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New invoice element under the Enforcement Act

Tax Alert, October 2014

Amendments to the Enforcement Act (Official Gazette 112/12, 25/13, 93/14) entered into force on 1 September 2014. Among other provisions, these amendments define an additional invoice element, which has to be indicated on invoices issued to private individuals who do not carry out a registered business activity.

Invoice as a credible document for enforcement procedure

Under section 31 (3) of the Enforcement Act, for an invoice is to be considered valid for the enforcement procedure, it has to include a notice to the debtor that, if payments due are not met, the creditor can initiate enforcement against the debtor based on a credible document.

In addition to other enforcement documents defined in section 31 (1), an invoice issued to a private individual who does not carry out a registered business activity, can also serve as a credible enforcement document, if it includes the following elements:

  • Information about the creditor and the debtor
  • Information on the subject, type, scope and deadline for meeting the liability
  • Indication that the creditor can require the enforcement against the debtor based on a credible document.

The new invoice element, i.e. the indication that the creditor can require enforcement, is crucial when the enforcement procedure occurs. However, it is possible to carry out the enforcement procedure even if the new element is not indicated on the invoice, but in that case the court would have to determine that the invoice is a credible document and as such suitable for the implementation of the enforcement procedure.

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