Free Tax Invoice Template

When to use a tax invoice template

A tax invoice is required — not optional — when you are VAT-registered (in the EU, UK, or Australia) or GST-registered (in Canada, Australia, New Zealand, or India) and billing another registered business. The document must show your tax registration number, the applicable tax rate, the tax amount as a separate line, and the total including tax. A standard invoice without these elements is not a valid tax document — your client cannot use it to reclaim input VAT or GST, and you may be in breach of your registration obligations.

If you are below the VAT/GST registration threshold in your country, you do not need a tax invoice — use the basic or freelancer template instead. But once you cross the threshold (currently £90,000 annual turnover in the UK, €100,000 in most EU countries, AUD $75,000 in Australia), every invoice to a business client must be a tax invoice.

What's included

A VAT/GST-ready layout with tax registration number field, explicit tax rate and amount, EUR currency default, and notes pre-filled with registration number placeholder.

• Tax registration number: prominent placement in the notes — replace with your VAT/GST number
• 20% VAT default: standard EU rate; adjust to your local rate (UK 20%, AU GST 10%, CA GST 5%, etc.)
• EUR currency: common for EU-based tax invoices; change to GBP, AUD, CAD, or INR as needed
• Explicit tax breakdown: subtotal, tax amount, and total are all shown separately as required by tax authorities
• B2B billing focus: line items represent professional services commonly subject to VAT

How to customize this template

The most important field to update is your VAT or GST registration number in the Notes section — replace "[VAT No. XX123456789]" with your actual registration number. This is what makes the document a valid tax invoice your client can use for input tax recovery. Set the tax rate to match your local standard rate or the applicable reduced rate. If you are billing a client in another EU country and the reverse-charge mechanism applies, set the tax rate to 0% and add "Reverse charge — VAT to be accounted for by the recipient" to the Notes field. Change the currency from EUR to match your invoicing currency. Update line items to describe your actual services and rates.

What makes a document a valid tax invoice

Tax authorities in VAT/GST countries are specific about what must appear on a valid tax invoice. The document must include: your business name and address, your VAT/GST registration number, the invoice number and issue date, the client's name and address (and their VAT number for EU B2B transactions), a description of the goods or services, the unit price and quantity, the applicable VAT/GST rate, the tax amount shown separately, and the total amount including tax. Missing any of these elements means the invoice does not qualify as a tax document, even if the amounts are correct. This template includes all of them — fill in your specifics and the document will meet the requirements.