Invoice, accounting and archive: a glossary of data that makes a VAT process controllable

01

The glossary in four items

A VAT process is controllable when it brings together four data items: the mandatory details of each invoice required by Article 226, accounting detailed enough for the application and verification of the tax, copies of invoices archived and made available to authorities, and the data needed to complete the periodic return.

02

Why the directive requires it

Directive 2006/112/EC establishes the common VAT system in the European Union and requires every taxable person to keep detailed accounts, ensuring that the authenticity of origin, integrity of content and legibility of the invoice are guaranteed from issuance until the end of the archiving period, including through business controls that create a reliable audit trail.

03

The operational sequence, item by item

Steps

1. Complete each invoice with the details required by Article 226: identifiers of the parties, description of goods or services, date, taxable amount, rate and VAT amount.
2. Record the transaction in accounting detailed enough to support verification by the tax authority.
3. Archive copies of issued and received invoices in a location that remains accessible to authorities without delay.
4. Link each invoice to the underlying transaction through traceable business controls.
5. Include in the periodic return the data needed to determine the tax due and deductions.

04

A hypothetical case different from a self-billed invoice

Hypothetical example: a company supplies a service under the reverse-charge regime to a client established in another Member State. The invoice carries the wording required for reverse charge, the taxable amount by rate and the VAT amount, then the document is archived keeping it legible and intact for the entire archiving period.

05

Final checks on the document file

• Does the invoice carry all mandatory details required by Article 226?
• Is the accounting entry detailed enough to withstand a tax audit?
• Is the invoice copy archived and retrievable without delay?
• Are the authenticity and integrity of the document guaranteed for the entire archiving period?
• Is the transaction data consistent with what will go into the periodic return?

06

How to translate the glossary into software settings

Management software can be set up to collect, for each invoice, fields corresponding to the details in Article 226, assign clear roles to those who prepare, verify and archive the document, and maintain a trail linking the invoice to the underlying transaction. These are suggested operational choices to configure with your software partner, not specific features or legal obligations.

07

Frequently asked questions

Accounting must be detailed enough to allow the tax administration to apply and verify VAT; there is no fixed level, but it must support verification.

Electronic archiving is allowed and the taxable person may choose the location, provided documents remain accessible without delay to the competent authorities.

The audit trail between invoice and transaction can be built with internal business controls, as required to guarantee the authenticity and integrity of the document.

08

Next step

Check with your accounting team whether every issued invoice already includes all the details required by Article 226 and whether archiving ensures quick access for authorities upon request.