What is Sales Tax Invoice?

A Sales tax invoice functions as an official document that records a business transaction between a buyer and a seller. It provides a detailed breakdown of the sale, outlining the quantity and cost of the goods or services, any applicable taxes, and the total amount owed. Essentially, it serves as documented proof of the financial transaction occurring between the parties involved.

How can I generate tax invoice?

An invoice can be generated using software (i.e. SAP, Oracle, Quickbooks, Foxpro or any other specialized accounting software), although an invoice can also be generated online. However most of the companies use their internal formats.

A Tax Invoice must contain the followings as required under sub-section (1) Section 23 of Chapter-IV of Sales Tax Act, 1990:

23. Tax Invoices. – (1) A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars [, in Urdu or English language,] namely: –

(a) Name, address and registration number of the supplier;

(b) Name, address and registration number of the recipient and in case of supplies by manufacturer or importer to unregistered distributor, the NIC or NTN of such unregistered distributors, as the case may.]

(c) Date of issue of invoice;

(d) Description [including count, denier and construction in case of textile yarn and fabric,] and quantity of goods;

(e) Value exclusive of tax;

(f) Amount of sales tax; and

(g) Value inclusive of tax:

How do I create a sales invoice online?

Sales invoice can be generated online using many free websites and software, if you want to generate sales invoice online simply search on google chrome (i.e. free sales invoice generator).

How do I verify an FBR invoice?

An invoice can be verified if the said invoice contains all the particulars as mentioned above further NTN and STRN inquiry should be performed to verify the legal status of the invoice issuer, if NTN or STRN is not available on the invoice then said invoice issuer is either not registered or the invoice is fake.

Conclusion

In conclusion, understanding and managing sales tax in Pakistan is crucial for businesses. Whether you’re creating invoices or verifying FBR documents, staying informed and compliant is key to a smooth financial operation.

In short, if you need help with sales tax in Pakistan, Scounts is here for you. We make invoicing easy and help your business with taxes. Choose Scounts for simple and effective solutions