A Tax Invoice is a formal request for payment that will ensure that you get paid for your goods and services. It is suitable if for your business registered in Australian. Customisable and ready to use in under 5 minutes.Get 1st document free
Whether you are a seller or a buyer, having a record for your transactions are essential. These records are usually known as a Tax Invoice. A Tax Invoice can be extremely important when you are required to provide a proof of purchase for taxation purposes and accounting purposes.
What is a Tax Invoice?
A Tax Invoice is a detailed record of any transaction, whether that be for a product or a service. A Tax Invoice will usually stipulate the following information: total amount due/total price of the product or service (include GST and indirect tax/VAT), type of product purchased, the quality of the product or service, invoice number, details of the supplier and recipient such as phone number and address, date of the invoice, company logo (if applicable) and much more.
A new invoice should be provided for each new purchase.
Other names for a Tax Invoice
A Tax Invoice may also be known as Electronic Invoices, an e-Invoice or Invoice Template.
Why would I need a Tax Invoice?
If you are the recipient or seller of goods or a service, having a tax invoice is important if you ever need to provide evidence of your purchase or sale. A Tax Invoice may be important for taxation purposes and accounting purposes. Tax invoices also allow you to track your purchases for budgeting. Tax Invoices also play an important governmental role in the prevention of tax evasion.
For businesses, using a tax invoice means that there is alwas a ‘paper trail’ or documentary evidence of the purchases made by customers. You may require this as evidence of purchase if there is any dispute between yourself and the customer.
A Tax Invoice will act as a receipt of purchase and provide details surroudning the price, products or services, and quantity involved in your transaction. Obtaining a Tax Invoice is a great way to ensure tax compliance and tax obligations are being abided by.
Therefore, you should use this Tax Invoice if:
- Your business is registered for GST;
- You want to have a record of purchases made by customers;
- You want to be transparent;
- You want to formalise purchases;
- You want to keep track of spending;
Why should I track my purchases?
As a customer, it’s understandable that you will want to know what you’re spending and easily access the record of purchase if you need to. Having a tax invoice will help you keep track of your spending but also may be required if you dispute terms of the purchase or wish to exchange or refund the goods.
As a business owner, keeping a concise record of your business purchases will be important come time tax return time during the end of every financial year.
Am I legally required to provide a Tax Invoice?
It is legally required that a Tax Invoice be issued if a purchase exceeds $82.50 (excluding GST), if a customer requests one or if the purchase is taxable. Beyond this, issuing a tax invoice legitimises your transactions as a business and will serve as useful evidence of the purchases made by customers.
What does the Tax Invoice cover?
- Statement that it is a tax invoice;
- The identity of the seller/supplier;
- The identify of the customer/purchaser;
- The Australian business number (ABN) of the Seller;
- The date the invoice was issued;
- A brief description of the items sold, including the quantity (if applicable) and the price;
- The GST amount.
Other documents you may need
- 5 Reasons Why Having Accurate Business Activity Statements (BAS) Is So Important
- Tax Benefits of Registering A Business
- What tax can I expect to pay if I’m self-employed?
- Payroll Tax: 3 Exemptions You May Not Be Aware Of
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