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An invoice is basically referred to as the tax invoice. It is a document issued by a provider of products or services to the purchaser. It serves as a record of purchase or proof of transaction. You will need a tax invoice if the claim is more than $82.50 (including Goods and Services Tax or GST).
The customer must request for the tax invoice within thirty (30) days from the service of the products or materials or from when the customer receives a bill. The tax invoice must be provided within twenty-eight (28) days from the customer’s request
As a subcontractor or a supplier, you should specify the quantities and costs of the used products or services in the invoice. The information the invoice contains can vary depending on what has been used, the type of transaction, and the preferences of the purchasing company.
Serving a tax invoice plays a vital part in the Security of Payment process.
The terms INVOICE and TAX INVOICE are the same. It is a document that contains the quantities and costs of the used products and services.
A tricky question! The answer is it can be.
Both of these terms are somewhat related to each other since a tax invoice can also be a payment claim and vice versa.
The main difference is that a tax invoice is required to be given after a payment is received whilst a payment claim is necessary to be given prior to receiving the payment.
Note: A payment claim is a document that identifies construction work and related goods and services. It is used and made to request for payment.
A payment schedule is a list of dates stating when payments will be made by one party to another. The date usually follows what is specified under the terms of the contract.
The payment schedule also states the amount the customer deemed to be payable to the supplier. It should include the reasons for the difference of the amounts if the customer schedules a lesser amount.
Note: Don’t get confused. A payment schedule is given in response to a payment claim.
First, you need to issue a payment claim. Wait until the respondent serves a payment schedule. Then upon receiving the receipt of a payment schedule, you can then issue a tax invoice.
Note: Identifying these terms correctly can lead to getting the right amount of payment on time.
For a tax invoice to be valid, it must contain at least seven significant information. The invoice requirements differ based on the value of the invoice and what is being sold.
Just a little reminder, the tax invoice is normally created by the providers of goods and services. It must contain at least seven important details.
In some special cases, the recipient of the construction goods or services may create the tax invoice and send it to the supplier. This is called Recipient Created Tax Invoices (RCTI).
After receiving the receipt of the payment claim, the payer will now create the invoice.
The written agreement can be a separate document.
In some special cases, the purchaser can create a tax invoice. This is called as the Recipient Created Tax Invoices (RCIT).
As a part of the Security of Payment process, you should serve a tax invoice. There are multiple templates to use as the basis for your tax invoice. However, there is a general arrangement of the details on your invoice.
The header basically contains the information of your construction business.
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