How to Create a Tax Invoice

A tax invoice is a special type of invoice issued by GST-registered businesses to record a taxable sale. Creating one means meeting ATO requirements so the buyer can claim a GST input tax credit.

To create a tax invoice: 1. Open a tax invoice template or generator (InvoiceSonic is free and ATO-compliant) 2. Add the words "Tax Invoice" prominently at the top 3. Include your business name and ABN 4. Generate a unique invoice number and add today's date 5. Add the client's name (and ABN if the sale is $1,000 or more) 6. Itemise each line — description, quantity, GST-exclusive price, and line total 7. Calculate 10% GST on the subtotal 8. Display GST separately or state "Total price includes GST" 9. Show the total amount payable 10. Add payment terms, due date, and your bank or PayID details 11. Save as PDF and send to the client

If a customer asks for a tax invoice, you must issue one within 28 days of the request. Keep a copy for at least five years to meet ATO record-keeping rules.