Autoentrepreneurs are obliged to invoice for their services. The invoice is a specific document that must meet certain conditions to be legally valid. Here's what you need to know about invoicing as a micro-entrepreneur.
When do I need an invoice?
In principle, micro-entrepreneurs, like all professionals, are required to issue their customers with an invoice for each sale or service rendered. However, there are some nuances to be aware of. Invoices are obligatory for business-to-business transactions, as they constitute legal proof and serve as accounting evidence.
When dealing with private individuals, invoices are only required in the case of distance selling, or if requested by the customer, regardless of the amount of the transaction. On the other hand, there are cases where an invoice is obligatory: + a service involving real estate work, with or without a sale + if the amount of the service is equal to or greater than 25 euros.
Note that a note is not an invoice. There are fewer compulsory details on a note.
Basic rules for invoicing your own business
When invoicing, there are a number of rules to be observed: + The document must be sent to the customer on the day of delivery of the product or performance of the service. The maximum delay allowed is 15 days. + Once issued, an invoice cannot be altered or cancelled by the self-employed entrepreneur. In the event of an error, a credit note must be issued for the same amount, and a new invoice must be issued with the correct information. However, if the customer makes changes, the autoentrepreneur can accept them. + The invoice must be drawn up in at least 2 copies: one given to the customer and the other kept by the autoentrepreneur as proof of sales. + A logical numbering system must be respected, with each invoice number unique and consecutive. In addition to these rules of good conduct, it's important to include a number of other essential details.
Mandatory information on an invoice
Company and customer identification
An invoice must include all the information needed to clearly identify the auto-entrepreneur, i.e.: + name and surname + address + business name (if applicable) + SIRET number + identification number in the Registre des Commerces et des Sociétés or Registre des Métiers (if applicable).
The customer must be identified by name, address and legal form in the case of a professional.
Listing of products or services sold
A precise list of the products or services sold must appear on the invoice. + The name of each item or service. + The quantity sold. + The quantity sold. + The unit price before tax and the total before tax for each batch of items. + Any discounts applied. These must be shown on the relevant line, or before the overall total in the case of a discount on the entire transaction.
Payment information
Transactions are governed by numerous rules, including payment deadlines. For the invoice to be legally valid in the event of a dispute, it must include: + the date of issue + the date of delivery or performance of the service + the expected date of payment + the penalty rate for late payment, if different from the legal rate. Note that this rate may not exceed three times the legal rate, and must be indicated in your general terms and conditions of use and sale. + discount conditions. If provided for in your GCU, discount conditions define a reduction for payment in advance of the due date. + the fixed amount set by decree for any unpaid invoice in a B2B relationship. "In the event of late payment, the legal fixed indemnity for collection costs is €40, article D.441-5 of the French Commercial Code.
It is also advisable to note the planned method of payment for the transaction, for example: + payment by cheque made payable to... + payment by bank transfer made payable to... IBAN...
Additional information
Depending on your situation, other compulsory information must appear on your invoice: + If you are a micro-entrepreneur in the building trade or a craftsman, you must take out decennial insurance. In this case, you must indicate the name and address of the insurer and guarantor on the invoice, as well as the geographical scope of coverage. + Whatever your activity, if you have taken out RC Pro (Professional Civil Liability) insurance, you must indicate the details of the insurer. + If you are a member of a Centre de Gestion Agréé (approved management center) for your bookkeeping, write "member of an approved association, payment by cheque is accepted" on the invoice.
Invoicing and VAT
VAT not applicable
Below certain thresholds, the invoice of a self-employed entrepreneur does not have to include VAT. For this reason, all invoices issued before the VAT exemption ceiling is reached must be marked: "TVA non applicable, art. 293 B du CGI" (VAT not applicable, art. 293 B of the General Tax Code ). The invoice total is therefore expressed exclusive of VAT, and the autoentrepreneur does not have to worry about taxes.
VAT no longer applicable
Since the beginning of 2018, the turnover ceilings for micro-enterprises have been raised to €70,000 for services and €170,000 for the sale of goods. However, the VAT exemption ceilings have not been raised and therefore remain at €33,200 and €82,800 respectively.
This means that if you exceed the VAT exemption threshold during the year, you will have to issue invoices with VAT. You must therefore remove the words "TVA non applicable, art. 293 B du CGI" and inform your local SIE (Service des Impôts des Entreprises) by registered or recorded delivery letter.
Note that if you exceed the VAT exemption threshold, you'll need to choose a VAT system: a simplified actual system with a single annual declaration, or an actual normal system with a quarterly or monthly declaration depending on your sales.
Invoicing is no mean feat, and embarking on it without mastering the various aspects can lead to mistakes with far-reaching consequences. You can avoid this by using a pre-established template, or by using Anytime's integratedinvoicing software, which meets all legal requirements.
