Tax Invoice

A tax invoice is an invoice that explicitly documents the tax charged on a transaction—typically VAT (value-added tax) or GST (goods and services tax). Beyond the usual invoice details, it must show your tax registration number, the tax rate applied to each item, the tax amount as a separate line, and the words "Tax Invoice" somewhere on the document. In countries like the UK, Australia, Canada, and across the EU, businesses need a valid tax invoice from you before they can reclaim the tax they paid.

If you're a US-based freelancer, the term may be unfamiliar because the US uses sales tax rather than VAT or GST, and a standard invoice showing sales tax is usually sufficient. But the moment you take on international clients, expect requests for a "tax invoice"—their accountants need one that meets their country's requirements. The exact fields vary by jurisdiction, so check what your client's country mandates (registration numbers and per-line tax breakdowns are the most common additions).