Have you ever received an invoice request from a customer? It is a frequent occurrence for Shopify stores. A receipt will be sent out automatically by your Shopify store with every purchase. The receipt details cover what was bought, who engaged in the transaction, when it happened, and how it was paid. Most of your customers will require an utterly compliant invoice with a little more information instead of a receipt.
Instead of delegating these requests to your customer service staff on a case-by-case basis, you might make invoicing a regular part of all purchases. Let's look at why this is a brilliant idea and what you should be aware of.
The benefits of invoicing
Let's begin by looking at the particular commercial advantages of invoicing your consumers.
Each entrepreneur wishes their company was more productive. You'll have less follow-up and back-and-forth with your customers when they request invoices if you make international compliance invoicing a regular part of the purchase process. Furthermore, our invoice templates ensure that all of your invoices include the same information in the exact locations. Instead of having a mix of bills and data, this enhances your business's record-keeping, providing a way to remain organized and produce invoices that meet a high standard.
Abide by legal requirements
We'll go over this in more detail later, but following international regulatory standards is essential for online merchants who wish to sell to a worldwide audience. This necessitates legal compliance in both your operating location and the regions where your clients are located. This is especially essential for B2B merchants that sell to businesses rather than individuals. Taxes and accounting are much more complicated for businesses when it is compared to individuals, and they are also likely to spend more money. Therefore invoices are essential.
Improve the customer experience
Customers are the essential aspect of your company. They determine whether you succeed or fail. Therefore every business must do all possible to offer a good client experience at every step of the purchasing process.
One approach to anticipate consumers' requirements and prevent a potentially unpleasant encounter is to eliminate post-purchase back-and-forth between the client and your support staff about billing. Also, please remember that if you don't correctly invoice foreign shipments, the destination country may erroneously estimate the package's worth, possibly costing the client extra in import taxes. No one likes to be surprised by expenses.
Strengthen your brand
When it comes to post-purchase communications, your brand consistency is just as essential as your interactions leading up to the sale – both need to be maintained to ensure customer satisfaction. Customer retention and word-of-mouth marketing begin to have an impact after the purchase.
Invoice listings allow you to create your unique branding opportunity to differentiate yourself from your rivals. Keep your logo, brand identity, and voice constant while also making an effort to include a call-to-action that directs your customers to join your customer loyalty program or use a promotional coupon during their next transaction.
The legal stuff
While it's essential to be on the right side of the law, understanding the rules and regulations that go into that is very critical.
The U.S., in particular, is known to have a looser invoicing and accounting regulation than other countries, including the EU and Australia. However, as the reach of technology and e-commerce grows, it is more crucial than ever to be aware of and follow foreign laws. Customers in certain countries must provide invoices to document their transactions for tax and accounting reasons properly.
International sales strategies are crucial for growing companies since they lead to more significant growth. According to Business.com, the United States doesn't even have the most significant buyer base - it's China instead. And 16% of all retail sales in China comes from e-commerce, while the UK gets 14.5% and the US gets 7.5%.
To help you with this, here are a few examples points to keep in mind while invoicing in various countries:
- Additionally, all UK invoices must include the phrase "Invoice" somewhere on them.
- Invoice requirements in the EU stipulate that they must include the "nature and kind of services" delivered.
- China compels businesses to pay tax on their future sales ahead of time. Compared to other nations, this invoice acts as a guarantee against tax avoidance, while invoices function as tax receipts in other countries.
- Australia considers an item "connected with Australia," and it imposes an import tax on it.
- For customers registered for GST in Singapore, invoices should be labeled "GST Invoice."
- Consequences of breaking the law include fines, payment delays, tax penalties, or commercial problems in that nation.
- Compliance is one less thing you have to worry about with Easy Invoice invoices, as they have already been implemented in over 80 countries.
What to put on your invoices
Since many countries have unique invoicing standards, it's beneficial to acquaint oneself with them. Bear in mind where you have the most extensive client base and focus on them. Email receipts do not cover all the requirements required by international regulations. Email receipts do not have the information required to be an accepted tax invoice. Using invoicing software that supports various accounting regulations is usually advised by accountants.
When following this checklist, you'll likely encounter the following needs:
- Your business name and address
- Unique invoice number
- Your tax ID (VAT or GST number)
- Customer name and billing address
- Payment details and terms
- Client's tax ID (VAT or GST number)
- List of items sold, including quantity, unit price, and total
- Tax rates per individual items
- A full breakdown of tax rates and tax amounts charged
- Total amounts exclusive and inclusive of tax
Looking to get invoices out that reflect your online store's growth? Shopify businesses can use Easy Invoice to generate and deliver attractive invoices without any coding experience.
You may generate international invoices using Easy Invoice, which includes all of the industry standards and branding. Automatically sending bills and allowing clients to download their invoices anytime they like is all you have to do to send invoices automatically.
If you'd want to get started on invoicing for your Shopify store, try Easy Invoice now by clicking here.