What six (6) pieces of information should be contained on the Tax Invoice for VAT Purposes...

What six (6) pieces of information should be contained on the Tax Invoice for VAT Purposes and why do you think it is included.

Taxation (100 words)

Expert Solution

These are the six pieces of information that must be disclosed on the Tax Invoice for VAT purposes-:

(i) "Tax Invoice" should be mentioned in the invoice. This written to understand that the invoice is a tax and vatable invoice. This differentiates normal proforma invoice from the tax invoice.

(ii) Seller's name and registration. This is mentioned to trace the party who issues the invoice.

(iii) Recipient's name and address. This is mentioned to trace the purchasing party.

(iv) Quantity description and item description. This is mentioned so that appropriate rate can be checked for the particular item for levy of tax.

(v) Invoice date. Date of invoice is mentioned so that it can be appropriately accounted and used in VAT return.

(vi) Break of amount inclusive or exclusive of tax. If it is inclusive then the fact that the amount is inclusive of VAT. This helps in taking VAT Input by the purchasing party and assessing VAT liability for the seller of goods.

ekkarill92 answered 2 years ago

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