Every assignment handled by a self-employed professional requires its own invoice. Invoices should be issued in sequence, clearly showing the issue number and the date. They must also include the freelancer’s details and the client’s information, along with a precise description of the work performed. This level of detail helps the Tax Office understand the nature of the business and verify that the correct taxes have been paid.
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The service fee stands as a core element on any invoice. Beyond listing the hourly rate for the self-employed work, it is essential to account for applicable value-added tax, often referred to as VAT, which can be set at different rates depending on the activity. In many jurisdictions, this might translate into a standard rate around 21 percent or a reduced rate such as 10 percent for specific services. In addition, the invoice should reflect any personal income tax obligations and verify that funds are received into a dedicated self-employed account used for business transactions.
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Every three months, self-employed professionals submit VAT declarations using the appropriate form. These declarations summarize all invoices issued within the period. Failure to comply with this obligation can result in penalties. Keeping accurate records ensures clarity for the tax authority and helps avoid unnecessary fines or disputes.
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Regular invoice review is a practical habit for maintaining a solid relationship with the tax authority and staying out of legal trouble. Self-employed individuals should be thorough and well organized, meeting all tax duties promptly. Strong financial management supports business success, and disciplined control of invoicing is a key element in that framework.