What a tax invoice must show
For a taxable sale under $1,000, the ATO requires seven things:
- that the document is intended to be a tax invoice, usually the words Tax Invoice at the top;
- your identity: your name or business name;
- your ABN;
- the date it was issued;
- a brief description of what was sold, including the quantity and the price;
- the GST amount payable or, if GST is exactly one-eleventh of the total, the statement "Total price includes GST";
- the extent to which each item is taxable, when some are GST-free.
For a sale of $1,000 or more, add the buyer's identity or ABN. An invoice number isn't on the ATO's list, but you'll want one anyway: it's how you and your accountant find the thing again.
Two ways to show the GST
- Exclusive layout. Line prices without GST, a GST line, then the total. Businesses expect this one.
- Inclusive layout. Line prices with GST inside them, the total, and the words "Total price includes GST". Allowed only when every item is taxable, so that GST is exactly one-eleventh of the total. Households find this one easier.
If an invoice mixes taxable and GST-free items (a GST-free export alongside local work, say), mark which lines include GST and show the GST amount.
What an ordinary invoice shows
Not registered for GST? Your invoice carries everything above except the GST: title it Invoice, show your name, ABN, the date, a number, the description and the total. Don't write "tax invoice" anywhere on it. A line such as "No GST has been charged" saves the question. Businesses that aren't registered don't have to issue invoices at all, but you'll want the paper trail, and your customer will want something to pay from.
When you have to provide one
- A customer can ask for a tax invoice for any taxable sale of more than $82.50 (including GST), and you must provide it within 28 days. At or below $82.50 they can claim the GST from a receipt.
- Sales of $1,000 or more need the buyer's identity on the document, so ask for the business name up front.
- Keep copies for five years. A PDF is fine.
Worked example
The same job, from a registered and an unregistered designer.
| Registered | Not registered | |
|---|---|---|
| Heading | Tax Invoice | Invoice |
| Logo design | $2,000.00 | $2,000.00 |
| GST 10% | $200.00 | — |
| Total | $2,200.00 | $2,000.00 |
| Footer | ABN 12 345 678 901 | ABN 12 345 678 901 · No GST has been charged |
Both are valid. Only the first lets the client claim $200 back.
Quotes and receipts aren't tax invoices
A quote is an offer, and a receipt proves payment. Neither replaces a tax invoice for GST purposes, although a paid tax invoice does double as a receipt. If a customer asks you for "a GST receipt", a tax invoice marked Paid is what they mean.