Difference Between Tax Invoice And Retail Invoice

Difference Between Tax Invoice And Retail Invoice

The major dissimilarities between tax invoice and retail invoice can be highlighted as follows:

1. Introduction

Tax Invoice: Invoice generated and issued by a company or supplier to another distributor or supplier that includes amount of tax payable.

Retail Invoice: Invoice generated by a seller to a customer showing the total amount of product sold.

2. Issuer

Tax Invoice: Producer or registered supplier or distributor

Retail Invoice: Registered distributor or retailer

3. Receiver

Tax Invoice: Registered distributor or supplier

Retail Invoice: Final customer

4. Resale

Tax Invoice: Products are sold to other suppliers , distributors or dealers.

Retail Invoice: Products are sold to the ultimate customers

5. purpose/Objective

Tax Invoice: Availing tax credit or relief

Retail Invoice: To provide proof of sale

6. Number Of Copies

Tax Invoice: Three copies are prepared (for company, distributors and for tax authorities)

Retail Invoice: Two copies are produced (For seller and for buyer)

7. TIN Number

Tax Invoice: It includes tax identification number

Retail Invoice: It does not contain tax identification number

8. Registered Or Not

Tax Invoice: Both provider and receiver of tax invoice must be registered under the Tax Act of the country,

Retail Invoice: Provider(distributor or supplier) of retail invoice should be registered under the Tax Act.

9. Legality

Tax Invoice: It is a legal document and accepted by the tax authorities.

Retail Invoice: It may not be accepted by tax authorities.

Tax Invoice Vs Retail Invoice (Comparison Chart)

Basis	Tax Invoice	Retail Invoice
Introduction	Invoice issued by a company to distributor or supplier that shows the amount of tax payable	Invoice issued by a seller to customer that shows total amount of goods sold
Issuer	Producer/Supplier	Distributor/Retailer
Receiver	Distributor/Retailer	Customers
Resale To	Suppliers/Dealers	Final Customers
Purpose	Availing tax credit or tax relief	Providing proof of sale
Copies Prepared	Three	Two
TIN Number	Included	Not included
Registration	Issuer and receiver  should be registered as per the Tax Act.	Issuer should be registered under the Tax Act.
Acceptance	Accepted by tax authorities	May not be accepted

I hope this post is helpful to understand the difference between tax invoice and retail invoice and to make comparison between them.