What Is Tax Invoice?

A tax invoice is an invoice that meets specific ATO requirements and is used by GST-registered Australian businesses. It records GST collected on a sale and allows the buyer to claim an input tax credit on their BAS.

Key features of a tax invoice:

  • Must be clearly labelled "Tax Invoice" at the top
  • Must show the seller's ABN
  • Must show the GST amount, or state the total includes GST
  • Must include the issue date and a description of items sold
  • For sales of $1,000+, must also show the buyer's identity or ABN

A tax invoice is different from a standard invoice in that only GST-registered businesses can issue one, and only tax invoices can be used to claim GST credits. If you're not registered for GST, you issue a standard invoice without GST on it — your ABN is still required, but you don't call it a "Tax Invoice".

Tax invoices must be issued within 28 days of a customer's request. Keep every tax invoice for at least five years. InvoiceSonic's free tax invoice template includes every ATO-required field.

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