The Invoice From Lisbon

The situation

A Johannesburg manufacturer is invoiced €180,000 by a Lisbon consultancy for systems design delivered entirely from Portugal. The purchase order was raised locally, the work never touched South African soil, and the consultancy holds no local registration. Accounts payable pays the invoice at the spot rate, in full, and the finance director signs it off as a deductible service fee. A treaty between the two states is in force.