Invoice Types

What Is Intercompany Invoice?

An invoice between two entities within the same parent organization.

Detailed Explanation

Used to allocate shared costs, transfer-price goods, or charge for services between subsidiaries. Must comply with transfer pricing rules to avoid tax issues.

Example

The US subsidiary invoices the UK branch for shared software platform costs at an arm's-length rate.

Why It Matters

Proper intercompany invoicing prevents tax authority challenges and ensures accurate consolidated reporting.

Related Resources

International invoicing guide
Invoice tax compliance

Related Invoice Types Terms

Proforma Invoice Commercial Invoice Tax Invoice Credit Note Debit Note Self-Billing Invoice

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