Invoicing

Requirement

VAT registrants must issue a tax invoice for every taxable transaction. Invoices must show this information:

• Nature and value of the sold goods or provided services
• Amount of due VAT

For sold goods, VAT must be accounted when tax invoices are issued. This information is used as an evidence for claiming input tax credit. Each tax invoice has one and only one VAT rate. These requirements must be followed:

• VAT must be calculated at the invoice header level instead of the invoice line level.
• VAT must be based on the total invoice amount after discount. Tax invoices must clearly show discounts and allowances.

Tax invoices and credit notes must contain at least these elements:

• The term ‘Tax invoice’ in a prominent place
• Name, address, and tax identification number of the issuer
• Whether the issuer is the headquarter or a branch, in which case the branch number must be provided
• Name and address of the purchaser
• Whether the purchaser is the headquarter or a branch, in which case the branch number must be provided
• Serial numbers of the tax invoice and tax invoice books, if applicable
• Description, value, and quantity of the goods or services
• Amount of chargeable VAT
• Date of issuance

M3 solution

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