An export invoice is a commercial document issued by a seller when selling goods or services outside the country. It is the basic export document that confirms the international transaction and specifies the terms of sale, including prices, quantities, and product specifications. The export invoice is necessary for customs clearance and tax settlement in both the exporter’s and importer’s countries. A properly issued export invoice avoids problems with customs authorities and ensures tax compliance.
The difference between an export invoice and a European invoice
An export invoice is different from a European invoice, which is used for trade within the European Union. The European invoice, also known as an intra-community invoice, is used for transactions between EU member countries. The main differences between the two types of invoices are:
- Taxes and duties: an export invoice usually does not include VAT, because the exported goods are exempt from this tax. In the case of European invoices, VAT is settled according to the regulations of the buyer's country.
- Customs clearance: an export invoice is required for customs clearance, which differs from European invoices.
- Information on the invoice: The export invoice must contain more detailed information, such as the EORI (Economic Operators Registration and Identification) number, the tariff code, and the terms of delivery according to Incoterms.
How to issue an export invoice
Issuing an export invoice requires diligence and compliance. Here are the steps to take:
- Gather the necessary information: make sure you have all the details of the transaction, including full details of the buyer, description of the goods, quantity, unit price, total order value, terms of delivery (Incoterms), and country of origin of the goods.
- Apply the appropriate tax rates: for exports, goods are usually exempt from VAT, but this should be clearly stated on the invoice.
- Add the necessary codes and numbers: Enter the EORI number, customs tariff code, and other numbers required by customs law.
- Complete the invoice in English: since the export invoice will be used abroad, it is a good idea to draft it in English to avoid misunderstandings.
- Check compliance with the regulations of the importer's country: make sure the invoice meets the legal requirements of the country to which you are exporting goods.
Exporting goods and VAT
When exporting goods outside the European Union, these transactions are exempt from VAT. To take advantage of this exemption, it is necessary to meet certain conditions and have the appropriate documents to confirm the export of goods. The most important documents include:
- Export invoice: it must be appropriately filled out and contain information about VAT exemption.
- Transport documents, such as a bill of lading or proof of parcel shipment, confirm that the goods have left the country.
- Export declaration SAD (Single Administrative Document): This is a customs document necessary for customs clearance of goods exported outside the EU.
Summary
An export invoice is a crucial document in international trade that differs from a European invoice in terms of taxes, customs clearance, and required information. Issuing such an invoice requires diligence and compliance with the laws of both the exporter’s and importer’s countries. Goods exported are exempt from VAT, which requires the appropriate documents to confirm the export. With a properly drafted export invoice, businesses can avoid problems with customs and tax authorities, which is crucial for smooth international transactions.
