POLICY 19: VAT AND INVOICES

This policy forms the guiding principle under the Value-Added Tax Act as it relates to invoices.
According to the section 28 (1) of VAT Act of 2005, it is mandatory that a registered person issue a tax invoice for every taxable supply (this includes goods or services taxed at 16% or 0%), made to another person (whether the recipient is registered or not). Schedule III, paragraph 1 provides that a tax invoice must contain the following information: 
            (a)        the words "TAX INVOICE" must be placed clearly on top;
            (b)        the name, address, and VAT registration number of the registered person making the sale;
            (c)      for a supply to registered recipient, the name, address and VAT registration number of the recipient of the supply; 
            (d)        the individualized serial number and the date on which the tax invoice is issued.  This is a unique number given to each tax invoice;
            (e)        a description of the goods or services sold or rendered;
            (f)         the quantity or volume of the goods or services sold or rendered; and
            (g)        the total amount of the tax charged, the cost for the sale, and the total cost including tax.
Additionally, if goods and services supplied on the same invoice are zero rated (0%) or exempt from VAT, then this should be indicated on the invoice.

Section 28 (2) of the Value-Added Tax Act provides that a registered supplier is authorised to issue a sales invoice where the taxable supply is paid for in cash and does not exceed ten thousand dollars ($10,000). Regulation 5 of the VAT Act states that a sales invoice should include the following information:

1. the name, address, and VAT registration number of the registered person making the sale;
2. a description of the  goods sold or services rendered;
3. the price of the sale;
4. the amount of VAT if separately stated; and
5. the issue date of the sales invoice.

Tax and sales invoices serve as evidence of taxable supplies made by registered persons and are necessary for audit purposes with respect to claiming VAT refunds. A supplier who fails to provide a tax invoice as required or provides something other than tax invoice commits an offence under section 67 of the VAT Act.   

Persons who have queries with reference to VAT are encouraged to write to the Commissioner, VAT and Excise Tax Department, 210 ‘E’ Albert and Charlotte Streets, Bourda for clarification.