There are several types of billing documents with which a business must be familiar. The deposit invoice, debit invoice, and credit note are among them. This article discusses the main characteristics of the debit invoice, which is issued by a company following a sale or service provision—it indicates the amount that the customer must pay to the supplier. Learn about the mandatory information, the retention period, and how the debit invoice differs from the credit note.

What’s in this article?

• What is a debit invoice?
  
• What is the difference between a debit and a credit note?
  
• When to issue a debit invoice
  
• What are the mandatory details on a debit invoice?
  
• What is the retention period for a debit invoice?
  

What is a debit invoice?

A debit invoice (also called a standard invoice or, just simply, invoice) is an official document confirming the execution of a commercial transaction between a seller and their buyer. It states the amount the customer owes to the company and the specific details of the transaction (such as the terms of sale).

Once the company issues a debit invoice, it cannot be modified. This ensures the continuous and chronological order of the company’s invoice numbers. Therefore, each debit invoice generated and recorded impacts the company’s accounting by increasing the revenue anticipated by the seller.

What is the difference between a debit and a credit note?

Since a debit invoice cannot be deleted or modified after it has been issued, the seller must issue a credit note or memo to correct it. This enables the seller to draft a new, updated invoice while keeping a transaction record. It is often used in the context of a return of goods or a billing error (such as an overpayment) to justify a full or partial refund to the customer.

While the credit note acknowledges the company’s debt to its customer, the debit invoice makes the customer liable to the supplier for a certain sum. Thus, the creditor and the debtor are reversed.

When to issue a debit invoice

In France, issuing a debit invoice is required in specific cases:

• In a transaction between two professionals, called business-to-business (B2B)
  
• At the request of an individual customer if they wish to receive documentation of the transaction
  
• In the context of a distance sale
  
• During an intracommunity delivery that is not liable for value-added tax (VAT)
  
• When a service exceeds €25, including all taxes (TTC)
  

The debit invoice must be provided upon delivery of the goods or completion of a service.

What are the mandatory details on a debit invoice?

Invoicing is a process that is highly regulated by law. Hence, it is mandatory for every debit invoice to contain the following:

• The word “invoice,” invoice number, and its issue date
  
• The seller’s identity: their first and last name or company name, their SIREN or SIRET number, the legal form of the entity, the amount of share capital, their RCS number if they are a merchant or their RM number if they are a craftsman and the address of the registered office
  
• The customer’s identity: their first and last name or company name and their billing and delivery address (if they are different)
  
• VAT numbers of the taxable entities
  
• The purchase order number (if applicable)
  
• Date of sale or performance of the service
  
• A detailed description and breakdown of each item sold or service given the unit, quantity, nature, brand, reference, materials provided, and labor
  
• The unit price, excluding tax (HT) on each item or service
  
• Any increases, such as delivery or travel costs (if applicable)
  
• Any discounts
  
• Total amount, excluding tax
  
• The VAT rate applicable to each item, or the mention of “VAT not applicable, Art. 293 B of the General Tax Code” for nontaxable entities
  
• VAT amount
  
• The amount, including all taxes
  
• The date and terms of payment (as well as the due date)
  
• The late payment penalty rate in the event of nonpayment by the due date
  
• The amount of the fixed compensation for recovery costs
  

The mandatory information for an auto-entrepreneur invoice is similar, with a few variations.

Example of a debit invoice

The French administration offers an invoice template on its website to help businesses write a compliant debit invoice. You can also opt for an invoicing system such as Stripe Invoicing, which enhances your accounting process from end to end. Stripe lets you customize your invoices, automate your revenue accounting, and speed up payment settlement.

What is the retention period for a debit invoice?

The debit invoice is an integral document for calculating the company’s annual turnover and the taxes payable to the State during each accounting period. Accordingly, each one issued must be kept for at least 10 years.