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.
Billing address: Definition, obligations, examples
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.
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.
We will show you what an billing address can look like using several examples:
Business address for invoicing
bexio AG
Attn. John Doe*
Alte Jonastrasse 24
8640 Rapperswil-Jona
*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
John Doe
St. Gallerstrasse 1
9000 St. Gallen
Address abroad for invoicing
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.
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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