Tax Invoice
A tax invoice is an invoice that meets the legal requirements for tax purposes.
A tax invoice contains all the details a tax authority requires — seller and buyer tax IDs, invoice number and date, descriptions, taxable amounts, and the tax charged. It is the document that lets the buyer claim input tax credits and obliges the seller to report output tax. Requirements vary by country, so check your local rules.
Example
A VAT-registered business issues a tax invoice showing its VAT number, the 20% VAT charged, and the total.
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Frequently asked questions
What makes an invoice a tax invoice?
It must include everything your tax authority mandates — typically both parties' tax registration numbers, a unique invoice number, the date, a description of the supply, and the tax amount. An ordinary bill missing these details is not a valid tax invoice.
Can a proforma invoice be a tax invoice?
No. A proforma invoice is issued before the supply and is not a tax document. A tax invoice is issued when (or after) the goods or services are delivered.
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