Tax invoice is a document which states the transaction occurrence. Hence, it is considered as a vital element of any sales taxation system. So the individuals should know what are the requirements of a tax invoice which keep the tax tract and the status of the payment of the customers’ purchases. Without the tax invoices there is no books, no tax, no accounting, no records and the system of the tax collapses.
Therefore, the officers of tax system throughout the world, will every time insist on the tax invoice issuing to cover each transaction or sale, as the usual way of tax evasion begins by failing in issuing a tax invoice to cover the transactions or deals.
In common, the tax invoice should contain the following:
- An invoice number or identifying number.
- The supply date that is the tax point.
- The supplier’s name, the address and the registration number of VAT if applicable.
- The customer’s name and the address to which the services or goods are supplied.
- The supply type, by reference to the below categories.
- By the sale
- With the hire purchase or any transaction which is similar.
- By the loan.
- The exchange way.
- On lease, hire or rental.
- The goods made process from the materials of customers.
- On the return or sale or any similar terms.
- An enough description to identify the services or goods.
- For every description, the goods quantity or the services extent, the tax rate and the payable amount, not including the tax, expressed in a fine way.
- The payable gross amount, not including the tax, expressed in a fine way.
- The rate of any provided cash discount.
- The tax chargeable amount at each rate.
- The total tax chargeable amount expressed in a fine way.
- The purchase order number of a university.
When an invoice consists of the details about the services or goods which are zero rated or absolved additional to the taxable supplies, those services or goods should be differentiated on the invoice and the total should be done separately. The total VAT amount on all the services and goods may be turned down to the nearest penny. All the companies who registered for the VAT should provide the invoices with clearly quoted VAT number.