The auto-entrepreneur status is sought after by many people, as it includes some rather interesting advantages. This regime allows individuals, particularly the youth, to realize their entrepreneurial projects. However, even with the flexibility granted to an auto-entrepreneur, there are a number of legal provisions that must be respected, under penalty of facing criminal sanctions. One of these rules is the obligation to issue invoices. In this article, we will explain the reasons behind this imperative.
Supporting document in case of no profit
According to current law, an auto-entrepreneur is exempt from paying taxes when they do not make a profit from their activities. It is clear that you cannot benefit from this advantage if you cannot prove your lack of profit. The main element that can attest to your non-profit status is the invoice. Indeed, as a document detailing all your sales or services rendered (Amount billed to the client), all issued invoices allow for an accurate determination of the deficit or surplus situation of your auto-entrepreneurship.
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This situation will determine whether or not you need to pay taxes. Thus, you will easily understand the first reason that drives authorities to require auto-entrepreneurs to maintain invoicing. You can find a model invoice for auto-entrepreneurs that you can download for free and modify according to your needs on www.document-gratuit.fr.
Auto-entrepreneur: revenue thresholds not to exceed
One of the constraints related to the auto-entrepreneur regime is the limitation of revenue. The revenue limit for commercial activities is €82,800 excluding tax and €32,300 excluding tax for service provision, making it essential to maintain invoicing to estimate the revenue generated over time.
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Monthly or quarterly obligation to make declarations
Whether due to forgetfulness or not having the necessary documents to do so, failing to declare your revenue on time (monthly, quarterly), even if it is zero, is subject to penalties of €49 as well as other additional fees. In reality, the invoice remains a key document for making your declarations to avoid penalties. Therefore, it is crucial to be diligent in invoicing.
The invoice as a contractual document between the auto-entrepreneur and their client
Considering the current legislation, every issued invoice must include a set of information defined by the general tax code. Here are some reasons that explain why it is in your best interest to invoice your clients.
The mandatory information allows, among other things, to identify the contracting parties. By referring to your invoices, you can compile a list of your client portfolio.
In addition to this aspect, your invoice can include the payment deadline as well as the discount conditions. This way, you ensure a guarantee of receiving timely payment of the amount owed to you. You also define, alongside this deadline, the penalty rate in case of late payment. It serves as a deterrent that encourages the client to pay you on time.