+7 495 797-10-99

Invoicing

The invoicing procedure in Russia is different than in most countries. There are several types of invoices

Proforma invoice

Usually, when someone in Russia tells you an invoice, it means a so-called proforma invoice. This document contains payment details, information about goods, services, quantity, and amount. It also includes information on VAT, depending on the company tax system or in case of any exemptions from VAT.

A Proforma invoice can be in any format; it is not a form prescribed by legislation. The company may develop its own proforma invoice template or use ready templates using accounting software.

If the parties have entered into an agreement specifying the terms of payment (term, payment details, payment amount), then it is unnecessary to issue a proforma invoice. The counterparty can pay based on the agreement. However, contracts often include a provision for payment based on proforma invoices. In this case, the company needs to issue a proforma invoice. Generally, in Russia, invoices are widely used in the business environment. However, the proforma invoice is not a primary accounting document. It is not possible to make accounting records based only on proforma invoices.

Usually, a proforma invoice is issued in one copy and sent by email or on paper to the Customer. It is not necessary to keep the originals of proforma invoices.

Delivery note

A delivery note is used for sales of goods. Based on the delivery note, the Seller writes off the goods sold, and the Buyer records the purchase. The delivery note is used for both accounting and tax purposes. Like the Act, a company can develop its delivery note form, but it must contain obligatory details. Most companies in Russia use a unied form of delivery note TORG-12.

Act of Service (Work) Provision

The Act confirms that the Contractor has fullled its obligations to the Customer. The Act records that the ordered services or work were performed on time and in proper quality.

The Act of Provision of Services (Works) does not have an approved unied form. Each company has the right to develop its form, but based on requirements prescribed by Federal Law 402-FZ On Accounting and the Russian Tax Code.

Mandatory details are

name of the document;
date of document preparation;
name of the organization on behalf of which the document was drawn up;
content of the fact of business transaction;
physical or monetary measurement;
the names of the employees responsible for executing the business transaction, its registration, and their personal signatures

Any extra details the company may add to the form without any restrictions.

If the document does not indicate all the required details, the accountant cannot accept the Act for accounting and tax records.

The Act is issued in two copies, one for the Contractor and another for the Customer. Legislation prescribes to keep originals. It is also possible to send the Act electronically via the E-documents flow system.

The Act is issued in two copies, one for the Contractor and another for the Customer. Legislation prescribes to keep originals. It is also possible to send the Act electronically via the E-documents flow system.

VAT invoice

All companies use a standard tax system to issue VAT invoices (schet faktura).

A VAT invoice is the document based on which the Buyer accepts for deduction the input VAT presented to him by the Seller of goods (works, services). VAT invoices can be issued on paper or via the E-documents flow system. All VAT invoices are registered in the Purchase book by the Buyer and the Sales book by the Seller. Purchase and Sales books are part of the quarterly VAT tax return. VAT invoice has a strict form and is approved by the Russian Government.

The company does not have the right to use its own form or somehow modify the elds in the VAT invoice. The company can add information only if it does not violate the structure and fields of the form.

Universal transfer document (UPD)

This document mixes the VAT invoice and Delivery note or Act. The company may use one UPD instead of two VAT invoices and Delivery notes (or Act).
UPD has no unified form but only a recommended form. So, the company may use its form but strictly follow the requirements of obligatory details for VAT invoices and Delivery notes (Act).

UPD is a rather cumbersome and inconvenient form; not all companies use it in their document flow. Each company prescribes in its accounting policies what forms of documents it uses in its business document flow.

Do you need an expert advice?

Call back

Ask questions and make an appointment by phone

+7 (495) 797-10-99