4 minute read
What a tax invoice must show in Australia
The details the ATO expects on a tax invoice, when you need one, and the extra detail for sales of $1,000 or more.
If your business is registered for GST, your customers need a valid tax invoice to claim the GST credits on what they buy from you. Getting the details right the first time saves you reissuing invoices and saves your clients a headache at BAS time.
When you need to issue a tax invoice
You must give a tax invoice when a customer asks for one for a taxable sale of more than $82.50 including GST, and you have 28 days from their request to provide it. Most businesses simply issue a tax invoice for every sale, which avoids the question altogether.
What it must include
For sales under $1,000 including GST, a tax invoice needs to show:
- that it is intended to be a tax invoice, usually with the words "Tax invoice" at the top
- your identity, such as your business or trading name
- your Australian Business Number (ABN)
- the date it was issued
- a brief description of what you sold, including the quantity and price
- the GST amount, or a statement such as "Total price includes GST" when GST is exactly one eleventh of the total
- how much of each item is taxable, where an invoice mixes taxable and GST free items
Sales of $1,000 or more
For sales of $1,000 or more including GST, the invoice must also show the buyer's identity or their ABN.
GST free items on the same invoice
If you sell some items that are GST free, show them clearly so your customer can see which lines carry GST. A simple way is to mark those lines as GST free and show the GST total for the taxable lines only.
Not registered for GST?
If you are not registered for GST, do not charge GST and do not call the document a tax invoice. Issue a plain invoice instead.
How CAQA Ops helps
CAQA Ops titles your invoices "Tax invoice" when your company is registered for GST, shows your business name and ABN, works out GST on taxable lines, marks GST free lines, and has a place for your client's ABN. Companies that are not registered simply switch GST off.
Rules can change. Check the current requirements with the Australian Taxation Office. This guide is general information, not tax advice.