What is a Down Payment

Advance or down payment is prepaid for purchased goods or works or services ordered. According to the regulations provided by the Government, the received advance amount should be written on separate invoice to record the amount of the advance in the sales book.

Down payment is a preliminary payment for goods, services or works that the customer has ordered. Terms of payment should be calculated only if you have provided full detail of the purchase. To calculate the amount of advance tax payments on the property, you need to determine the residual value of fixed assets.

Instructions

  • 1

    If you take the sum of each advance is not carried out on a separate invoice and registered under a separate number in the record book sales, this may be a gross violation of the rules. Your transactions should be provided to work with financial resources in the provision of sales, services or works.

  • 2

    Spend advance billing-system numbers in the book keeping. You cannot put the serial number indicated on the normal texture. Every advance invoice spends under its serial number, without mixing with the numbering trademarks or common textures. If all the documents have the same serial numbers, one after the other, you will be penalized.

  • 3

    During the advance invoice, you must indicate the name of your organization and the TIN number which possesses the same information about the customer record.

  • 4

    Write a full description of the goods, services or works for which paid the down payment.

  • 5

    Specify the percentage of the tax rate and the full indication of its amount. The tax rate shall be presented to the customer before putting up the tax rates for the goods, services or works.

  • 6

    In manual mode, compose and spend down payments on the invoice for the payment order.

  • 7

    At the end of the quarter, for a report on the tax period, all invoices must be enrolled in automatic registration is mandatory, indicating the rate and amount of VAT.

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