Tax compliance is a must if you are doing business. With WeInvoice tax invoice templates, tax accounting is simplified. Also, a business will pay penalties and fines for non-compliance. Failure to pay taxes may also affect the sale and ultimately the profits of your business because it ruins the reputation of your business.
Also, if you fail to comply with the tax authorities of your host country, you are most likely going to receive a lot of scrutinies, which most likely may affect your business operations.
Some just ignore them as unnecessary costs to the business and they want to maximize their earnings.
While this may work in the short run, the costs evaded may be incurred to pay the penalties once the tax authorities discover that you have not been tax compliant. Visit the WeInvoice official website for more information
Other Reasons Why People Avoid Paying Taxes Include
- Lack of integrity among taxpayers
- Low education level among the citizens and the people doing business
- The complexity of the tax system
- High tax rates, and inflation
- A significant informal economy
While these are some of the reasons why people will avoid taxes, the consequences and the cost of tax evasion are high enough not to risk. As a business owner, paying taxes is not only a way of obeying the laws governing the host country of your business but also, it is a corporate social responsibility.
Taxes are used to develop the country and the communities in which we carry out our businesses, therefore, in paying taxes, we are benefiting the communities around us.
How then should we remain compliant and educate the people we do business with on the essence of paying taxes while making them aware of their personal tax obligation? Sending tax invoices to our clients is just one of the ways we can do this.
The tax invoice includes the description of tax, the value of the goods and services sold, the quantity, and the amount of tax charged.
If your business makes a taxable sale to a tax-registered customer, you will need to send that client a tax invoice so that they can claim their tax credits for the purchase.
Your business should charge the various taxes on goods and services, which include, VAT, GST, and HST, and report the tax charged to the government. If you sell to a registered vendor, you send a tax invoice to them so they can get an input tax credit.
A Tax Invoice Contains The Following Details:
- The words Tax Invoice
- The name, contacts, and the address of the seller
- The date the invoice was issued
- The invoice number
- The number of goods and services sold and the price per unit of the goods sold
- The name and address of the buyer
- Tax Identification Number
- Total amount inclusive of then taxes\
- The amount of tax charged on each item
- Payment details
Most people confuse tax invoices with receipts. Though a tax invoice has a lot of similar information with a receipt, these two documents are different. A tax invoice is sent by the vendor to the customer, to show them the amount they owe the seller. At the end of a financial year, the tax invoices are sent to the necessary tax authorities.
Why Do You Need To Send A Tax Invoice To Your Clients?
Well, tax invoices serve different purposes in different countries. Some of the common reasons why a tax invoice is important are:
The date shown on the tax invoice is important as it shows when the input tax should be accounted for.
The tax invoice helps in determining the supplies that should be included in the taxable period.
Tax invoice helps in supporting the registered person’s claim for the deduction of input tax incurred on his standard purchases.
Tax invoice helps to determine the time in which the input tax claim can be made.
The best part about preparing tax invoices is that you do not have to sweat about it. With WeInvoice tax templates, you can prepare tax invoices with ease and without the need of a professional accountant.
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