What is a Tax Invoice? (Australian Guide, 2026)

Tax invoice definition

The Australian Taxation Office defines a tax invoice as a document containing certain specific information that proves a taxable sale has occurred. It is the legal record that lets a GST-registered buyer claim back the GST they paid as an input tax credit on their Business Activity Statement (BAS).

Critically, a tax invoice is different from a "regular invoice" in three ways:

• It can only be issued by a GST-registered business
• It must explicitly include the words "Tax Invoice"
• It must show the GST amount (either as a separate line or as a "GST included" note)

If you are not GST-registered, you cannot issue a tax invoice — you must issue a regular invoice instead. See our general invoice guide if you are not GST-registered.

The 8 ATO requirements for a tax invoice

Every Australian tax invoice must include these 8 elements. Miss any of them and the document is technically invalid — and the buyer cannot claim back the GST.

Source: Australian Taxation Office — Tax invoices

When a tax invoice is required

Two things have to be true at the same time:

1. You are registered for GST (mandatory once your turnover hits $75,000/year)
2. The sale is for $82.50 or more, GST-inclusive

If both conditions are met, you must issue a tax invoice. If the sale is under $82.50, a regular receipt or invoice is enough — though issuing a tax invoice anyway is a best-practice habit that prevents customer disputes.

The 28-day rule: if a buyer requests a tax invoice, you must issue it within 28 days of the request. Practically, issue it on the day of sale or within 48 hours — Australian small businesses get paid 1.5× faster when they invoice within 24 hours.

Tax invoices for sales over $1,000

For tax invoices where the GST-inclusive total is $1,000 or more, the ATO requires one additional field on top of the standard 8:

For sales under $1,000, you can leave the buyer's identity off entirely — though showing at least their name is professional and helps the buyer file the invoice on their end.

Anatomy of a compliant Australian tax invoice

Here is a typical layout, with each ATO-required field labelled. Use this as a checklist when building your own.

Use our free tax invoice template →

Tax invoices for GST-free supplies

Some goods and services are GST-free in Australia — including most fresh food, exports, certain medical services, and education. If your invoice contains a mix of taxable and GST-free items, the ATO requires you to make the distinction clear on the invoice.

Two acceptable approaches:

• Mark each GST-free line item with "GST-free" or an asterisk + footnote
• Show separate subtotals for "Taxable supplies" and "GST-free supplies" with GST calculated only on the taxable portion

Recipient-created tax invoices (RCTI)

An RCTI is a tax invoice issued by the buyer instead of the supplier. A buyer cannot choose this workflow for every purchase: the recipient and supply must qualify under the ATO's Recipient Created Tax Invoice Determination 2023.

For an RCTI to be valid:

• Both parties must be GST-registered
• A current written agreement must allow the recipient to issue RCTIs and prevent duplicate supplier tax invoices
• The document must clearly be a recipient-created tax invoice and include both parties' required details
• The supplier must receive it within 28 days, and the recipient must retain a copy for five years

See the complete recipient-created tax invoice guide for eligibility, agreement wording, required fields and record keeping.

What happens if your tax invoice is non-compliant

If your tax invoice is missing any of the 8 required fields, the ATO treats it as invalid. Three things follow:

1. The buyer cannot claim the GST credit until you reissue a valid invoice
2. The buyer asks you to reissue — slowing down payment and creating admin overhead
3. Repeated non-compliance can trigger ATO penalties under the GST Act, particularly if it appears intentional

Using an invoice generator that builds tax invoices from a validated template eliminates this risk — the required fields are enforced at form level.

Free tax invoice template

Use our pre-built Australian tax invoice — every ATO-required field is included by default. Edit it in your browser, download as PDF, no signup.

Frequently asked questions