What Does a Tax Invoice Look Like? Key Elements & Sample Layout (2026)
If you've ever received or created an invoice that says "TAX INVOICE" in big letters at the top, you might have wondered, what's the difference, and why does it matter?
A tax invoice is a special type of invoice required in countries with VAT, GST, sales tax, or similar systems. It serves two main purposes:
It allows the buyer (usually a business) to claim input tax credits or deductions.
It helps the seller report and remit the correct tax amount to the authorities.
Unlike a regular commercial invoice (used for general sales, international trade, or simple billing), a tax invoice must include specific tax-related details and wording to be legally valid for tax purposes.
In this guide, we'll show you exactly what a tax invoice looks like, the must-have elements, a clear sample layout, and how to create one quickly and compliantly using a free tool.
If you're registered for VAT/GST and selling to another registered business, you almost always need to issue a tax invoice.
Overall Look & Layout of a Tax Invoice
A typical tax invoice is
Clean and professional (single page, A4/letter size)
Easy to read (clear fonts, good spacing, bold totals)
Structured in standard sections
Common visual structure:
Header (top 20%):
Large, bold "TAX INVOICE" title
Your logo (left or centre)
Your business name, address, and contact info
Your tax registration number (VAT/GST/TIN/ID)
Invoice Details (top-right or below header):
Invoice number (unique & sequential)
Issue date
Due date
Bill To / Buyer Section (left or right column):
Client/business name
Address
Tax ID (if provided)
Itemized Table (main body, ~50% of page): Columns usually include:
Description of goods/services
Quantity / Hours
Unit price / Rate
Tax rate (%)
Tax amount
Line total (including tax)
Totals Section (bottom of table):
Subtotal (before tax)
Total tax amount
Grand total (including tax) – usually bold and large
Footer (bottom 10–15%):
Payment terms & methods
Bank details / PayPal / other instructions
Optional: Thank you note, late fee policy, reference to contract
Essential Elements Every Tax Invoice Must Include
These are the core fields required in most VAT/GST systems (exact rules vary by country—always check local tax authority guidelines):
The words "TAX INVOICE" are clearly displayed at the top
Seller's full legal name, trading name (if different), physical address
Seller's tax registration number (VAT/GST/TIN)
Buyer's name and address
Buyer's tax registration number (required in many B2B cases)
Unique sequential invoice number
Date of issue
Date payment is due (or terms like "Net 15")
Detailed description of goods or services supplied
Quantity or volume of goods/hours of service
Unit price excluding tax
Applicable tax rate(s)
Tax amount payable per line
Total tax amount
Total amount payable (including tax)
Payment terms and methods
Optional but recommended:
Your logo and branding
Reference to the purchase order/contract
Thank-you message or referral request
How to Create a Tax Invoice Quickly & Compliantly
You don't need expensive accounting software. A good free tool can handle custom tax rates, itemized lines, and professional layouts in minutes.
GenerateInvoice.net is perfect for this:
20+ templates (choose clean, professional ones)
Fully customizable tax fields (add your rate, show per line or total)
Auto-calculations for subtotals, tax, and grand total
Multi-currency support
Instant PDF download + shareable link
Item library for recurring services
Browser-based, privacy-first (no forced signup for basics)
Steps:
Pick a template
Add your details and tax ID
Enter client info + their tax ID
Add line items, set tax rate
Customize terms & payment methods
Download PDF or share link
Done in under 2 minutes.
Final Thoughts
A tax invoice looks like a regular invoice but with extra emphasis on tax compliance: the "TAX INVOICE" header, clear tax breakdowns per line, tax IDs, and proper wording. Getting it right protects both you and your client during tax time.
Need to issue one today? Head to https://generateinvoice.net, select a template, add your tax details, and create a professional tax invoice for free—no card, no hassle.