If you run a business that is not registered for Goods & Services Tax (GST), your invoices won’t include a tax component and should not have the words ‘tax invoice’ on it. You should only issue an ‘invoice’.
If you are registered for GST, your invoice must be a Tax Invoice. Tax invoices are different as they include the GST amount for each item along with some extra details.
Tax invoices for taxable sales of less than $1,000 must include enough information to clearly determine the following seven details:
- that the document is intended to be a tax invoice
- the seller’s identity
- the seller’s Australian business number (ABN)
- the date the invoice was issued
- a brief description of the items sold, including the quantity (if applicable) and the price
- the GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, such as a statement which says ‘Total price includes GST’
- the extent to which each sale on the invoice is a taxable sale (that is, the extent to which each sale includes GST).
Tax invoices for sales of $1,000 or more need to show the buyer’s identity or ABN also.
Example 1: Example 1:
Tax Invoice for a sale under $1,000 Tax Invoice of more than $1,000