In business transactions, it is common to come across invoices for various expenses, such as parking fees, tolls, or accommodation, that do not include buyer details. This raises the question – can such invoices be recorded in business accounts?
Legal Framework for Issuing Invoices
The issuance of invoices in Croatia is regulated by tax and accounting laws. According to the VAT Act, when an invoice is issued to another taxpayer or legal entity, it must include:
- The name and address of the buyer,
- The personal identification number (OIB) or VAT identification number,
- All other required elements prescribed by law.
For a business to claim input VAT deduction, the invoice must comply with legal requirements and be clearly linked to a taxable business activity.
Accounting Rules and Expense Recording
The Accounting Act stipulates that accounting documents must enable transparent tracking of business transactions. Any document used for bookkeeping must contain:
- A description of the transaction,
- Identification of the parties involved,
- Confirmation of the authenticity and completeness of the data.
Documentation must be precise and verifiable to ensure accurate business records.
What If the Invoice Does Not Include Buyer Information?
If an invoice does not contain buyer information, its recognition in business accounts depends on additional supporting documentation that can verify the expense. Such an invoice may be accepted if:
- It includes sufficient other details that establish its connection to the business,
- It can be linked to additional credible documents that confirm the expense’s purpose.
However, for input VAT deduction, the invoice must include all elements prescribed by the VAT Act.
Conclusion
Invoices that do not contain buyer information generally do not meet the requirements for proper bookkeeping and tax deductions. While exceptions exist, businesses are advised to request invoices with complete buyer details for every purchase to avoid potential issues with expense recording and tax compliance.
