Tax invoice template
Tax invoice template is a document that meets legal and tax requirements for recording a sale and the tax applied (VAT, GST, or sales tax). It should include seller and buyer details, tax ID(s), invoice number and date, description of goods or services, quantities and prices, tax rate and amount, and total. The IRS does not prescribe a form but expects records that support income and deductions; many jurisdictions require specific elements for VAT/GST.
Tax invoice template Sample
Tax invoice template
123 Business Street, City, Country
Phone: (123) 456-7890
Email: contact@company.com
Tax invoice template
Bill To:
Client Name
Client Address
Client City, Country
Phone: (987) 654-3210
Email: client@example.com
Invoice #: 12345
Date: 2024-10-10
Due Date: 2024-11-10
| Item | Description | Qty | Price | Total |
|---|---|---|---|---|
| Service A | Itemized service or product | 1 | $100.00 | $100.00 |
| Service B | Additional line item | 2 | $50.00 | $100.00 |
| Subtotal | $200.00 | |||
| Tax (10%) | $20.00 | |||
| Total Due | $220.00 | |||
An invoice should include your business or name, the customer’s details, the date and invoice number, and a line-by-line breakdown of what was provided. Including payment terms—such as due on receipt, Net 15, or Net 30—helps you get paid on time and keeps records clear for taxes.
Supporting resources
| Resource | Type | Description |
|---|---|---|
| IRS-accepted invoice | Government | No set form; must show who sold what to whom, when, what was delivered, amount charged, taxes collected, and payment terms. |
| VAT/sales tax invoice elements | Checklist | Seller and buyer names, addresses, TIN/VAT numbers; invoice number and date; description, qty, unit price; tax rate and tax amount; total. Time of supply where required. |
| Stripe – Tax invoices guide | Industry guide | What to include on tax invoices for compliance and customer clarity; multi-jurisdiction considerations. |
Frequently Asked Questions
- What is a tax invoice vs a regular invoice?
- A tax invoice explicitly shows the tax (VAT, GST, or sales tax) as a separate line and includes tax IDs and other details required for tax compliance. A regular invoice may not break out tax.
- Does the IRS require a specific invoice format?
- No. The IRS requires records that support your income and expenses—who, what, when, how much, and tax if applicable. A clear tax invoice satisfies that.
- When do I need to issue a tax invoice?
- When you collect sales tax, VAT, or GST you typically need to issue an invoice that shows the tax. B2B and cross-border rules vary by jurisdiction.