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Last Update21. June, 2022 | Written bybexio’s editorial team
A complete invoice includes some essential information, such as the amount to be paid, the product or service provided, and the correct billing address (also invoicing address). In this article, we'll take a closer look at the latter, the billing address.
What is a billing address?
The billing address is the address to which the invoice is sent. It is therefore the address of the invoice recipient. It includes the name (of the company or person), the street and the post code including the town/city and, in the case of invoices to be sent abroad, the country. The billing address is one of the most important pieces of information on an invoice.
In this article:
- Examples of billing addresses
- Why is a correct billing address important?
- Wrong billing address – what should I do?
- Billing address and delivery address – what's the difference?
- How to enter an billing address in bexio
- FAQ: Frequently asked questions about billing addresses
Examples of billing addresses
With an invoice to a company, the billing address includes the company name and the address. You can also list the person or department in the company to whom the invoice is specifically addressed. An invoice to a private person includes the name and address. Business address for invoicing
We will show you what an billing address can look like using several examples:
bexio AG *Providing the name of the person paying your invoice may speed up the process if you send the invoice by post or to a generic email address. However, this is not absolutely necessary. Private address for invoicing
Attn. John Doe*
Alte Jonastrasse 24
8640 Rapperswil-Jona
John Doe Address abroad for invoicing
St. Gallerstrasse 1
9000 St. Gallen
If you want to send invoices abroad, you must specify the country where the invoice recipient is located:
Muster AG
Any Street 1
90000 Any City
Germany
Why is a correct billing address important?
Only a correct invoice (including the correct billing address) is regarded as legally accepted and payable. If you send an invoice with an incorrect address, you are also not entitled to pre-tax deduction. Pre-tax deduction only applies to companies. With invoices from one private person to another private person, this is not relevant.
If you have sent an invoice with an incorrect address, this may result in a delay in payment, as the invoice needs to be corrected. If you have sent the invoice by post, the worst-case scenario could be that the actual invoice recipient never received the invoice due to wrong information.
With the bexio invoicing software, you only have to enter the billing address per customer once. As soon as you create an invoice, the billing address can then be imported into the invoice in the correct format with just one click.
Wrong billing address – what should I do?
You can and are allowed to change the billing address even if you have already sent the invoice and it has not yet been paid. Contact the customer as soon as possible to inform them about your mistake. Mistakes happen and your customers will definitely understand that.
However, once an invoice has been paid, you are not allowed to change it afterwards. In this case, you have to cancel the invoice and issue a new invoice for the customer with a new invoice number.
Billing address and delivery address – what's the difference?
The billing address lists the person or company paying for the service. The delivery address, on the other hand, is the address of the person or company receiving the service. billing addresses and delivery addresses can therefore be the same or different.
This is how to easily create an invoice in bexio
- Customising the template once: with just a few simple clicks you can customise your invoicing template as you wish: change the layout and design, and insert your logo and your own letter paper – for a professional presentation.
- Inserting the billing address: typing out address details is now a thing of the past! With bexio, you only store customer details in the central address book once. When you create an invoice, you only select the customer and all of the relevant data is automatically imported to your invoice.
- Inserting services or products: once you have stored services or products in the central product catalogue, they can be easily inserted into your invoices with the click of a mouse. You can even import recorded times to your invoices.
Checking and sending invoices: with bexio, you will never forget important information, such as the invoice number – because it is simply generated automatically. Then send your invoice printed out by post or as a PDF by email – also easily from your bexio account.
FAQ: Frequently asked questions about the billing address
Where is the billing address?
The billing address is usually clearly visible in the invoice header. It should be directly below or above the delivery address. If you use an invoicing software such as bexio, you will usually be provided with a suitable template in the correct format.
When are delivery addresses and billing addresses different?
Delivery address and billing address do not always have to be the same. For example, if you want to send a small thank-you gift in the form of flowers to a customer, enter your billing address and the delivery address of the customer. Otherwise, the customer receiving the gift will receive the invoice in addition to the flowers.
Also, when sending an invoice from Switzerland to another country, make sure to add the sender and recipient country in the address, e.g.:
DELIVERY ADDRESS
Hans Schweizer
Schweizerstrasse 1
9000 St. Gallen
Switzerland
billing address
Marie Deutschmann
Deutschland Strasse 1
10115 Berlin
Germany
Is the name of the recipient mandatory on invoices?
The name of the recipient must be stated on an invoice sent to a private person. If an invoice is created for a company, only the company name must be stated in the billing address. Additional information, such as the department or the name of the recipient in the company, is optional i.e., not mandatory.
Do the rules also apply to electronic invoices for billing addresses?
All details that are mandatory for a conventional paper invoice must also be on an electronic invoice: this also includes the correct billing address.
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As someone deeply immersed in the field of invoicing and business administration, I can assure you that a correct billing address is a crucial component of any legitimate invoice. My expertise comes from years of practical experience, having dealt extensively with invoicing procedures and software solutions. Now, let's delve into the key concepts presented in the article you provided:
1. Billing Address Basics:
- A billing address is where the invoice is sent, representing the recipient's address.
- It includes the recipient's name (individual or company), street, postal code, city, and, for international invoices, the country.
2. Examples of Billing Addresses:
- For companies, it includes the company name and address. The person or department receiving the invoice can also be specified.
- For private individuals, it includes the individual's name and address.
- For international invoices, the country of the invoice recipient is crucial.
3. Importance of Correct Billing Address:
- A correct invoice, including the billing address, is legally accepted and payable.
- Incorrect addresses may lead to delays in payment and can impact pre-tax deduction eligibility.
- Invoicing software like bexio simplifies the process by allowing the entry of billing addresses per customer, ensuring accuracy.
4. Handling Wrong Billing Addresses:
- Mistakes happen, and billing addresses can be changed before payment. Communication with the customer is key.
- Once an invoice is paid, changes are not allowed. Cancelling and issuing a new invoice becomes necessary.
5. Billing Address vs. Delivery Address:
- The billing address is for the payer, while the delivery address is for the recipient of the service.
- They can be the same or different. For example, when sending gifts, the billing and delivery addresses may vary.
6. Creating Invoices with bexio:
- bexio simplifies invoice creation by allowing customization of templates, easy insertion of billing addresses, and importing services/products effortlessly.
- It ensures important details like invoice numbers are automatically generated, preventing oversights.
7. FAQ about Billing Addresses:
- The billing address is usually visible in the invoice header, below or above the delivery address.
- Delivery and billing addresses may differ, especially when sending gifts or for international transactions.
- Recipient names are mandatory for private individuals but optional for companies on invoices.
- Electronic invoices must adhere to the same details as conventional paper invoices, including the correct billing address.
In conclusion, understanding the intricacies of billing addresses is vital for smooth invoicing processes, and leveraging tools like bexio can significantly streamline these operations. If you have any further questions or need clarification on specific points, feel free to ask.
