Issuing correct tax invoices is a legal requirement for GST/VAT-registered businesses. A tax invoice must contain specific information - and without a valid tax invoice, your customers cannot claim input tax credits on their purchases. Understanding the requirements in your country ensures compliance and maintains good relationships with business customers who need valid invoices for their own tax obligations.
Include your business name and GST/VAT registration number
Include the date of issue and a unique invoice number
Include the buyer's details (name and address for invoices over certain thresholds)
Describe the goods or services supplied clearly
Show the quantity and unit price
Show the GST/VAT amount separately (or state that the total includes GST/VAT)
Show the total amount payable including and excluding GST/VAT
Issue the invoice within the timeframe required by your jurisdiction
Businesses in Hong Kong operating under the Profits Tax system must meet these compliance requirements set by IRD:
Not including the GST/VAT registration number
Not showing GST/VAT as a separate line item
Using incorrect or outdated business details
Not issuing invoices within the required timeframe
Not including sufficient description of goods or services
Not having sequential invoice numbering
SortBooks connects to your Xero account and finds transactions sitting in catch-all accounts. AI suggests the right account and tax code, learning from your own past coding. You approve it and SortBooks updates Xero. Reconciled transactions are locked by Xero, so those stay in SortBooks with an Open in Xero link.
AI suggests a category and Profits Tax code for each transaction. You approve it before anything changes in Xero.
Growth and above get a quarterly GST/VAT estimate to check before you lodge with IRD.
Ask about your P&L, cash and who owes you, using live Xero data. Every dollar figure is checked against Xero.
At minimum: your business name and ABN/VAT number, the date, a description of goods or services, the GST/VAT amount, and the total. For invoices over certain thresholds (e.g., $1,000 AUD or GBP 250), you also need the buyer's details.
In most jurisdictions, you must issue a tax invoice within 28-30 days of the taxable supply. Some countries allow customers to request a tax invoice within a certain period even if one was not initially provided.
SortBooks integrates with Xero's invoicing system. While you create invoices in Xero, SortBooks can suggest which transactions match them so you can reconcile in Xero in a click. The AI CFO can also tell you who owes you money.
AI suggests, you approve, SortBooks updates Xero. Try it free for 14 days.