The difference between Invoice and Tax Invoice

Wondering why some invoices say Tax Invoice and others just say Invoice? Officaid automatically labels your invoice based on whether tax is applied, keeping you compliant without extra effort.

What's the Difference?

The label on your invoice depends on whether tax is applied to any line item:

• Invoice — No tax applied to any line items
• Tax Invoice — Tax applied to at least one line item

Officaid handles this automatically. When you add tax to a line item, your invoice becomes a Tax Invoice.

Why Does It Matter?

In some countries, businesses registered for tax must issue a Tax Invoice when charging tax. For example, in Singapore, GST-registered companies are required to include the words "Tax Invoice" on invoices that include GST.

A Tax Invoice serves as proof of the tax charged and is used by your clients to claim input tax credits. Tax authorities may require both you and your clients to keep these documents for a minimum period (in Singapore, at least 5 years).

What's Included in a Tax Invoice?

A proper Tax Invoice typically includes:

• The words "Tax Invoice"
• Your business name and address
• Your tax registration number (e.g., GST registration number)
• Invoice date and number
• Client's name and address
• Description of goods or services
• Tax rate applied
• Total amount excluding tax
• Total tax amount
• Total amount including tax

Officaid includes all of this information automatically when you create an invoice with tax.

Frequently Asked Questions

What's Next?

• Creating Your First Invoice for the basics of invoicing
• Tax Registration Setup to configure your tax settings
• Company Settings to update your business details