When it comes to invoicing requirements, deadlines by which invoice needs to be issued after the tax point vary across the globe and can range from a few hours to 15 days (most markets where there are no real-time transaction reporting requirements in place).
This means that in situations where a company has business clients to which it generates a high volume of transactions a month (eg. the company provides ride-sharing services to employees of their business clients who are all using their employers' tax information for billing purposes), it needs to issue, potentially, a high number of invoices to that client to keep compliant from a VAT/GST law point of view.
Issues here are that this is not ideal from a customer perspective, as their accounting would prefer to have summarized data on all the transactions that were generated towards them, as opposed to going through thousands of individual invoices and aggregating the data.
For this scenario, a summary invoice can be helpful. A summary invoice is a document generated on top of the invoices that need to be issued per individual transaction and serves the purpose of outlining the total amounts due for that client in a given time frame (total net amount charged, total discounts applied, total VAT/GST due, and total payable amount due).
This way, both the legal invoicing requirements are followed (all individual invoices can be attached in a zip file for audit purposes and for any references together with a summary invoice), and the customer experience for business clients is not sacrificed.
Through Fonoa’s Invoicing module, it is seamless to issue locally compliant invoices in 70+ markets, as well as summary invoices (where permitted) with 10K+ line items. This will make sure that your business customers’ accounting teams are satisfied, as well as that all the invoicing legal requirements are met.