Client Details
What is it
The name and address of the person or entity receiving the goods or services. It specifies who is liable for payment. It directs the document to the correct department.
When is it required
Always. An invoice must be addressed to a specific entity to be valid. Tax deduction is impossible without it.
Regional ID requirements
| Region | Requirement | Critical Note |
|---|---|---|
| EU (B2B) | Client VAT ID | Mandatory for Reverse Charge. Must be validated via VIES. |
| UK | Business Address | Full trading address required for VAT invoices. |
| Australia | Client ABN (Over $1000) | For invoices >$1000, recipient's identity/ABN is required for them to claim credits. |
| USA | Bill-to & Ship-to | Ship-to address often determines the specific Sales Tax rate. |
| India | Client GSTIN | Mandatory to pass Input Tax Credit to the buyer. |
B2B vs B2C
Business-to-Business (B2B): Requires strict adherence to legal details (VAT Ids, company names) for tax deduction.
Business-to-Consumer (B2C): Often simpler requirements. In many regions, simplified invoices (receipts) suffice for small amounts.
Common pitfalls
- Addressing it to an individual instead of the company. The employee might leave or not have payment authority.
- Using an incorrect or unregistered legal name. This prevents the client from booking the expense.
- Sending it to the wrong department or person. This results in the invoice getting lost in internal mail.
Common mistakes when filling the field
- Misspelling the client's name or address. This looks unprofessional and may cause rejection.
- Omitting the client's tax ID for cross-border trade. This triggers tax liabilities for the sender.
- Using a "care of" address unnecessarily. This complicates the legal relationship.
Why is it there
It identifies the debtor. It allows the client to claim the expense for tax deduction purposes. It ensures the debt is legally enforceable against the right party.