Tax invoice requirements in Australia
A valid Australian tax invoice must show that it is a tax invoice, the seller's identity and ABN, the issue date, a description of what was sold with quantity and price, and the GST amount or a statement that the total includes GST. For sales of $1,000 or more it must also show the buyer's identity or ABN. You only need to issue one when a customer asks, and then within 28 days, unless the sale is $82.50 or less including GST.
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What must be on an Australian tax invoice
The ATO sets seven requirements for most tax invoices. The document must be issued by the seller, and a buyer generally needs it to claim GST credits. These requirements were checked against ATO guidance on 23 October 2026.
| Requirement | Sales under $1,000 | Sales of $1,000 or more |
|---|---|---|
| Shows it is intended to be a tax invoice | Required | Required |
| Seller's identity | Required | Required |
| Seller's ABN | Required | Required |
| Date the invoice was issued | Required | Required |
| Description of items sold, with quantity and price | Required | Required |
| GST amount, or a statement that the total price includes GST | Required | Required |
| Extent each sale is taxable | Required | Required |
| Buyer's identity or ABN | Not required | Required |
When you must issue a tax invoice
GST-registered businesses must give a tax invoice when the customer asks for one. Issue it within 28 days of the request. You don't have to provide one for a sale of $82.50 or less including GST, although a receipt is still good practice.
Only GST-registered businesses can issue tax invoices. You must register for GST when your GST turnover reaches $75,000 or more, measured over the current month and previous 11 months, or projected over the current month and next 11 months. Not-for-profit organisations have a $150,000 threshold, and taxi and ride-sourcing drivers must register regardless of turnover. If you are not registered, issue an ordinary invoice without GST.
Why buyers need a valid tax invoice
A business buyer generally needs a tax invoice before claiming GST credits on purchases over $82.50 including GST. Keep the invoice with your records. If an invoice is missing a required detail, ask the supplier for a corrected copy before claiming the credit.
Before paying a new supplier, check their ABN and GST registration on the Australian Business Register's free ABN Lookup. An invoice that shows GST from a business that is not registered for GST does not support a GST credit claim, so ask the supplier to correct it before you rely on it.
Tax invoice, ordinary invoice or receipt?
A tax invoice is a specific GST document. An ordinary invoice asks for payment but does not support a GST credit claim, and it is what a business that is not registered for GST should issue. A receipt confirms that payment was received. A single document can be both a tax invoice and a receipt if it contains every required tax invoice detail.
The words "tax invoice" make the purpose clear to the buyer. Keep the layout consistent so customers and their bookkeepers can find the ABN, date, GST and total quickly. Number each invoice in sequence, so missing or duplicated invoices are easy to spot when you reconcile payments.
Adjustment notes for refunds and price changes
If the price changes after you issue a tax invoice, for example because of a refund, a discount or a cancelled order, the GST on the original invoice may no longer be correct. An adjustment note records that change. Under ATO guidance, a supplier generally has 28 days to issue an adjustment note, counted from the earlier of the buyer's request or the supplier becoming aware of the adjustment.
An adjustment note should refer to the original invoice, show the change in price and the change in GST, and include the same identity and ABN details as a tax invoice. Keep it with the original invoice so the full history of the sale stays together.
When the buyer issues the invoice
In some industries the buyer prepares the tax invoice instead of the seller. These are called recipient-created tax invoices. They are allowed only in circumstances set by the ATO and need a written agreement between the buyer and supplier. Most freelancers and service businesses do not use them; if a customer asks to issue invoices on your behalf, check the agreement and the ATO rules first.
Working out the GST on an invoice
GST in Australia is 10% of the GST-exclusive price. To find the GST included in a GST-inclusive price, divide the total by 11. A total of $1,320 including GST contains $120 of GST and a GST-exclusive price of $1,200.
Show either the GST amount or a statement such as "Total price includes GST". If an invoice mixes taxable and GST-free items, make clear which items include GST and show the GST amount for the taxable part.
Worked example: a design invoice over $1,000
Harbourline Studio is a fictional GST-registered sole trader in Sydney. It invoices a client for a logo project and two revisions. Because the total is over $1,000, the invoice must include the buyer's name or ABN.
| Invoice field | Example entry |
|---|---|
| Document title | Tax invoice |
| Seller | Harbourline Studio, ABN 12 345 678 901 (fictional) |
| Buyer | Kestrel Coffee Pty Ltd (fictional) |
| Issue date | 23 October 2026 |
| Items | Logo design, 1 × $1,000.00; revisions, 2 × $100.00 |
| GST-exclusive total | $1,200.00 |
| GST (10%) | $120.00 |
| Total including GST | $1,320.00 |
Common tax invoice mistakes
- Leaving off the ABN, or showing an ABN that does not match the seller.
- Charging GST when the business is not registered for GST.
- Omitting the buyer's details on an invoice of $1,000 or more.
- Describing the work too vaguely, such as "services", with no quantity or price.
- Not marking which items are taxable when an invoice includes GST-free items.
Keep invoices with your records
The ATO generally expects business records to be kept for 5 years. Store sales and purchase invoices by month so you can match them to payments and prepare your activity statement. Note the due date on each sales invoice so late payments are easy to spot.
Common questions
Do I need to issue a tax invoice for every sale?
No. A GST-registered business must issue a tax invoice when the customer asks for one, within 28 days. It is not required for a sale of $82.50 or less including GST.
What extra detail is needed on an invoice of $1,000 or more?
A tax invoice for a sale of $1,000 or more must also show the buyer's identity or ABN, in addition to the details required for smaller sales.
Can I issue a tax invoice if I am not registered for GST?
No. Only GST-registered businesses can issue tax invoices or charge GST. If you are not registered, issue an ordinary invoice that does not include GST.
How do I work out the GST in a GST-inclusive price?
Divide the GST-inclusive total by 11. For example, $1,320 including GST contains $120 of GST.
What is an adjustment note?
An adjustment note records a change to the price or GST after a tax invoice has been issued, such as a refund or discount. It should refer to the original invoice and show the change in GST.
How long should I keep tax invoices?
The ATO generally requires business records, including tax invoices, to be kept for 5 years in printed or electronic form.