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Invoice, bill and statement of work performed in Russia – do they always have to be combined?

12.12.2023
Invoice, bill and statement of work performed in Russia – do they always have to be combined?

In the world of commerce, the accuracy and legality of documentation is of paramount importance. This is especially true in Russia, where the invoice, bill and statement of work are key elements of doing business. But do you know when it is necessary to submit all of these documents together, and when you can do so with some of them? Our article reveals the nuances of these important documents, explains their role and importance in different business situations, and provides valuable tips to help you avoid mistakes in your workflow.

Features of invoices in business transactions

In the business world, documentation plays a key role. In Russia, the invoice, the bill and the statement of work performed are the main documents accompanying business transactions. However, it is not always clear when exactly a full set of these documents is required. In this article, we will look at when all three documents are required and when a partial set can be used.

The invoice is the document that serves as the basis for charging value added tax (VAT). It contains details of the seller, the buyer, the goods or services and the amount of VAT. An invoice is required for most commercial transactions and is an important element of tax accounting.

Importance and functions of the invoice and statement of work performed

An invoice and a statement of work performed, although similar in purpose, have important differences. An invoice is a commercial document that not only confirms that a transaction has taken place, but also represents an obligation to pay on the part of the purchaser. It contains detailed information about the goods or services, their cost and payment terms. This document is important for financial planning and business cash flow control.

The declaration of work, on the other hand, is evidence of the provision of services or the performance of work. This document is most commonly used in the service and construction sectors, where formal proof of the completion of specific tasks or projects is required. The certificate contains a description of the work performed, the time of completion and the signatures of both parties confirming receipt of the work.

Both of these documents are legally binding and play a key role in confirming that the parties have fulfilled their obligations. They form the basis for settlements and can be used as evidence in legal proceedings.

Situations where a complete set of documents is required

In most cases, especially where large deliveries of goods or the provision of services for significant amounts are involved, a set of documents is required. This provides legal protection for both the supplier and the purchaser and also helps with proper accounting. The importance of a complete set of documents is particularly important in situations where transactions are subject to strict tax scrutiny, which requires accurate and detailed documentation of all aspects of a commercial transaction. The availability of a complete set of documents also helps in the event of disputes between parties, as each document serves as legal confirmation of certain aspects of the transaction.

Overall, a complete set of documents is not only a legal requirement, but also an important element of corporate culture and good business conduct. It ensures transparency and accountability in business relationships, which helps build trust between business partners.

Exceptions to the rules: when you can do without a complete set of documents

There are situations where a full set of documents is not required. For example, in the case of small retail sales or certain VAT-exempt activities. In such cases, the rules allow for a simplified paperwork procedure.

Understanding when a full set of documents is required and when you can settle for some of them is crucial for doing business in Russia. This not only enables you to comply with the law, but also ensures transparency and security in business transactions. Every entrepreneur should be aware of these aspects to avoid legal and tax problems in the future.

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