Tax on invoices

Your tax regime

Choose it in Settings › Documents: India GST, UK VAT, EU VAT, UAE VAT, Saudi VAT, US sales tax, or no tax. It decides the title an invoice carries, the registration printed beside your name, how the tax lines are laid out, and whether the total is rounded and written in words. An invoice keeps the regime it was issued under: a change reaches your next invoice and none you have already raised.

If you invoice with GST

Your state code lives in Settings › Documents; the client’s is on the client’s record and becomes the place of supply. The same state gives CGST and SGST in two halves that add back to the tax total; different states give IGST. Once both state codes are known the invoice decides this itself, and until then you choose it.

If you invoice with VAT

The invoice is titled as your regime names it: VAT Invoice in the UK, Tax Invoice in the UAE and Saudi Arabia, Invoice in the EU. It carries your VAT number or TRN and your client’s, one tax line for each rate with the taxable amount at that rate, and the date of supply where the regime asks for one. The total keeps its pence, cents, or fils, and no amount is written in words. A reverse charge prints its sentence and charges no tax; an exempt supply prints the reference you give it. In the UK and the Gulf, an invoice in another currency also states the tax in pounds, dirhams, or riyals at the rate you type; nothing else is converted.

If you invoice with US sales tax

Arrowmics does not work out sales tax. Type the rate your state charges on each line and the invoice prints it as sales tax; the rate is yours to keep right.

Per line

• A tax rate on every line, pre-filled from the defaults in Document settings and editable on the line; under GST an HSN or SAC code too.
• A per-line discount, taken before tax.
• A document-level discount, if you grant one, is spread across the lines in proportion and rounded per line, so the rate-wise summary still adds up to the paisa or the cent.

What the invoice carries

• Both parties’ names, addresses, and registrations (a GSTIN, a VAT number, a TRN), frozen on the invoice when it is created, so a later change to a client’s record does not rewrite an issued invoice.
• A rate-wise tax summary; under GST also an optional round-off to the rupee and the total in words.
• The consignee and the dispatch and delivery references an accountant looks for, and a declaration.
• A PDF, in three named copies under GST, and a share link the client opens without an account.
• A correction as a credit note against the invoice, under the same regime, with a number of its own.

On a quotation

Outside India a quotation shows the tax after its prices, marked as an estimate, and you can switch it off. In India the tax note stays, and the estimate is a switch on the quotation.

Currency

An invoice may be issued in any of the supported currencies. Nothing is converted: the symbol, the grouping, and the words follow the currency the invoice was issued in, and the dashboard says how many invoices its sums leave out.

Not offered

E-invoicing (India’s IRN, Saudi Arabia’s ZATCA, Peppol) is not generated. Export the invoices as CSV or the whole organization as one file for the tool you use for it; the rows carry every figure the invoice shows.