A Tax Invoice is an important piece of document which is prepared to account for the tax accrued from a particular job or project. It can be separate from a normal invoice for a project if the party wishes to separate the information for tax reporting.
A Tax Invoice template can look very much like an invoice template with the following information at the top:
* Company Name & Address
* Recipient’s Name & Address
* Invoice Number
* Project Description
The above are the basic information to be transmitted between the sender and recipient. As it is a document on taxes, care must be taken to ensure the right and accurate information to be listed on this tax invoice document.
The body of the Tax Invoice template may contain the following columns of information:
* Tax Rate
* Tax Sub-total
* Tax Total
* Grand Total
Each row should record clearly the tax, discounts or sales tax for accountability. The description row should list clearly the nature or form of the tax imposed so that there will be no disputes over the figures. The Total columns should be correctly added to allow prompt payment.
At the bottom of the Tax Invoice form, you can list out some instructions to the recipient, such as ‘Checks can be made payable to …’ with your company name according to the company’s banking account. Payment due date can also be included as a reminder.
Consider the attached sample template for your convenience.