In the business world we sometimes get in dilemma of how to carry out invoicing to the buyer. It is sometimes confusing to determine whether to issue tax invoice or just regular invoice. Let’s us look into these in the broader way.
A tax invoice is an invoice issued by a registered company / person to the registered buyer or purchaser for goods and services. So, what is registered person, these means company registered with Kenya Revenue Authority and has obtained a tax identification number called Personal Identification number as PIN?
A standard invoice is issued by resisted company /person to the non-registered buyer or purchaser for goods or services. Sometimes, even the seller cannot be registered with the Kenya Revenue Authorities. Therefore either one or none has the tax identification number i.e. PIN number. What contains in Tax Invoice.
The following details are usually seen in the Tax Invoice:-
Attached to it is the “Electronic generated receipt” which shows details of all amount and tax amount. Below is the text sample for Tax Invoice.
An Electronic Invoice will contain following details;
By: Daksha Ranpara F.C.C.A., C.P.A.(K)
This newsletter has been prepared for general guidance, and does not constitute professional advice. Accordingly, Ashvin Ranpara & Co, its associates and its employees and agents accept no liability for the consequences for anyone acting or refraining for acting, in reliance on the information contained herein or for any decision based on it. No part of the newsletter may be reproduced or published without prior written consent.