Default Tax Invoice Format for Compliance in TallyPrime 6.2: A Complete Guide

Published on: 26-08-2025

Default Tax Invoice Format for Compliance in TallyPrime 6.2: A Complete Guide

TallyPrime is one of the most popular business management and accounting software solutions for small and medium-sized enterprises. Every release brings new features to make compliance, reporting, and business operations easier. In the latest update, TallyPrime 6.2, one of the key highlights is the introduction of a Default Tax Invoice Format (Format 2) that aligns with government-recommended templates.

This feature is especially helpful for businesses that need to remain compliant with GST in India and VAT in GCC countries, where proper invoice formats are mandatory for tax authorities. In this article, we will explain what this new feature means, why it matters, and how you can implement it in your own TallyPrime setup.

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Why Invoice Format Matters for Compliance

An invoice is not just a sales document—it is a legal and tax compliance document. Tax authorities in many regions (including India and the GCC) prescribe specific invoice formats to ensure that:

• All mandatory fields such as GSTIN, VAT registration number, HSN/SAC codes, and tax amounts are included.
• The structure is standardized for easier verification during audits.
• Businesses maintain transparency in reporting sales and tax liabilities.

Non-compliance with invoice formats can lead to penalties, rejection of tax credits for customers, or even scrutiny by tax departments.

By introducing Invoice Format 2 as the default, TallyPrime 6.2 ensures that you start with a template that is already in line with regulatory requirements.

What’s New in TallyPrime 6.2 Tax Invoice Format

The two formats now available in TallyPrime 6.2 are:

1. Format 1 (Classic Layout) – This is the traditional invoice style that long-time Tally users are familiar with. It is simple, compact, and widely used in India.
2. Format 2 (Compliance-Ready Layout) – This is the newly introduced default format. It includes clearer sections for tax breakup, bilingual/Arabic support (for GCC countries), and a structure aligned with what tax authorities expect.

Key Highlights of Format 2:

• Separate sections for taxable value, tax percentage, and tax amount.
• Better alignment for multiple tax rates within the same invoice.
• Default layout recommended by GCC VAT authorities.
• Compatibility with bilingual (English + Arabic) exports in GCC.

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Step-by-Step Guide to Using the Default Tax Invoice Format in TallyPrime 6.2

Step 1: Enable Tax Features

1. Open TallyPrime.
2. From the Gateway of Tally, press F11: Features.
3. Go to Statutory & Taxation.
4. Enable GST (Goods & Services Tax) or VAT depending on your country.
5. Provide your GSTIN / VAT Registration details.

This ensures that all tax fields become available in your vouchers and invoices.

Step 2: Create a Sales Voucher

1. Go to Gateway of Tally > Vouchers > Sales.
2. Enter customer details, items, quantities, and applicable tax rates.
3. Save the voucher.

Step 3: Print the Invoice

1. After saving the voucher, press Alt + P (Print).
2. TallyPrime will open the Print Configuration screen.
3. Look for the option “Invoice Format”.
4. Choose Format 2 to use the new compliance-ready default layout.

(If you want to continue with the old style, you can still select Format 1.)

Step 4: Save Format 2 as Default

1. Once you select Format 2 in the print screen, press Ctrl + A to save this configuration.
2. From now on, every time you print an invoice, Format 2 will be applied automatically.

Step 5: Enable Bilingual/Arabic Option (For GCC Users)

If your business deals with clients in the UAE, Saudi Arabia, or other Arabic-speaking regions:

1. In the same Print Configuration screen, locate the option for Invoice Language.
2. Select Arabic or English + Arabic.
3. Press Ctrl + A to save settings.

Your invoices will now be printed/exported in bilingual format, ready to be sent to customers or shared via email/WhatsApp.

Benefits of Using Default Invoice Format in TallyPrime 6.2

1. Regulatory Compliance

Using Format 2 ensures that invoices are structured according to GST/VAT authority guidelines, reducing chances of rejection or disputes.

2. Time Savings

No need to manually configure layouts—TallyPrime 6.2 automatically applies the recommended format.

3. Flexibility

You can easily switch back to Format 1 if your business prefers the traditional look.

4. Global Compatibility

With Arabic and bilingual support, businesses in the Middle East can meet local documentation needs seamlessly.

5. Professional Appearance

The new format makes invoices look cleaner and more standardized, which reflects positively on your brand.

Practical Tips for Businesses

• Test Both Formats: Before finalizing, print a few invoices in Format 1 and Format 2 to see which works best for your business and clients.
• Customize Logos: Add your company logo to the invoice to maintain brand identity while staying compliant.
• Use WhatsApp Sharing: TallyPrime 6.2 allows quick sharing of invoices in PDF format directly via WhatsApp, which is very useful for fast client communication.
• Stay Updated: Tally frequently updates its software in response to tax law changes. Always keep your TallyPrime updated to avoid compliance risks.

Conclusion

The Default Tax Invoice Format (Format 2) in TallyPrime 6.2 is a significant step towards simplifying compliance for businesses. By aligning invoice layouts with the latest government recommendations, Tally ensures that users can focus on business operations without worrying about formatting errors or compliance failures.

For Indian businesses, this means smoother GST reporting, while for GCC businesses, the addition of Arabic and bilingual invoice support makes documentation more professional and customer-friendly.

Whether you are a small trader, a service provider, or a medium-sized enterprise, upgrading to TallyPrime 6.2 and using the default tax invoice format will save time, enhance compliance, and strengthen customer trust.

If your business hasn’t yet explored this new feature, now is the right time to make the switch. With just a few clicks, you can ensure that every invoice you issue is compliance-ready, professional, and globally acceptable.