A tax invoice broadly contains the description of goods sold, their quantity, taxes charged, total taxable value, and other particulars. It is a piece of primary evidence that the recipient of goods can claim an input tax credit.
Having a proper invoicing system is very helpful for a business in many ways. The availability of various invoice formats has made it possible for a business to customise its invoice and thus make it more reliable and trustworthy. Some of the other benefits are-
There are various formats of a tax invoice. ClearOne provides various invoice formats. A taxpayer can choose a format that best suits its business requirements. Some of the formats are shown below:
A valid tax invoice follows the same basic invoice format. An ideal tax invoice usually contains the following information:
The main objective of a tax invoice for a recipient is to avail input tax credit. From a supplier’s point of view, they serve as proof of goods sold and provide data for financial reporting purposes. Thus, a business can choose the right format based on its business needs. Simpler and good looking formats help to enhance business finance in a better way.
Below fields of a tax invoice can be customised:
By saving this information or creating a master list using an invoicing tool, one can avoid potential mistakes while typing out addresses and descriptions for each new invoice. In addition, it improves efficiency.
A tax invoice includes goods details, taxes, and contact information. Different formats available suit business needs. Benefits include brand promotion and customization. Fields like payment terms and product description can be customized to enhance efficiency.