Anyone who owns an activity has to deal with tedious bureaucratic and accounting. The latter, in particular, are essential to keep our business running smoothly and without quarrels which impact on their finances. For this reason, we often rely on experts in the field, able to recognize the various economic movements of the company. To avoid exorbitant fees and fees payable to the accountant, who hangs out a bit of double-entry bookkeeping and has a small business, you may also decide to independently manage the accounting aspect. The proposed guideline will clarify some aspects on how to bill advances received from customers.

The legislature provided that for each taxable transaction to be invoiced, and shall define the relevant time on accounting and tax: for the supply of goods properties, the moment that matters is that the contract is signed, though the supply of goods is deemed to be effected at the time of delivery or shipment of the same. The performance of services shall be regarded at the time of the payment.


Without the necessary premise, let’s say you sell a good or service and that our customers pay us in the form of a deferred payment. What happens in these cases? The receipt of payment must be settled by the issue of appropriate document. The scheme to be used is easily viewable on the most common software for accounting, the entry to look for is their “tax invoice”. Just fill out the individual voices properly and the computer does the rest. If we are in possession of a linked document (quote, order, DDT) we can generate the invoice starting with these.

If, for example, on the twentieth sell an asset at 100,000 Euros plus VAT 22% for a total of 122,000 Euros and we agree with the client for an advance payment of ¼ of the amount due, we will bill the advance on that amount and calculate VAT. Therefore, we issue an invoice which has the date of collection and that, as the amount of the advance and the related VAT.

Therefore, we must take into account the following factors: Built-twentieth of the advance on the Issue Date of the first invoice XY Taxable income: € 25,000 (€ 100.000:4) VAT: € 5,500 (€ 25.000×22%) Total invoice : € 30,500 (€ 25,000 + € 5,500).