What Is a Tax Invoice?

A tax invoice is an invoice that contains every detail a country's tax authority requires, so a business buyer can reclaim the VAT or GST it paid. In the UK it is called a VAT invoice. In Australia and New Zealand it is called a tax invoice. The US has no VAT or GST, so there is no national tax invoice format there.

In the UK, a VAT-registered business must give a VAT invoice to VAT-registered customers. A full VAT invoice shows a unique invoice number from a sequence, the issue date and the time of supply, your name, address and VAT number, the customer's name and address, and a description, quantity and price for each item, with the VAT rate, the total excluding VAT and the total VAT. Sales of £250 or less including VAT can use a simplified invoice.

In Australia, a GST-registered business must issue a tax invoice within 28 days when a customer asks for one, unless the sale is $82.50 or less including GST. The document must say it is a tax invoice and show your ABN. Sales of $1,000 or more must also show the buyer's identity or ABN.

SolidInvoice lets you set a tax rate on each line item and shows the tax totals on the invoice. Rules change, so check your tax authority's current guidance. This page is general information, not tax advice.