A tax invoice is an invoice that clearly shows the tax charged on a sale, along with the seller’s tax registration number. Registered businesses issue tax invoices so the buyer can reclaim the tax and both sides have a proper record.
What makes an invoice a “tax invoice”
On top of the usual invoice details, a tax invoice shows the tax amount (often broken out per rate) and the seller’s tax ID (VAT number, ABN, GST/HST number, etc.). That is what lets a registered buyer claim the tax back.
By country
- US — an invoice showing sales tax by rate; there is no single national tax number.
- UK — a VAT invoice showing your VAT number and the VAT per rate.
- Australia — must carry the words “Tax invoice”, your ABN and the GST amount.
- Canada — shows GST/HST (and PST/QST where it applies) and your registration number.
Do you need to issue one?
If you are registered for VAT/GST (or charging sales tax), you generally need to issue a tax invoice when you make a taxable sale. If you are not registered, you issue an ordinary invoice with no tax line.
Create a tax invoice free — pick your country and the tax is built in.