What is a Tax Invoice?

A tax invoice is a legal document that a seller submits to a customer in which the tax is included or a document (in India) from a registered supplier to a registered dealer.

For GST countries

Under the GST (Goods and Services Tax) system, a tax invoice is similar to a standard invoice.

The minimum requirement for issuing a tax invoice is different in varying GST countries.

For example, in Australia, if your taxable sale is higher than $82.50 including GST, you have to submit a tax invoice to your GST-registered customers so that they can claim a credit for the GST.

Your tax invoice should include:

• the words 'tax invoice' clearly displayed

• the sellers identity and business number

• the invoice date

• a description of the items, their quantities and price

• the GST applied for each item

• the total amount including GST

Different countries may have different requirements for what information a tax invoice should contain.

Tax invoices in India

For India, a tax invoice is a legal document that a registered dealer (the supplier) sends to the another registered dealer (the purchaser) once a sale has been made. The purchaser is not the consumer (the end user) and therefore a tax invoice is used. If the product or service is sold to a consumer, a retail invoice should be used.

This tax invoice should include the following:

• the invoice number and date of issue

• the names and addresses of both the buyer and seller

• the Tax Identification Number (TIN)

• the quantities and unit prices for the items sold

• the total amount

• the tax charged

• the signature of the authorized signatory