What an invoice contains
Article 226 of the VAT Directive lists the details required on an invoice for VAT purposes. The main ones are:
- The date of issue
- A sequential number that uniquely identifies the invoice
- The supplier's VAT identification number, and in some cases the customer's
- The full name and address of the supplier and of the customer
- The quantity and nature of the goods, or the extent and nature of the services
- The taxable amount per rate, the unit price without VAT, the VAT rate and the VAT amount
How invoicing works in a payments product
An invoice is created from an order or a billing run and sent with a way to pay: a payment link, or bank details with a reference. A dedicated IBAN or a structured reference lets the incoming transfer be matched to the invoice automatically.
The invoice then moves through states: issued, paid, overdue, or corrected by a credit note. Each change is an entry in the ledger.
Electronic invoicing in the EU
Today the VAT Directive counts an invoice issued and received in any electronic format as an electronic invoice, and Article 232 makes its use subject to the recipient's acceptance.
Council Directive (EU) 2025/516 changes both with effect from 1 July 2030. An electronic invoice becomes one issued, transmitted and received in a structured format that allows automated processing, and invoices are to be issued that way, though Member States may still accept other formats for transactions outside the new digital reporting rules.
Invoice, receipt or credit note?
- Receipt
- Confirms that a payment was made. An invoice asks for one.
- Credit note
- Cancels or reduces an invoice already issued. The original is not edited.
- Pro forma invoice
- A preview sent before the supply, so that the customer can see what the invoice will say.
Where Invoicing shows up in a platform
Modules that do the work
- Accounts & IBANsCustomer accounts with their own IBANs, on the partner bank and the rails you choose.
- LedgerThe double-entry book of record behind every balance, fee and transfer.
- CheckoutA hosted checkout for cards, wallets, bank payments and crypto, routed to the best provider.
- NotificationsEmail, SMS, push and in-app messages in your brand, through the providers you choose.
Platforms that need it
Where it is written
The laws and standards this page's facts come from.
- Directive 2006/112/EC, the VAT Directive, consolidated: Articles 217, 226 and 232 (EUR-Lex)
- Council Directive (EU) 2025/516, VAT in the digital age, Article 5 (EUR-Lex)
General information, not legal advice: what applies to you depends on your services and your market.