If you are running a VAT registered business, there is one document you cannot afford to mess up the tax invoice. It is more than just a receipt . It is a legal requirement and the backbone of proper VAT compliance.

Whenever you supply taxable goods or services, you must issue your customer with a tax invoice within 14 days after completing the supply. This single document protects both you and your customer by clearly showing how much VAT was charged.

But what exactly should a proper VAT tax invoice include? Let us break it down.

What Every VAT Tax Invoice Must Contain

A valid tax invoice is not just a piece of paper; it is a checklist. Here are the essentials that must appear on it:

1. Supplier Details
Name, address, and VAT registration number of the supplier. This proves the invoice comes from a legitimate VAT-registered business.

2. Serial Number and Date
Every invoice needs a unique serial number and an issue date for tracking and audit purposes.

3. Date of Supply
If the supply date is different from the invoice date, it must be shown separately.

4. Customer Details
The name, address, and VAT registration number of the buyer (if they’re registered). This helps both parties when claiming input tax.

5. Description of Goods or Services
A clear breakdown of what was supplied type, quantity, and price.

6. Taxable Value
If the taxable value differs from the price charged (due to adjustments), the correct value must be shown.

7. Discounts
Any cash or other discounts offered should be listed clearly.

8. Mode of Payment
Is the supply for cash or credit? The invoice must state this.

9. Total Invoice Value
The total amount payable, including the total VAT charged.

10. VAT Rate and VAT Amount
The rate of VAT applied to each item and the amount of tax for each good or service provided.

Thank you for reading this article. Have a fruitful day, won’t you!!!!!