Describe the actual service
The invoice label may be too general. Explain what the company received, how it is used and what confirms delivery. A subscription, licence and consultancy service may require different assessments.
Bring the documents together
Review is more efficient when the agreement, invoice and payment can be reconciled.
- ✓Agreement or service terms
- ✓Invoice and relevant service period
- ✓Acceptance, delivery or access records
- ✓Payment details
- ✓Supplier details and country
Review both company status and the transaction
The supplier’s country and the purchaser’s VAT status are not the only relevant factors. Treatment is determined after examining the service and applicable rules. Do not infer a tax obligation from the invoice currency alone.
Set a process for recurring invoices
After the initial assessment, record how similar invoices will be collected and checked. Review the position again if the service, agreement or legislation changes.
Sources and references
This guide provides general orientation. A transaction’s treatment is established after reviewing its records and applicable rules.