What is Abbreviated tax invoice?

Most retail sales are to people who will never reclaim the tax. The abbreviated tax invoice is the bill for them. It is shorter than a full tax invoice and does not need the buyer’s details.

The buyer cannot use it to claim input VAT, which is the VAT a business paid on its own purchases. A business customer who wants to claim needs the full tax invoice, and has to give you their registration number. The abbreviated invoice is still numbered, in the same unbroken sequence as every other bill. It also cannot be used for every sale. Above certain values, the full tax invoice is required instead.

At the counter, ask early whether the customer needs a VAT bill, because the rules make it hard to switch afterwards. Confirm the current value limit with the IRD or your accountant.

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