Complete Guide to Electronic Invoicing Codes: Overview and Usage
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The Revolution of Electronic Invoicing
Starting in 2024, electronic invoicing will become mandatory for all flat-rate taxpayers, fundamentally changing how businesses manage their financial transactions.
At the heart of this system are electronic invoicing codes, which are key elements for the proper issuance and transmission of fiscal documents as well as for identifying transactions.
These codes not only streamline the invoicing process but also significantly impact tax compliance.
It’s essential to understand them, especially as online invoicing platforms assist by “pre-filling” documents.
Here’s what you need to know, along with the latest regulatory updates.
Electronic Invoicing Codes: A Comprehensive Guide
What Are Electronic Invoicing Codes?
Electronic invoicing codes are vital for correct digital fiscal document issuance and transmission.
When preparing the XML file for an electronic invoice, it is crucial to accurately identify the tax regime of the issuer and the nature of the transaction.
For instance, the RF01 code indicates the standard VAT regime, while the N6 code is used for reverse charge transactions.
The codes encompass various categories, including:
- Document Type Codes (TD): Identify the type of fiscal document, such as TD01 for ordinary invoices or TD07 for simplified invoices.
- VAT Nature Codes (N): Specify the nature of transactions exempt from VAT, with codes like N1 for excluded operations or N3 for non-taxable operations.
- Recipient Codes: Seven-character sequences indicating where documents should be sent.
Document Type Codes and Latest Updates
Document Type Codes are crucial for identifying the type of fiscal document in electronic invoicing.
The Revenue Agency has introduced new codes to enhance system accuracy and efficiency.
Below is a summary table of the main codes.
| Code | Description |
|---|---|
| TD01 | Invoice |
| TD02 | Advance on invoice |
| TD04 | Credit Note |
| TD06 | Bill |
| TD20 | Self-invoice for corrections |
The newly introduced TD codes have been designed to more accurately manage reverse charge operations, ensuring correct VAT application.
VAT Nature Codes: Complete Table
VAT Nature Codes are essential in electronic invoicing, indicating why VAT is not applied in certain transactions.
Below is a table of main VAT Nature Codes and their meanings.
| Code | Description |
|---|---|
| N1 | Exempt Operations |
| N2.1 | Not subject due to territoriality |
| N3.1 | Non-taxable exports |
Updated Withholding Codes: Insights and Applications
Withholding codes are crucial for correctly identifying the type of withholding applied on invoices, with examples including RT01 and RT02 for various tax categories.
Correct usage ensures compliance and smooth transactions.
Additional Codes: Unique and Recipient Codes
Unique codes and recipient codes are also critical in electronic invoicing.
The unique code, made up of six characters, is specifically for invoices to public administration, ensuring correct delivery.
In contrast, the recipient code consists of seven characters, facilitating invoice exchanges between private entities.
Choosing the correct code is vital to avoid complications with the Tax Agency.
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