Also, the Finance Act provides a standard VAT rate of 7.5% chargeable on all taxable goods and services. The Value Added Tax Act regulates the content and form of an invoice, which must be strictly adhered to by vendors and suppliers of goods and services. If upon the receipt of the invoice, the recipient fails to make a payment, the sender can send a letter demanding payment for good(s) sold or service(s) rendered.

It can also be used by service providers or independent contractors who are required to send their invoices before receiving payment for services rendered.Īfter completing this document, the sender is required to sign the document and deliver it to the recipient, who will acknowledge receipt for record purposes. This document should be used by individuals or businesses to demand payment for goods sold or services rendered. This document can be attached to a Cover Letter which is also available for download.

In this document, the sender of the invoice is required to provide the names and address of the sender and recipient, the invoice or reference number, the date the invoice was sent, a clear description of the goods or services, the quantities of goods sold, price of the goods or services and payment method. It also serves as evidence in a monetary demand claim to illustrate that goods or services were provided, and payment was demanded. An invoice is a vital aspect of the audit trail of the vendor's business and failure to issue an invoice is a violation of the law.Īn invoice is used by a vendor or service provider when goods or services have been sold to clients or customers on credit. The Invoice is a bill of charges sent by an individual or business relating to a business transaction, which indicates the specific details of the goods or services sold, the quantity of goods sold, and applicable VAT.

Invoice sample format in word