuing of invoices (self-billing) The use of self-billing is subject to a (prior) approval by the Commissioner, except when the customer is the person liable for the tax on the supply concerned The future Maltese VAT legislation does not yet determine the conditions of the prior agreement and the acceptance procedure of the self-bills

11. 11 Electronic invoicing If accepted by the customer Invoices sent/made available by electronic means shall be accepted by all Member States (conditions on authenticity of origin and integrity of content): Advanced electronic signature qualified certificate secure-signature creation device EDI (Electronic Data Interchange) supported by an agreement (sufficient procedures) ! creation of summary statement on paper Other electronic invoicing methods Until the end of 2005: prior notification may be imposed (no license requirement)

12. 12 Electronic invoicing (AES) An electronic signature means data in electronic format which are attached to or logically associated with other electronic data and which serve as a method of authentication (of the message) An advanced electronic signature is an electronic signature that meets all of the four following requirements: The signature is uniquely linked to the signatory The signature is capable of identifying the signatory The signature is created using means that the signatory can maintain under his sole control The signature is linked to the data to which it relates in such a manner that any subsequent change of those data is detectable

13. 13 Electronic invoicing (AES) A qualified certificate is an electronic attestation, meeting specific requirements, which links signature-verification-data (such as codes or public cryptographic keys) to a person and confirms the identity of that person and which is issued by a certification-service-provider (who meets specific requirements) A secure signature-creation device is software or hardware, meeting specific requirements, used to implement unique data, such as codes or private cryptographic keys, which are used by the signatory to create an electronic signature

14. 14 Electronic invoicing (AES)

15. 15 Electronic invoicing (AES)

16. 16 Electronic invoicing (EDI) Electronic data interchange is the electronic transfer, from computer to computer, of commercial and administrative data using an agreed standard to structure an EDI message. An EDI message consists of a set of segments, structured using an agreed standard, prepared in a computer readable format and capable of being automatically and unambiguously processed. EDI message standards are essential to EDI. In the case where parties wish to use any of these other standards they have to reach an agreement on these and have to determine also all appropriate details and specifications. In practice EDI is often used for the bulk transfer of data (e.g. files, often containing hundreds of individual invoices) between trading partners who are known to each other.

17. 17 Electronic invoicing (EDI)

18. 18 Electronic invoicing (EDI)

19. 19 Electronic invoicing (other methods) Examples: Outsourcing of the invoicing process to a e-billing platform The putting at the disposal of the invoice on a secure website, whereby the customer can view (e.g. by using a PIN code) or download the invoice in an unalterable format The use of secured electronic statements of credit cards or corporate purchase cards issued by a credit or bankcard company (containing sufficient data to be considered as a sales invoice of the supplier) Sending invoices by e-mail (e.g. with an invoice in PDF-format as attachment) Inter-company invoicing by means of inter-company postings made in the accounts of the separate companies using the same ERP system (?)

20. 20 Electronic invoicing (other methods)

21. 21 Electronic invoicing (other methods) The following remark could be made: invoices are not to be considered as stand-alone documents. They are only one (be it important) element for determining the authenticity of a transaction In the frame of a transaction other elements support this authenticity (e.g. order forms, contracts, transport documents, payments, …) Therefore (even in the case of electronic invoicing without using technical means for guaranteeing security), authenticity of origin and the integrity of the content of an electronic invoicing can be proved by means of an audit trail consisting of various documents pointing into the same direction (i.e. using methods that are already used by internal and external auditors performing controls on the administration of transactions)

22. 22 Electronic invoicing (other methods)

23. 23 Electronic invoicing Invoices containing the details specified in item 2 (i.e. the obligatory contents of an invoice), and subject to the acceptance by the customer, may be sent by electronic means, provided that the authenticity of the origin and the integrity of the contents are guaranteed: as may be provided for by national legislation with regard to the use of electronic signatures, or as may be required and approved by the Commissioner.

24. 24 Archiving of invoices Principle : archiving possible at any place and on any medium Member States can impose conditions regarding: Place of storage Format of storage Member States can impose different rules for storage outside EU Member States can determine the storage period

25. 25 Archiving of invoices OPTIONS FOR MEMBER STATES Format of storage of incoming invoices (taxpayers established on their territory) and outgoing invoices (transactions situated on their territory): Storage in the original format in which information is transmitted: - paper cannot be digitised; - electronic invoices to be archived electronically Electronic invoices: storage of data that guarantee the authenticity of the origin and the integrity of the content of the invoices Storage of invoices received by non-taxable persons established on their territory

26. 26 Archiving of invoices OPTIONS FOR MEMBER STATES Place of storage: for taxpayers established on their territory Place of storage of invoices outside the Member State: requirement to communicate the place of storage Place of storage within the Member State: invoices not stored by electronic means that guarantee full on line access Storage period: determined by the Member State = No harmonisation Outgoing invoice: transactions located within their territory Incoming invoice: taxpayers established on their territory

27. 27 Archiving of invoices Every taxable person established in Malta shall keep full and proper records of all transactions carried out in the course or furtherance of his economic activity Every person who is liable to tax on any transaction or who identifies himself as a person registered under this Act for the purpose of any transaction shall keep full and proper records of any such transaction Every taxable person and every non-taxable legal person shall keep full and proper records of all intra-community acquisitions made by him

28. 28 Archiving of invoices The records referred to in sub-articles (1), (2) and (3) shall be kept and stored in such manner, contain such details and be supported by such information, documents and accounts as set out in the Eleventh Schedule and such records, information, documents and accounts shall be retained for a period of at least six years from the end of the year to which they relate, or such other period or periods as the Minister may, in special cases, by regulations prescribe The Commissioner may at any time within the period specified in sub-article (4) of this article request any person to produce the records, documents and accounts required to be kept by him in virtue of this article

29. 29 Archiving of invoices Every person registered under article 10 shall keep the following records and documents: proper accounts and records of his economic activity a value added tax account an annual value added tax account copies of all tax invoices issued by him all tax invoices received by him documentation relating to customs and, where applicable, excise procedures with respect to importation and exportation of goods by him

30. 30 Archiving of invoices Every person registered under article 10 shall keep the following records and documents: copies of all fiscal receipts issued by him in terms of the Thirteenth Schedule to this Act all credit notes, debit notes and other documents issued by him or received by him which evidence an increase or a decrease in the consideration for any supplies, intra-community acquisitions or importations a register of non-transfers a record of movable tangible goods transported to him from another Member State by or on behalf of a taxable person identified for purposes of value added tax in that other State for the purpose of the valuation of or works on those goods

31. 31 Communication of information A person to whom any tax invoice or other invoice, receipt or document is provided as required by article 50 or 51 shall, if so requested in accordance with the other provisions of this Act, produce the said invoice, receipt or other document to the Commissioner or to any officer authorised by the Commissioner

32. 32 Communication of information Every person to whom a fiscal receipt is issued shall retain the receipt in his possession for a period of twenty-four hours and shall, upon a request made during the said time by the Commissioner or any officer authorised by the Commissioner, produce the said receipt to the Commissioner or such authorised officer

33. 33 Archiving of invoices

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