How to Create a Tax Invoice: A Step-by-Step Guide (9) | Saldoinvoice.com

How to Create a Tax Invoice: A Step-by-Step Guide

Timely billing is the key to success for any firm. It doesn’t matter if you are a certified public accountant or a small store owner, understanding how to prepare tax invoice correctly is the only option if you are going to circulate business for the long haul.

What Is a Tax Invoice?

There’s nothing fancy here in understanding the tax invoice meaning. It’s a child’s play if you set it down as a record containing explicit data about all the benefits you have brought to your buyers.

There is the belief that assembling the advance return for tax on sales/purchases is a simple practice, and the form can be drawn up in no particular form. Actually, it’s not. The financial invoice template has a clear structure and contains specific data organized as detailed financial reports. If you plan to be on an equal footing with successful entrepreneurs, using a template for tax invoice is the easiest and most businesslike option to set your report papers in the right way. Otherwise, you may be faced with the fact that the revenue office will reject the paper and recommend returning with the generally accepted version.

What Must be Included in a Tax Invoice?

Even a quick Google search will be enough to convince you that filing a declaration will require you to provide a clear list of information. No biggie if you are new to assembling the paper for an invoice for tax purposes. Below you will uncover a complete list of data that must be embedded in it:

  1. Invoicing date and numerical order
  2. Buyer full name (double-check the spelling)
  3. The bill to location details and shipping address particulars (no matter if it concerns services or goods)
  4. The title of the document must necessarily contain the “Tax Invoice” heading
  5. Merchant full name and Contact Data
  6. A detailed G&S (goods and services) depiction (do not forget to indicate the overall number and rates)
  7. The output tax amount
  8. The aggregate value of goods sold, including tax
  9. Your signature as a merchant
Why Is a Tax Invoice Important?

Why Is a Tax Invoice Important?

Without going into all ins and outs, the form fulfills the most critical role of recognizing and confirming business dealings in taxation. Perhaps you are wondering, “What is a tax invoice used for”? It’s simple. This format of reporting is used for accurate accounting and for providing comprehensive records to the tax authorities.

As a result, a company is eligible to apply for financial assistance from the state. Let’s hope you now understand why are tax invoices necessary. Next, let’s consider practical tips on how to generate a tax invoice so that the tax authorities will accept it on the first try.

How Long Do You Need to Keep Invoices for a Business?

Read why necessary documentation should be kept in case of a dispute.

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How to Create a Tax Invoice?

If you have read this far, you now recognize what needs to be on a tax invoice and that submitting this document on time can get you government financial assistance. You may wonder: “How do I make a tax invoice myself if I don’t have an accountant or financial advisor?” Don’t worry; all you need is Microsoft Word and a few minutes of your time.

Check out a no-hassle and 1-minute guide on how to format this paper hands down:
  1. Set a new copy.
  2. Add a “Tax Invoice” headline.
  3. Move your mouse cursor to the document’s top right and add detailed information about your business.
  4. Specify particulars about your buyer in the bottom left corner of the document.
  5. Add the date and invoice number in the lower right corner of the paper.
  6. List a detailed description of all items sold and the cost of each item.
  7. Add up the lump sum, including taxes, shipping costs, etc.
  8. Figure the total amount and highlight it in bold.
It would be better if you added a note related to a payment method used by a client to make it.

What Is a Recipient Created Tax Invoice?

A merchant is not always necessary to issue an invoice to a customer. There are times when a supplier uses a tax invoice for these purposes. It is possible only if a supplier and a client have agreed in writing in advance on such an agreement.

From a technical point of view, a recipient of the goods must issue a tax invoice within 28 calendar days from the date of sale. Besides, both parties must keep originals and copies of this financial document for tax purposes.

Use printable invoice  to produce the ideal, precise, and understandable free tax invoice. It’s so easy to complete, download, and send.

Track your income with financial reports

Check all your invoices: sent and received in payments report

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Is a Tax Invoice a Receipt?

Many novice business people do not understand the difference between a tax invoice and a receipt. It’s OK if you are a newly-minted entrepreneur wondering is a tax invoice the same as a receipt or not. Here is an explanation in plain English. A tax invoice is a document filed with the tax authorities and used by companies to receive financial assistance from the state at the end of the year.

In turn, a bill contains basic information about the list of goods sold and does not require detailed information about a buyer or the terms and conditions of the sale. Both papers are aimed at bookkeeping, and still, they bare different purposes. Small business owners can use a simple receipt template for convenience.

Ivan Burban
Ivan Burban
CMO of Saldo apps, who is a focused and result-oriented marketing professional.
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