What is a tax invoice?
A tax invoice is a document issued by a supplier that records a taxable sale and provides the information a business customer needs to claim a GST credit (input tax credit) on the purchase.
In Australia, tax invoices are governed by the GST Act. If you are registered for GST and make a taxable sale, you are required to issue a tax invoice if the sale is $82.50 or more (including GST) and the buyer requests one.
Most businesses treat all invoices for GST-registered transactions as tax invoices, regardless of whether the buyer has formally asked.
When do you need a tax invoice?
You must issue a tax invoice when all of the following apply:
- You are registered for GST
- The sale is taxable (not GST-free or input-taxed)
- The total amount is $82.50 or more (including GST)
- The buyer is a business or has requested a tax invoice
If the total is below $82.50 (including GST), a standard invoice or receipt is sufficient for the buyer to claim a GST credit.
What a tax invoice must include
The ATO requires the following information on a tax invoice:
| Required field | Notes |
|---|---|
| The words “Tax Invoice” | Must appear prominently on the document |
| Supplier’s name | Your registered business name or trading name |
| Supplier’s ABN | Your Australian Business Number |
| Date the invoice was issued | The date you send or issue the document |
| Brief description of the goods or services | Enough detail for the buyer to identify the supply |
| GST amount payable | Either show GST on each line item, or include a statement that the total price includes GST |
| Total price including GST | The full amount the buyer is required to pay |
For sales of $1,000 or more, a tax invoice must also include:
- The buyer’s identity or ABN (name or ABN of the recipient)
Standard invoice vs. tax invoice
| Feature | Standard invoice | Tax invoice |
|---|---|---|
| Required when | Sale below $82.50 | Sale $82.50 and above |
| Must say “Tax Invoice” | No | Yes |
| Must show supplier ABN | Recommended, not required | Yes — required |
| Must show GST amount | No | Yes |
| Buyer can claim GST credit | Only with a tax invoice | Yes |
For sales to other registered businesses, a tax invoice is almost always what you should be issuing — even for lower-value items. It is good practice and makes accounting straightforward for your clients.
GST-free and input-taxed supplies
Not all supplies attract GST. Some common categories:
GST-free: Fresh food, most health services, most educational courses, some childcare services. You do not charge GST on these, but you can still issue an invoice noting that the supply is GST-free.
Input-taxed: Residential rent, financial services, precious metals. GST is not charged, and you cannot claim input tax credits on related purchases.
For these types of supply, the invoice does not need to show a GST component — but including your ABN and the words “Tax Invoice” on a formal document is still considered best practice.
Recipient-created tax invoices (RCTIs)
In some industries, the buyer (rather than the supplier) creates the tax invoice. This is called a Recipient-Created Tax Invoice (RCTI). It is used in arrangements such as primary producers selling to co-ops, or contractors in certain industries. RCTIs require a written agreement between the parties and specific wording on the document. Speak with your accountant if you think RCTIs may apply to your business.
Record-keeping
The ATO requires businesses to keep tax invoices and business records for five years. This applies to both the invoices you issue and the invoices you receive from suppliers. Records can be kept digitally — you do not need to retain paper copies, provided the digital records are complete, accessible and easily retrieved.
How InvoiceSent helps
InvoiceSent creates invoices that include the fields the ATO typically requires on a tax invoice — your business name, ABN, GST amount, subtotal and total. You configure your ABN and GST rate once, and they appear on every document you send.
InvoiceSent is invoicing software. It is not an accounting platform and does not provide tax advice. Your obligations under the GST Act depend on your specific circumstances — consult the ATO website or a registered tax agent if you are unsure.
Last reviewed: July 2026