What is Sales Tax Invoice?
A sales tax invoice is the invoice a sales tax registered person must issue for a taxable supply, showing the details the Sales Tax Act, 1990 requires, including both parties' registration numbers and the tax charged.
Updated
Meaning
English
A sales tax invoice is the invoice a sales tax registered person must issue for a taxable supply, showing the details the Sales Tax Act, 1990 requires, including both parties' registration numbers and the tax charged.
Roman Urdu
Sales tax invoice woh invoice hai jo sales tax registered shakhs taxable supply par deta hai, jis me Sales Tax Act ke mutabiq dono parties ke registration number aur tax ki raqam hoti hai.
Also called tax invoice, GST invoice, sales tax bill.
Example
A registered wholesaler supplies a registered retailer. The invoice shows both names, addresses and registration numbers, the date and serial number, each item with quantity, the value excluding tax, the sales tax and the total including tax.
How it works
Section 23 of the Sales Tax Act, 1990 lists what a tax invoice must contain, including the supplier's and recipient's names, addresses and registration numbers, the date, a serial number, a description and quantity of goods, the value excluding tax, the tax amount and the value including tax. Invoices must be issued in the form and manner FBR prescribes, which now includes electronic invoices for many registered persons.
The buyer's right to claim input tax depends on holding a valid invoice from an active supplier, so registered buyers check invoices carefully. Corrections are made with credit and debit notes, not by editing the original invoice.
In Nafaa
Bills reported through Nafaa's optional tax integration print with the authority's fiscal number and QR code, and the Tax page lists every invoice sent with the authority's answer.
Official source
The Sales Tax Act, 1990 on FBR: Acts, Rules and Ordinances and FBR: Digital invoicing legal provisions. Rates, thresholds and dates change with Finance Acts and S.R.O.s; check the current position with the authority or a tax adviser.
Related terms
- Invoice
An invoice is a document a seller issues to a buyer that lists the goods or services supplied, their prices and the amount due, usually with payment terms.
- E-Invoicing (Digital Invoicing)
E-invoicing is issuing sales tax invoices electronically through a system connected to the tax authority, which validates each invoice and gives it a unique number.
- Credit Note
A credit note is a document a seller issues to reduce what a buyer owes, usually because goods were returned or an invoice was overcharged.
- Input Tax and Output Tax
Input tax is the sales tax a registered business pays on its purchases; output tax is the sales tax it charges on its sales. The business pays the difference.