Sales Tax Instructions

Sales Tax Instructions, 2009
There are certain conditions covering the content of the sales tax invoice issued when you
make a taxable supply. The invoice must contain the following information:
• a serial number
• the date of issue of invoice
• your name, address and sales tax registration number
• the name and address of the customer
• a description of the goods or services, including the quantity,
the amount payable- excluding sales tax and the rate of tax
• the gross amount payable, excluding tax
• the rate of discount if, offered
• the total amount of sales tax chargeable.
If more than one type of goods or services are included in the invoice, you must show the
quantity, the amount payable, the rate of sales tax and the amount of tax for each type.
All amounts must be expressed in Rupees.
You must keep a copy of each sales tax invoice.
What does ‗time of supply‘ mean?
This is the time or date when the supply of goods or services is treated as taking place.
This is the ‗tax point.' You must account for sales tax in the return period and at the rate
of sales tax in force when the tax points occurs.
How do I work out the tax point?
If you supply goods, the tax point will be the date.
• you send the goods to your customer, or the date they take
them away or when any consideration is received
additionally
• you make the goods available for your customer to use, if
they are not sent or taken away.
• for associated persons when you make the goods available.
If you render services, the tax point will be the date when the service to be performed is
completed.
However, if you issue a tax invoice or receive payment before the goods or services are
sent, taken away or completed, as the case may be, the tax point changes. It becomes the
date when the invoice was issued or the payment was received.
REMEMBER: Sales Tax Invoices are important. To issue a tax invoice, you must
send it or give it to your customer. It is not enough merely to prepare it.
If your customers are registered for Sales Tax, they may be able to claim a credit for
the tax you have charged them.