VAT-REGISTERED TAXPAYERS – CLARIFICATION ON TAX INVOICES AND PROFORMA INVOICES FOR INPUT TAX CREDIT CLAIMS

FRCS wishes to provide clarification to all VAT-registered individuals and businesses regarding the appropriate use of Tax Invoices and Proforma Invoices for the purpose of claiming Input Tax Credits.

 

Tax Invoices

Under Section 39 of the Value Added Tax (VAT) Act 1991, only a Tax Invoice issued by a VAT-registered person qualifies for the claiming of Input Tax Credits. A Tax Invoice is a formal document provided by a VAT-registered supplier for goods or services subject to VAT, and it serves as the basis for the purchaser to claim input tax.

To be valid for input tax credit purposes, a Tax Invoice must meet the specific requirements outlined in Regulation 3 of the VAT Act 1991. Taxpayers are strongly advised to ensure that all Tax Invoices used for claims are compliant with these provisions.

 

Proforma Invoices

A Proforma Invoice is a preliminary document that outlines the estimated costs and details of goods or services prior to the finalisation of a sale. It is important to note that a Proforma Invoice does not constitute a Tax Invoice and cannot be used to claim Input Tax Credits.

To avoid confusion, all Proforma Invoices must be clearly labelled as “Proforma Invoice” and should not be submitted for VAT input claims. FRCS encourages all VAT-registered taxpayers to familiarise themselves with the relevant provisions of the VAT Act 1991 to ensure compliance and avoid disallowed claims.

Last Updated - February 4, 2026

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VAT-REGISTERED TAXPAYERS – CLARIFICATION ON TAX INVOICES AND PROFORMA INVOICES FOR INPUT TAX CREDIT CLAIMS

FRCS wishes to provide clarification to all VAT-registered individuals and businesses regarding the appropriate use of Tax Invoices and Proforma Invoices for the purpose of claiming Input Tax Credits.

 

Tax Invoices

Under Section 39 of the Value Added Tax (VAT) Act 1991, only a Tax Invoice issued by a VAT-registered person qualifies for the claiming of Input Tax Credits. A Tax Invoice is a formal document provided by a VAT-registered supplier for goods or services subject to VAT, and it serves as the basis for the purchaser to claim input tax.

To be valid for input tax credit purposes, a Tax Invoice must meet the specific requirements outlined in Regulation 3 of the VAT Act 1991. Taxpayers are strongly advised to ensure that all Tax Invoices used for claims are compliant with these provisions.

 

Proforma Invoices

A Proforma Invoice is a preliminary document that outlines the estimated costs and details of goods or services prior to the finalisation of a sale. It is important to note that a Proforma Invoice does not constitute a Tax Invoice and cannot be used to claim Input Tax Credits.

To avoid confusion, all Proforma Invoices must be clearly labelled as “Proforma Invoice” and should not be submitted for VAT input claims. FRCS encourages all VAT-registered taxpayers to familiarise themselves with the relevant provisions of the VAT Act 1991 to ensure compliance and avoid disallowed claims.

Last Updated - February 4, 2026

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