ATO Tax Invoice Requirements

What is a tax invoice?

A tax invoice is a document issued by a supplier (seller) that shows the price of goods or services, including any GST. If you are registered for GST, you must provide a tax invoice to your customers within 28 days of them requesting one.

If you are not registered for GST, you issue a regular invoice (not a "tax invoice"). You must not charge or show GST on your invoices.

Mandatory elements for tax invoices under $1,000

For taxable sales of less than $1,000 (including GST), your tax invoice must include:

• The document is clearly labelled "Tax Invoice"
• Your identity as the seller (business name or trading name)
• Your Australian Business Number (ABN)
• The date the invoice was issued
• A brief description of the items sold, including quantity and unit price
• The GST amount payable (if any) - shown separately or as a statement that the total includes GST
• The total amount payable

Additional requirements for invoices of $1,000 or more

For taxable sales of $1,000 or more (including GST), you must also include:

• The buyer's identity or ABN
• The quantity or volume of each item sold
• Each item's price (or total price) before GST
• The GST for each item (or, if the same GST rate applies, the total GST)

When you are not registered for GST

If your annual turnover is below $75,000 and you are not voluntarily registered for GST:

• Issue a regular invoice, not a "tax invoice"
• Do not show GST as a separate line item
• Do not include "Tax Invoice" as the title - use "Invoice" instead
• Still include your ABN (if you have one), date, description, and total amount

Our invoice generator handles this automatically - just leave the GST toggle off.

How long to keep invoices

The ATO requires you to keep your tax invoices (both issued and received) for 5 years from the date you lodge the related tax return. Digital copies are acceptable as long as they are readable and accessible.

Common mistakes to avoid

• Missing ABN - without your ABN, the buyer may withhold 47% of the payment under the PAYG withholding rules
• Charging GST when not registered - this is illegal and may result in penalties
• Not showing GST separately - buyers need to see the GST amount to claim input tax credits
• Wrong date - the invoice date affects which BAS period the transaction falls into
• Generic descriptions - "services rendered" is not sufficient; be specific about what was provided

Recipient-created tax invoices (RCTI)

In some cases, the buyer can issue the tax invoice instead of the seller. This requires a written agreement between both parties and is common in industries like agriculture and mining. Both parties must be registered for GST.