Tax invoice
The GST-compliant invoice that lets a buyer claim the GST back.
A tax invoice is an invoice that meets the ATO’s requirements so the buyer can claim the GST back. For sales over $82.50 including GST it must show your business name and ABN, the date, what was sold, the GST amount (or that the price includes GST), and the buyer’s details once it’s $1,000 or more.
Worked example
A $1,100 invoice should state “Total includes GST of $100” along with your ABN. Without the ABN and GST detail, your client’s bookkeeper can’t substantiate the credit.
Common mistake
Labelling an invoice “Tax Invoice” while not being registered for GST. If you’re not registered you must not charge GST — and issuing one anyway is a problem for both sides.
Grounded in ATO guidance. Figures last checked . General information, not tax advice.
Related terms
GST (Goods and Services Tax)
Australia’s flat 10% tax on most goods and services.
BAS (Business Activity Statement)
The form GST-registered businesses use to report GST and PAYG.
Substantiation (proving a deduction)
The records that turn a claim into a defensible deduction.
PAYG (Pay As You Go)
Paying tax through the year rather than in one lump.
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Questions about this term
Tax invoice: common questions
- What must a tax invoice show for the buyer to claim GST?
- For sales over $82.50 including GST: your business name and ABN, the date, what was sold, and the GST amount or a statement that the price includes GST. Once the sale is $1,000 or more, the buyer’s details go on as well. A $1,100 invoice should say “Total includes GST of $100” beside your ABN.
- Can I write “Tax Invoice” on my invoices if I’m not registered for GST?
- No — if you are not registered you must not charge GST, and issuing a tax invoice anyway is a problem for both sides. Your client’s bookkeeper cannot claim a credit that was never collected, and you are presenting yourself as registered when you are not.
- Why does my client’s bookkeeper keep asking for a proper tax invoice?
- Because without the ABN and GST detail they cannot substantiate the credit. The invoice is the buyer’s evidence for claiming the GST back on their BAS. An invoice that omits the GST amount or the ABN leaves them unable to claim, so they chase the compliant version.
- Is a tax invoice different from an ordinary invoice?
- Yes — a tax invoice meets the ATO’s requirements so the buyer can claim the GST back; an ordinary invoice does not need to. Once you are registered for GST, the same invoice that carries your ABN becomes a tax invoice by showing the GST separately.
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