Operating an online store carries various obligations, which include mastering financial records, particularly receipts alongside tax invoices. New sellers face confusion about the distinction between receipts and tax invoices (ใบกำกับภาษี, which is the term in Thai) while seeking correct issuance methods. Foreign customers asking for receipts lead you to this guide, which will help you understand what a tax invoice is, who can issue it, and how to create one online.
What is a Tax Invoice?
A VAT-registered business can issue a tax invoice to a purchaser to prove transactions between them. The document serves as a transaction verification tool for goods or service purchases while including details about the VAT imposed on the purchase. Every VAT registrant must use this vital document to prove payment and tax collection activities to meet tax requirements.
VAT-registered businesses must generate tax invoices as a necessary document, which they need to issue to buyers in all transactions regardless of the purchase value. A tax invoice contains the following particular points:
- Name and address of the seller and buyer
- The parties need to provide their tax identification numbers to each other.
- Invoice number and date
- Description of goods or services
- Amount charged and VAT percentage
Can Individuals Issue a Tax Invoice?
VAT-registered individuals cannot create tax invoices to provide to clients of their business. Among them, only VAT-registered businesses that possess approved tax identification numbers can create tax invoices to provide to their customers. The VAT registration threshold determines whether an online seller needs to enroll and issue tax invoices because exceeding this threshold requires registration.
How to Issue a Tax Invoice Online?
Digital solutions simplify tax invoice generation, which now makes online selling operations more efficient. Businesses that use the platform automatically produce receipts and tax invoices for their operations. Here’s how it works:
- Access the online bill and conduct the payment procedure following regular steps.
- The system requires you to input customer information, which should include the tax identification number when customers need a full tax invoice.
- Customers receive tax invoices from the system after its automatic generation process is completed.
The automated process delivers both precise results and time-saving advantages and enhances official tax documentation management.
Conclusion
Businesses engaged in Internet sales need to understand tax invoices because of their fundamental importance to the operation. The purposes behind tax invoices and receipts remain distinct from each other. All businesses that have VAT registration must provide a tax invoice to their customers. Digital invoice generation tools simplify tax invoice creation, thus providing you with both tax compliance and efficient management of business transactions. Businesses with digital systems in place can easily handle taxes without any difficulties for both new sellers and those looking to refine their invoicing operations.