What is the difference between Invoice and Tax Invoice?

An invoice is a document mainly used to record a transaction. The document provides the record of the sold item and the amount of money involved. An invoice is also known as a bill. The document is used before any payments of the goods or services are made. The information is useful to both the seller and buyer. The seller uses the records to follow up with the buyers for billing. Invoices are useful to keep records of the total amount owed to you by customers.

A tax invoice is a legal document issued to a registered purchaser, (usually not the end consumer), during a sale by a registered seller. Invoices are created in triplicate; one is issued to the buyer while two copies are reserved with the seller. The final copy will be later submitted to the significant government authority.

An invoice is a commercial document provided or issued to a buyer by a seller indicating all purchased items or quantities of products and the amount to be paid on them. This document is usually provided to reveal the amount of money that will be paid on all items or goods purchased. This doesn't only help the buyer have a better knowledge of all the items purchased and the amount to be paid, but it also helps the seller to know what has been sold.

On the other hand, tax Invoice also shares a very similar meaning with an invoice, just that it is not just a commercial document but a legal document issued mostly by authorized sellers to their buyers. However, tax invoices are not usually provided to just ordinary buyers i.e., end-users of a commodity, but to registered buyers that will also sell the items to other people. Although the content of the two documents looks very similar, there's a part that indicates the amount to be paid as tax in the tax invoice, whereas invoices don't have this.