5. How to take into account tax invoicing and multi-currency invoicing?

In this article, we explore how to present taxes in invoices: VAT or other types of taxes. Discover the links to all the articles in the file below:

Tax invoicing depends on many criteria

Taxes vary depending on the countries customers are being charged. It also varies depending on the types of products or services that are invoiced.

For example, when a French company invoices a customer in another country of the European Union, there is no VAT to apply. But the invoice must include the following information:

–    The amount excluding tax

–    The VAT rate at 0%

–    The mention “Self-liquidation of VAT”

The chosen project invoicing software must make it easy to manage all these types of taxes to generate invoices that comply with the regulations of each country.

Multi-currency billing

It is common for projects to be invoiced in foreign currencies. Two issues arise:

1. 1. The software must allow invoicing in multiple currencies . When creating the project, the software must allow you to indicate the currency in which the project should be invoiced.
   2. Convert billing data at the right conversion rates to provide reliable reporting . Analyzes must be carried out in a single currency so that they provide the right level of information. The invoicing software must therefore take into account the rates of all currencies over each period. Conversion rates vary from one period to another. For example, 1000 USD invoiced in January 2023 does not have the same value in EUR as 1000 USD invoiced in February 2023. The conversion rate is indeed different between the two periods.

Stafiz allows you to generate invoices in all currencies . Each project can be billed in a specified currency, but on the same project, it is possible to invoice in several different currencies .

When setting up the project, the associated taxes are determined based on the services. This then makes it possible to automate the addition of taxes when generating invoices.

Furthermore, the reports are calculated in a consolidation currency which converts all the amounts invoiced at the correct rates depending on the issue period.

Discover invoicing with Stafiz

The 9 problems of project invoicing and how Stafiz helps you solve them?

1. How to estimate costs, prices and billing type for a billable project?

2. How to manage the risks of project overruns ?

3. How to get paid faster by customers?

4. How to manage complex billing arrangements

5. How to take into account the invoicing of taxes? and multi-currency billing?

6. How to manage invoicing between different entities of the same company (interco flow)

7. How to simplify communication with customers?

8. How can certain parameters be modified during projects that will impact invoicing?

9. How to set up a project quote and invoicing tool?

The 9 problems of project invoicing