Simpler rules on using VAT e-invoices are good news for Shropshire businesses and could bring real cost savings.
Adrian Key from Dyke Yaxley Chartered Accountants, in Shrewsbury, said previously many small companies had been reluctant to use e-invoices, particularly if they were trading in Europe.
“This is because EU legislation initially allowed individual member states to impose their own rules on VAT e-invoices, often making them more trouble than they were worth.
“But now the rules have changed, and individual member states can no longer place their own requirements on VAT e-invoices or decide whether they are legally enforceable.
“This is great news for local businesses and hopefully should encourage more companies to introduce an electronic VAT invoicing system which will save both time and money.”
Adrian said there were some conditions that needed to be met if companies were to go ahead and introduce the new approach.
“Your customers will need to agree to using an e-invoice, and your company must be able to prove the document has not been altered so issue it as a PDF or through an automated system.
“And each e-invoice will need to contain all the correct VAT information in order to comply with the new rules.
“Obviously e-invoicing can help your company save on postage and stationery costs, and give you an almost instant delivery system.
“It will also reduce the amount of time spent on invoicing, which research has shown in an average company can take up to 25 employee hours per week.”
Dyke Yaxley’s Adrian Key