What is an invoice?

Invoices are important business documents that serve as the official record of many transactions.
They can take different forms depending on their context and purpose. An invoice is a document that provides details about the goods or services a seller has provided and the amount the buyer owes.
In addition to being legally binding documents, invoices serve fiscal purposes and are required as proof of a transaction in countries that assess a value-added tax.
Invoices have different uses, including requesting payment, accounting and auditing, VAT reporting, and customs clearance.
Issuing invoices is mandatory in VAT countries for accounting, auditing, and fiscal purposes.
Simplified invoices are allowed for low-value transactions and certain sectors. There are only two types of invoices defined by most countries: invoices and simplified invoices.
A tax invoice or VAT invoice is required for transactions subject to VAT.

Invoice