While most parents around the country are engaged in last minute back to school shopping, the Fiji Revenue and Customs Service is calling on people to ask for proper receipts and invoices for every purchases made.

This week we will look at what tax invoices are and what details it should contain when issued to a customer.

What is a Tax Invoice?

Tax Invoice is a document that VAT registered persons issue to their customers when they make a sale.

For VAT registered recipients of a good or service, it is the main source document or evidence they must have to support a claim for input tax on business expenses.

When is tax invoice issued?

VAT registered persons are re­quired to issue tax invoices when the supply of goods and services takes place or after the delivery of goods or services.

Features of a Tax Invoice

A Tax Invoice shall contain the following particulars:

• the words “Tax Invoice” marked clearly in a prominent or notice­able place;
• the name, address and Tax Identification Number (TIN) of the registered person making the supply;
• the name and address of the re­cipient;
• na serial number;
• date the tax invoice was issued;
• a description of the goods and services supplied;
• the quantity or volume of the goods and services supplied;
• the VAT exclusive price, the amount of VAT added to that price and the VAT inclusive price shown separately.

Information required on all tax invoices

Tax invoices for supplies at the retail level or supplies up to $100 will show less information and the customer’s name is not required.

These types of tax invoices show the following:

• the words “Tax Invoice” marked clearly in a prominent or notice­able place;
• the name, address and Tax Iden­tification Number (TIN) of the supplier;
• date the tax invoice was issued;
• a description of the goods and services supplied;
• The total price and a statement that the price is VIP

What if a registered person issues a receipt without the features of a tax invoice?

The recipient must inform the registered person to furnish him or her with a proper invoice that contains all of the features of a tax invoice as provided in the regula­tion.

If the registered person know­ingly issues such invoice, he or she would have thus committed an offence under the VAT Act and may be liable for a penalty.

What are some examples of docu­ments that are not tax invoices?

The following are not tax invoic­es:

• An Invoice that does not have the word ‘Tax’ in front of the word ‘Invoice’
• pro-forma invoices;
• invoices that state ‘this is not a tax invoice’;
• statements;
• delivery notes;
• orders;
• letters, emails or other corre­spondence;
• quotations;
• sale and purchase agreements;
• documents/receipts that do not have any of the features of a tax invoice

Can a registered VAT trader claim for input tax paid even though the supplier ‘s document does not meet all of the tax invoice requirements?

No.

The VAT registered trader can­not claim for the input tax paid and it is his or her responsibility to inform the Supplier to amend its Tax Invoice accordingly.

Can a registered person request for a copy of tax invoice in cases where they have lost it?

Yes, the registered person can re­quest for a copy.

In this case the supplier provid­ing a copy will have to clearly mark the copy as “copy only”.

How can customers identify whether a person they are dealing with is registered for VAT or not?

Persons that are registered for VAT are issued with a Certificate of Registration that has to be dis­played in the business premises where the customers can see it clearly.

Those that are not registered for VAT will not have this. Persons that are registered will display their prices as inclusive of VAT and persons that are not regis­tered, will not do this.

A registered person will issue a Tax Invoice whereas the non-registered persons will issue an Invoice.

The VAT Act allows FRCS to re­lease information about the VAT registration status of any person.

Feedback: maraia.vula@fijisun.com.fj