A tax invoice plays a vital role in the world of business. Almost all business issue a tax invoice to have a proof of their goods provided and/or their service rendered. Failure to issue a correct tax invoice or even just a non-trade invoice in excel may result in fine and penalty of a large amount or worst, imprisonment.
A tax invoice is a special type of simple invoice, which contains important and necessary information needed for an effective and efficient maintenance of the GST system, A tax invoice is critical because they record decent acquisitions for which an input tax credit can be claimed. Without proper tax invoice, a business can not deduct input tax.
Commercial Tax Invoice
Valid Tax Invoice
What Is a Tax Invoice?
A tax invoice is an account that appears in the balance sheet in pdf of a business. A tax invoice shows the GST (Goods and Services Tax) on the goods and services provided. A tax invoice is a standard invoice required under GST system. All business must issue a tax invoice to their customer.
How to Issue a Tax Invoice
A tax invoice must be issued within 21 days from the time the goods delivered or services rendered. A tax invoice is not issued on a zero-rated supply and for a supply of second-hand goods and imported services.
Browse our tax invoice in PDF and other file formats here.
How To Write A Tax Invoice?
If your business provides a tax invoice, there are particular things you need to include in your tax invoice for it to be valid:
- The word “Tax Invoice” must be written clearly at the top
- The tax invoice number together with the business invoice number
- Date of the tax invoice issued
- Business name, address, and the GST registration number
- Name and address of the customer
- Detailed list of the goods delivered or the services rendered
- Quantity of the goods and/or services
- Discounts and promo (if any)
- Total sale amount before GST
- Rate of tax
- Total GST Charged
- The overall total amount including GST
Business Tax Invoice
The Purpose of Tax Invoice
There are numbers of reason why a tax invoice is important.
- A tax invoice is used to claim back the GST they have paid on the purchase from a supplier.
- A tax invoice informs the customer the goods or service they bought and their total payment.
- A tax invoice records how much VAT (Value Added Tax) you paid.
- A tax invoice is used to keep their books accurate.
- A tax invoice in word also helps the business track the taxes they have taken from the customer.
Feel free to browse and download our printable invoice to give you a head start on creating a tax invoice.
Requirements for Tax Invoice
A tax invoice must supply a number of requirements. It should include the following data.
- Name and address of the supplier
- VAT identification number of the supplier
- Customer’s name and address. A simplified tax invoice form may not include this data.
- The invoice number
- The Invoice Date and the date the goods and services supplied.
- The quantity and the type of good and/or service provided.
- The goods and service invoice.
- The price per unit excluding the VAT
- Reductions of the price
- VAT tariff that is included in the tax invoice
- The cost (excluding VAT)
- The date of advance payment
- The amount of VAT