What is a tax invoice?

A tax invoice is a document issued by a seller to a buyer that lists the products or services provided, the quantity, the price, and any applicable taxes. It serves as a legal record of the transaction and is used for accounting and tax purposes.

Key information that is typically included on a tax invoice includes the seller's name and contact information, the buyer's name and contact information, a unique invoice number, the date of the transaction, a description of the products or services provided, the quantity, the price per unit, any applicable taxes (such as sales tax or VAT), and the total amount due.

Tax invoices are important for both the seller and the buyer as they help ensure proper record-keeping and compliance with tax laws. In some countries, businesses are required by law to issue tax invoices for certain transactions. Failure to issue accurate tax invoices can result in penalties and fines.