5. How do you handle tax billing and multi-currency invoicing?

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

Tax billing depends on a number of criteria

Taxes vary according to the country of the customer being billed. They also vary according to the type of products or services invoiced.

For example, when a French company invoices a customer in another EU country, no VAT is charged. However, the invoice must include the following information:

- Amount before tax

- 0% VAT rate

- VAT reverse charge" statement

The project invoicing software you choose must make it easy to manage all these types of tax, so as to generate invoices that comply with the regulations of each country.

Multi-currency billing

Projects are often invoiced in foreign currencies. This raises two issues:

1. 1. The software must be able to bill in multiple currencies. When a project is created, the software must allow you to specify the currency in which the project is to be invoiced.
   2. Convert billing data to the right conversion rates for reliable reporting. Analyses must be performed in a single currency to provide the right level of information. Invoicing software must therefore take into account the rates of all currencies for 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 different between the two periods.

Stafiz can generate invoices in any currency. Each project can be invoiced in a specific currency, but a single project can be invoiced in several different currencies.

When the project is set up, the associated taxes are determined according to the services provided. This then enables taxes to be added automatically when invoices are generated.

In addition, reporting is calculated in a consolidation currency which converts all invoiced amounts at the correct rates according to the period of issue.

Discover invoicing with Stafiz

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

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

2. How to manage the risk of project overruns?

3. How can I get paid faster by my customers?

4. How to manage complex billing arrangements

5. How do you handle tax billing and multi-currency billing?

6. How to manage invoicing between different entities within the same company (inter-company flows)

7. How can we simplify communication with our customers?

8. How can I change certain parameters during the course of a project that will have an impact on invoicing?

9. How do I set up a project quotation and invoicing tool?

The 9 problems of project billing