An invoice is the document stating the occurrence of a transaction. Therefore, it is
considered the cornerstone of any system of Sales- taxation. Since the taxable act is
the “Sale” of goods or the supply of services this act needs to be proved or
documented. Without these documents ( invoices) there is no tax, no books, no
records, no accounting and the tax system collapses.So tax officers all over the world
, always insist on the issuance of a tax invoice to cover each sale or transaction, Also
the most common way of tax evasion arises through failing to issue a tax invoice to
cover deals or transactions.
Invoice and Tax-Invoice:
Before the rise of sales taxes the issuance of an invoice was set by the Commercial
Code, Since it was- righteously- considered the core of accounting. However all
respectable traders find it normal to issue invoices covering their dealings and thus
guaranteeing the quality of their supplies of goods and services.
The ordinary invoice includes the name of the business, vendor and its Logo, the
description of the goods (or services) sold, the price of each unit, value thereof and
the total value as well as the serial number and the date of issuance thereof. Often the
invoice is stamped (PAID)to indicate payment of the price.
Also, every invoice has a serial number and a date for recording it in books for
accounting thereof in the books .
Now what is new with the Tax-Invoice?
Only the seller or vendor shall add the tax rate and the tax due SEPARATELY in
order to declare the amount of tax he charged the purchaser,that amount which he
shall send to the Department accompanied with his return.
That simple. Also the purchaser registration number shall be included.
Again What details should be included in a Tax -Invoice?
1. Name and address of vendor.
2. His / her registration number.
3. Name of purchaser and his / her registration number (I if any).
• The Serial number and issuance date of the tax invoice.
• Description and name of the goods or services sold.
• Price of the unit.
• Total value of the transaction before charging it with tax.
• Tax rate applied to the supply.
• Amount of tax on the transaction.
• Total value after adding the tax amount which is payable by the purchaser.
The absence of any of these details.
Raises suspicion as to the credibility of that document.
Why do SOME businessmen resist or deliberately neglect the issuance of tax invoices?Logically
for one single?
reason: to commit tax fraud or tax evasion.
Dear registrant..of course you are not one of them!