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How to write a valid tax invoice in Australia (with a free checklist)
A tax invoice is the document GST-registered businesses give customers so they can claim GST credits. It must say 'Tax invoice', show your ABN, the date, a description of what was supplied, and the GST amount. For sales of $1,000 or more it must also identify the buyer.
A tax invoice is not just a bill. It is the document that lets a business customer claim back the GST they paid you, and it is the record you keep to prove what you charged. Get the details wrong and your customer can be refused a GST credit, which is a quick way to lose a regular client. This guide covers exactly what the ATO requires, with a layout you can copy and a checklist to tick.
- Only GST-registered businesses issue tax invoices.
- It must say 'Tax invoice', show your ABN, the date, a description, and the GST.
- Sales of $1,000 or more also need the buyer's name or ABN.
- You must provide one within 28 days if a customer asks for one on a sale over $82.50.
What is a tax invoice?
A tax invoice is a document that shows a taxable sale and the GST charged on it. If you are registered for GST, you must give your customer one when they ask for it, if the sale is over $82.50 including GST. A customer who is GST-registered uses it to claim a GST credit on their BAS, so for many of your commercial customers it is not optional in practice.
If you are not registered for GST, you cannot issue a tax invoice and you must not charge GST. Issue a normal invoice showing your ABN and the work done.
What it must include
- The words Tax invoice, stated clearly.
- Your business name (or trading name) and your ABN.
- The date the invoice was issued.
- A description of what was sold, including quantity and price.
- The GST amount shown separately, or the words 'Total price includes GST' when GST is exactly one-eleventh of the total.
- For sales of $1,000 or more, the buyer's name or ABN.
Tip. Where one invoice covers taxable and GST-free items, show which are taxable and the total GST.
Run through the checklist
Tax invoice checklist
0 of 8 done. Your ticks stay on this device.
A sample layout
Here is a clean layout many tradies use. It puts the legal requirements at the top and the payment details at the bottom, where customers look when they are ready to pay.
| Section | What goes in it |
|---|---|
| Top | Your logo, business name, ABN, phone and email. The words Tax invoice in large type. |
| Customer | Name, address and ABN if they have one. Job address if different. |
| Details | Invoice number, issue date, due date, and the job reference. |
| Line items | Description, quantity, unit price and line total for each part of the job. |
| Totals | Subtotal, GST and the total. Or 'Total includes GST of $X'. |
| Paying | Bank details or a payment link, and your payment terms. |
Worked example
Tax invoice, invoice 1042, issued 14 March. Smith Tiling, ABN on the invoice. Customer: Greenfield Property, ABN on the invoice (the sale is over $1,000).
Labour 14 hours at $90: $1,260. Tiles and materials: $940. Subtotal: $2,200. GST: $220. Total: $2,420. Due within 14 days. Pay by bank transfer or the link below.
Invoice or tax invoice: which do you need?
| Tax invoice | Plain invoice | |
|---|---|---|
| Who issues it | GST-registered businesses | Businesses not registered for GST |
| GST shown | Yes | No GST charged |
| Customer can claim GST credit | Yes, if they are registered | No |
| ABN required | Yes | Yes (good practice) |
Mistakes that cause trouble
- Calling a document a tax invoice when you are not registered for GST.
- Leaving out your ABN.
- Showing only a total with no description of the work.
- Forgetting to show the GST, or showing GST on GST-free items.
- No invoice number, which makes records hard to follow.
- Sending it weeks after the job. Late invoices are paid late.
Watch out. If you are not registered for GST but your sales are heading toward $75,000, read our GST registration guide before your next invoice.
Records and timing
Keep copies of the invoices you issue, and the tax invoices you receive for purchases, for at least five years. Many tradies find it easiest to send every invoice as a PDF or link and keep the record in one place.
Send the invoice the day the job finishes. The sooner it goes out, the sooner it gets paid. See our guide to getting paid faster.
Sending tax invoices the smart way
The best invoice is the one that gets paid. Include a due date, a clear total, and a way to pay at the top. Send it as soon as the job is done, and keep a copy in the same place as the quote. If you use software, it should number invoices automatically so you never skip or double a number.
If you ever receive a tax invoice that is missing details, ask the supplier to fix it before you claim the GST credit. You generally need a valid tax invoice to claim credits on purchases over $82.50.
Quick answers
Do I have to give a tax invoice for every job?
If you are registered for GST, you must provide one within 28 days when a customer asks for one on a sale over $82.50. Many businesses simply send one every time.
Does a tax invoice need to be signed?
No. It needs the required information, not a signature.
Can I send a tax invoice by email?
Yes. An electronic copy is fine as long as it has the required details.
What is the difference between a quote and a tax invoice?
A quote offers a price before the work. A tax invoice is issued after a sale to record it and the GST.
Does a tax invoice need the customer's ABN?
For sales of $1,000 or more it needs the buyer's name or ABN. Smaller sales do not.
Can I use a tax invoice template?
Yes, as long as every required detail is present on every invoice.
How long do I keep invoices?
Generally five years. Check with the ATO or your accountant for your situation.
What if I made a mistake on an invoice?
Issue a corrected invoice or an adjustment note and keep both. Ask your accountant about the right approach for your situation.
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This guide is general information, not legal, tax or financial advice. Rules change and differ by state, so check with the ATO, your state regulator or your accountant before you act.
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