Accounting terms

Dictionary of all accounting terms

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

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