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 invoicing 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.