Tax invoices¶

A tax invoice is the document you generally need to hold before you can claim a GST credit for something you bought. It is not just any invoice — it has to show a set of details so the Australian Taxation Office (ATO) can see the GST in the sale.

If you are registered for GST and you make a taxable sale, you also issue tax invoices to your own customers. So most GST-registered businesses both receive tax invoices and send them.

In one line

A tax invoice is the document you generally need to claim a GST credit, and it must show a set of required details including the seller's ABN and the GST amount.

Why this matters¶

The ATO says you cannot claim a GST credit for a purchase over the low-value amount unless you hold a tax invoice. If your supplier's document is missing details, it may not count as a valid tax invoice — and your credit could be knocked back. Knowing what a tax invoice must show helps you check the ones you receive and send.

What you will learn¶

What a tax invoice is and why you need one
The details a valid tax invoice must show
How a tax invoice differs from an ordinary invoice

Understanding the concept¶

When you need one. The ATO says you must hold a tax invoice to claim a GST credit for a purchase that cost more than $82.50 (including GST). For purchases of $82.50 or less, you do not need a tax invoice, but you should still keep a record such as a receipt.

What a valid tax invoice must show. For a taxable sale of less than $1,000, the ATO says a tax invoice must show:

that the document is intended to be a tax invoice
the seller's identity (their name or business name)
the seller's Australian business number (ABN)
the date the invoice was issued
a brief description of what was sold, including the quantity and the price
the GST amount payable — this can be shown separately, or if the GST is exactly one-eleventh of the total, as a line saying "Total price includes GST"
how much of each sale on the invoice is a taxable sale.

Sales of $1,000 or more. The ATO says that for a sale of $1,000 or more, the tax invoice must also show the buyer's identity or the buyer's ABN. So a higher-value tax invoice needs one extra detail — who the buyer is.

Invoice versus tax invoice. These are not the same. The ATO explains that an ordinary invoice simply tells someone they need to pay. A tax invoice is a special document that also lets the buyer claim a GST credit. Only a business registered for GST issues tax invoices — if a seller is not registered for GST, their document should not be called a "tax invoice".

For accountants & bookkeepers

The required-particulars for a tax invoice sit in the GST law and the ATO's guidance. Where a document is missing a detail, the Commissioner has a discretion in some cases to treat it as a valid tax invoice, but the safe path is to obtain a compliant one. Recipient-created tax invoices are a separate arrangement with their own conditions. A tax invoice that mixes taxable and non-taxable items must clearly show which items are taxable.

Example¶

Jordan is a plumber registered for GST. He buys $330 of fittings (including $30 of GST) from a supplier. The supplier hands him a document headed "Tax invoice" showing the supplier's name, their ABN, the date, a description of the fittings, and the GST amount. Because the purchase is over $82.50 and Jordan holds a valid tax invoice, he can claim the $30 GST credit.

Later, Jordan buys a $1,650 hot-water system (including $150 of GST). Because this sale is $1,000 or more, the tax invoice must also show Jordan's identity or his ABN. He checks that his business name is on the invoice before he files it.

Common mistakes¶

Treating any receipt as a tax invoice — a valid tax invoice must show the required details, including the seller's ABN and the GST amount.
Forgetting that a sale of $1,000 or more also needs the buyer's identity or ABN.
Calling a document a "tax invoice" when the seller is not registered for GST.
Claiming a GST credit for a purchase over $82.50 (including GST) without holding a tax invoice at all.

How this works in myaccountant¶

In the app — when you record a purchase, you can attach the tax invoice so it is kept with the transaction. When you raise a sale as a GST-registered business, myaccountant produces a tax invoice for your customer with your business details and the GST amount shown.

Key points¶

A tax invoice is the document you generally need to claim a GST credit.
You need one for a purchase over $82.50 (including GST).
A valid tax invoice shows set details, including the seller's ABN, the date and the GST amount.
A sale of $1,000 or more must also show the buyer's identity or ABN.
An ordinary invoice asks for payment; a tax invoice also lets the buyer claim a GST credit.
Only a GST-registered seller issues tax invoices.

Learn next¶

General information only — not tax, super or financial advice.

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