Transactional Records

A transaction is an act, or series of acts involving commercial negotiations, e.g. buying and selling, which results in an exchange of legal rights and duties of the participants.

Every transaction has three components:

(1) transfer of good/service and money,

(2) transfer of title which may or may not be accompanied by a transfer of possession, and

(3) transfer of exchange rights.

EU transactions

Within the European Community, 4 types of transactions are recognised

  • Supply of goods
  • Intra-Community acquisition of goods
  • Supply of services
  • Importation of goods


Types of transactional records

For business enabled electronically, any one of these types can apply. For example, some transactions are entirely electronic, e.g. downloading software, whilst others may require the physical delivery of goods to an address. Records will need to be kept for the whole transactional process, and will include:

  • Annual accounts, including profit & loss accounts
  • Bank statements & paying-in slips
  • Cash books & other account books
  • Credit or debit notes you issue or receive
  • Documentation relating to dispatches/acquisitions of goods to/from EC Member States
  • Documents or certificates supporting special VAT treatment such as relief on supplies to visiting forces or zero-rating by certificate
  • Import & export documents
  • Orders & delivery notes
  • Purchase & sales books
  • Invoicing and E-invoicing
  • Records of daily takings such as till rolls
  • Relevant business correspondence
  • VAT account

The invoice is the base-line document for all transactions because it is evidence that the transaction took place.

Supply chain messages

Messages contain the combination of data elements (such as quantities, names, dates, etc) which enable individual and joint management of the value chain by the participants. These include transactions such as orders to produce, move, deliver or pay, invoices, statements, plans etc.

See Data and Information