A tax invoice is a document which is prescribed in the VAT Act (Section 20). A registered operator making a taxable supply is required to provide the recipient with a tax invoice within thirty days of the supply being made.
- A tax invoice is a basis for registered operators to claim Input Tax Credit.
- Only one tax invoice should be issued for each taxable supply.
- Any replaced tax invoice should be clearly marked ‘copy’.
Features of a valid tax invoice
- The words “tax invoice” in a prominent place,
- The name, address and registration number of the supplier,
- The name, address and VAT number of the recipient,
- An individual serialized number and the date upon which the tax invoice is issued
- A description of the goods or services supplied,
- The quantity or volume of the goods or services supplied.
Price and VAT charged
There are three methods allowed for reflecting the price and VAT as follows:
- Method 1- The amount excluding VAT, plus the VAT charged and the total amount including VAT
- Method 2 – Where VAT is included in the final price, there should be a statement that VAT is included and the rate of tax
- Method 3 – Where VAT is included in the final price, the amount charged including VAT and the amount of VAT charged.
Additionally, according to Zimra public notice number 40 of 2020, registered operators are also encouraged to request for these tax invoices in the currency of transaction. This means that if you have paid in RTGS you should be issued with an RTGS invoice and if you have paid in foreign currency, the invoice should be in foreign currency
TAKE NOTE OF THESE AS A VAT REGISTERED OPERATOR