Taxes are part of the business transaction. Every business pays tax. Every consumer pays tax. For large businesses, a tax invoice is a consolidation of the transactions performed with another party and the total amount of taxes accrued is to be listed in a tax invoice.
A tax invoice is different from a normal invoice which a party can submit to the Internal Revenue Department for tax reporting.
A Tax Invoice template looks very much like an invoice in structure:
* Company Name & Address
* Recipient’s Name & Address
* Invoice Number
* Tax Rate
* Tax Sub-total
* Tax Total
* Grand Total
There are legal implications on a tax invoice; hence, a business must know how to record the transactions properly to accrue for the sales or profit that is taxable.
A tax invoice is also generated to customers who want to apply for the sales tax credit which they would submit to the taxation bureau for tax claim purposes.
A business entity is obligated to provide a tax invoice to its customer on demand. A tax invoice template is very helpful to the business by being available to generate the tax invoice copy easily and repeatedly. All tax invoices will be different with different information recorded on them, but they do have a similar structure. Hence, a tax invoice template comes in very handy to any business.
Consider the attached sample template for your convenience.