Invoicing to yourself

This is a question that comes up often here, but there is no definitive answer.

First and foremost, it is best to immediately split the incoming invoice into goods and costs. You can do this by charging the invoice twice for part of the total amount. Then the costs are immediately stated as good.However, I acknowledge that at the time of purchase, it is not always clear that these will be included in the costs.

It has already been suggested here that you can invoice yourself, but my concern with this is that you will unnecessarily increase your turnover if you do so at a price. This is because you are creating a sales invoice that is also valid as a purchase invoice.In principle, no action is required for vAT purposes. For vAT recovery, the costs are the same as for the purchase of goods. So you could simply take the product out of inventory without an invoice. To account for the change in inventory, you can keep a separate list or create an invoice for €0.This is a summary of the possible answers that have already been given here. I would also like to hear if there is a more standard method for this.

Hi WD, thank you for your response!

1. I don't know who you are, so I don't know if you are familiar with accounting legislation. That is important for me to know. That is why I question your answer a little, but perhaps that is unjustified.

2. If you create an invoice to yourself, you do indeed increase your turnover, but on the other hand, you can also enter that expense as a cost, which means you don't have to create a separate list and you can link the expense to a specific expense category. But again, does this comply with the legislation on accounting for sole proprietors?

This blog states the answer clearly: https://dexxter.be/zakelijke-aankoop-in-boekhouding-voor-privegebruik/

Kind regards,
Louise

www.ticenits.be

Hi Louise,

Thanks for your reference, but that doesn't answer the question from the original poster at all.

Your answer with a method to book private use in, of course you then simply sell to yourself.

The question was about moving previously recorded trade goods to expenses.I understand what you mean. I suspect that both the grooming salon and the shop belong to the same company/sole proprietor. If that is the case, then nothing needs to be done in terms of accounting. You have already added the purchases of trade goods to your expenses, and it does not matter which business activity you ultimately use them for.

Hello Louise and others

Accounting-wise, this may be okay, but where did those items go? They haven't been sold. If I do it this way, the items have mysteriously disappeared, and the tax authorities don't like that. So my solution would be to invoice myself. As a result, all items are traceable and my stock is okay in one go. I could also create extra lists, but that would mean more work and I would have to manually adjust my stock every time. So my question is, can I invoice myself?