How to Write a Tax Invoice

To write a tax invoice in Australia, you must include the words "Tax Invoice", your business identity and ABN, the date, a description of what was sold, and the GST amount (or a note that the total includes GST). You can only issue a tax invoice if you are registered for GST and making a taxable sale.

A tax invoice is a specific document the Australian Taxation Office (ATO) requires so your GST-registered customers can claim a GST credit on what they bought from you. It is different from a plain invoice, and it only applies once your business is registered for GST. If you are not GST registered, you must not charge GST and you must not call your document a tax invoice (more on that below).

What a compliant ATO tax invoice must show

For taxable sales under $1,000, your tax invoice needs to include:

For taxable sales of $1,000 or more, you must also include one extra detail:

How GST works on the invoice

GST in Australia is 10%. On a taxable sale it is added on top of your price, so the GST equals one-eleventh of the GST-inclusive total. Best practice is to show the subtotal, the GST amount, and the total separately so your customer can see exactly what they are paying. If a customer asks for a tax invoice, you generally must provide one within 28 days of the request.

Tax invoice vs regular invoice

If your business is registered for GST, you issue a tax invoice and charge 10% GST. If your business is not registered for GST, you must not charge GST. In that case you issue an ordinary invoice (titled simply "Invoice", not "Tax Invoice") and it is good practice to state "No GST has been charged". Using the wrong document or charging GST when you are not registered can create compliance problems, so match the document to your registration status.

Keep your records

The ATO requires you to keep copies of your tax invoices and related records for at least five years. Digital copies are fine, an emailed PDF is perfectly acceptable as long as it contains all the required information.

InvoiceSonic builds all of these required fields into every invoice, so it produces a compliant ATO tax invoice automatically, including the "Tax Invoice" heading, your ABN, GST shown separately, and the buyer details needed for sales of $1,000 or more. You enter your business and line items once and download a professional, ready-to-send invoice for free.

This is general information only and not tax advice. For advice specific to your situation, check ato.gov.au or speak to a registered tax professional.