Tax Invoice 

Definition

A document that shows a value-added tax item and which is recognized by the tax authorities as evidence that a VAT transaction occurred. Tax invoices are thus used to substantiate tax returns. There are two types of tax invoices, normal tax invoices and exempt tax invoices.

Use

In the system, you print tax invoices from commercial invoices that you have created using Accounts Receivable (FI-AR) or Sales and Distribution (SD). For this to work properly, you must have maintained your customer master records.

Note that the special functions in the system only affect outgoing tax invoices, that is, those that you send to your customers.

Structure

Header Data

Every tax invoice bears a tax invoice number and a tax invoice date. When you print a tax invoice, the system fills out these fields automatically. The tax invoices also show the tax book number, which you have to fill out manually.

The header also shows various information about both parties to the transaction, such as:

·        Company's name and address

·        VAT registration number (or if the company has not yet been issued a VAT registration number, the representative's personal identification number)

·        Business place

·        The name of the company's representative

·        Type of industry and type of business

Finally, the header shows the total tax base and the total VAT.

Line Items

The official preprinted stationery for the tax invoices only has space for four line items.

·        If you create tax invoices from commercial invoices from SD, the tax invoice shows a separate line item for each material sold. For each material, it prints the material's description, the quantity sold and the unit of measure, the tax base and the VAT amount.

If the commercial invoice has more than four line items, the system prints the word "Other" in the Quantity field and the total number of the remaining materials in the Unit Price field.

·        If the commercial invoices are from FI-AR, the system does not have all the required information about the materials sold. Instead, it only fills out the first line, where it prints the total tax base and the total VAT amount from the commercial invoice.

Bottom Line

At the bottom of the stationery are a number of fields, Cash, Check, BoE (Bill of exchange), and Receivable, which are for official use only. There is also a field where you can specify whether the tax invoice is a receipt or for billing. The system puts a checkmark next to one or the other, depending on what you select on the report selection screen.