Taxes
What Is a Tax Invoice?
A tax invoice is a standard invoice that meets the legal requirements for charging and reclaiming tax — most commonly VAT or GST. If you're registered for tax, you're generally required to issue tax invoices, and your business clients can't reclaim input tax without one.
By Invoala Editorial Team · Published 2026-08-29 · Updated 2026-08-29
What makes an invoice a 'tax invoice'
Beyond the usual invoice contents, a tax invoice must show the tax explicitly: your tax registration number, the client's tax number (when required), the taxable amount, the tax rate, and the tax charged. The exact requirements vary by country — check your local tax authority's rules.
Common requirements
Most jurisdictions require: the words 'Tax Invoice' on the document, seller's name and tax ID, buyer's details, a unique invoice number, the invoice date, a description of the goods or services, the amount excluding tax, the tax rate, and the total tax. Some also require the currency and exchange details for foreign invoices.
How Invoala handles tax invoices
In Invoala, set your tax rate in the generator and it calculates the tax and total automatically, showing a labeled tax line on the PDF. Add your tax registration number as a custom field so it appears on every document. You can also set the document title by choosing the invoice type.
Simplified tax invoices
For small transactions (under a threshold that varies by country), a simplified tax invoice may be allowed — usually the same document minus the buyer's full details. Check the threshold in your jurisdiction before relying on this.
Keeping tax invoices
Most countries require you to keep issued tax invoices for several years. Saving your invoices in Invoala keeps them searchable and re-downloadable when the tax authority asks.
Example
A UK VAT-registered designer issues an invoice for £1,000 with 20% VAT: subtotal £1,000, VAT £200, total £1,200, with their VAT number shown on the invoice. The client's accountant reclaims the £200 input VAT using this document.
Frequently asked questions
Is every invoice a tax invoice?
No. An invoice only qualifies as a tax invoice when it contains the tax information your jurisdiction requires — including your tax ID and the tax breakdown.
Do I need a tax invoice if I'm not VAT registered?
If you're not registered for tax, you can't charge it — so you issue a regular invoice without a tax line. Once registered, tax invoices become mandatory for taxable supplies.
Where do I put my tax ID on an invoice?
Near your business details at the top. In Invoala, add it as a custom field or in your address block so it appears on every PDF.
Put it into practice
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