Tax invoice requirements in Australia
What a tax invoice must show, when you have to provide one, and how to handle GST-free items and rounding. Plain English, from the ATO's rules.
The short version: if you're registered for GST, give a tax invoice within 28 days when a customer asks (unless the sale is $82.50 or less including GST). Under $1,000 it must show 7 things: that it's a tax invoice, your identity, your ABN, the date, what you sold with quantity and price, the GST, and which items are taxable. From $1,000, add the buyer's identity or ABN.
Who issues tax invoices
Businesses registered for GST. If you're not registered, your invoices must not include the words “tax invoice”; you issue standard invoices instead (see our no-GST template). Usually the seller issues the tax invoice; in some industries a buyer can issue a recipient-created tax invoice (RCTI) under a written agreement.
When you must provide a tax invoice
If a customer asks for a tax invoice, you must provide one within 28 days, unless the sale is $82.50 or less, including GST. Your customer needs a valid tax invoice to claim GST credits.
What a tax invoice under $1,000 must show
The ATO lists 7 details a tax invoice for a sale under $1,000 must make clear:
- that the document is intended to be a tax invoice
- the seller's identity
- the seller's ABN
- the date it was issued
- a brief description of the items sold, including the quantity (if applicable) and the price
- the GST amount (if any) payable
- the extent to which each sale on the invoice is a taxable sale
An invoice number isn't on the ATO's list, but business.gov.au recommends a unique number on every invoice, and it makes payments much easier to match.
Tax invoices of $1,000 or more
These need everything above plus the buyer's identity or ABN. A tax invoice that meets the $1,000 requirements can be used for smaller sales too, so many businesses always include the customer's name.
Showing the GST
Show the GST amount separately, or, if the GST is exactly one eleventh of the total, you can instead write “Total price includes GST”. That shortcut only works when everything on the invoice is taxable.
| Description | Qty | Price (ex. GST) | GST | Amount |
|---|---|---|---|---|
| Bathroom regrout | 1 | $850.00 | 10% | $850.00 |
| Materials | 1 | $120.00 | 10% | $120.00 |
| Disposal fee | 1 | $40.00 | 10% | $40.00 |
| Subtotal excl. GST | $1,010.00 | |||
| GST (10% of $1,010.00) | $101.00 | |||
| Total incl. GST | $1,111.00 | |||
GST-free and taxable items on one invoice
If a tax invoice includes taxable and non-taxable items (GST-free or input-taxed), it must clearly show which items are taxable, the GST payable and the total. A “GST” column marking each line “10%” or “GST-free” does the job, which is how Krid's free invoice generator lays it out.
Rounding GST
Round GST to the nearest cent, rounding half a cent up. With more than one taxable item you can use the total invoice rule (add up the taxable sales, then work out and round the GST once) or the taxable supply rule (work out each item's GST, then add them up and round). You and your customers don't have to use the same method.
PDF tax invoices and eInvoicing
A tax invoice doesn't have to be on paper. Emailing a PDF is fine, provided it contains all the required information. Australia has also adopted the Peppol network for eInvoicing between businesses' software; an eInvoice sent under that framework with all the mandatory data counts as a tax invoice even without the words “Tax invoice”.
Fixing a wrong tax invoice
If a tax invoice is wrong or missing details, it isn't valid for your customer's GST credit. Replace it with a complete, correct tax invoice when they ask rather than correcting it by hand.
Checklist
- Titled “Tax invoice”
- Your business name and ABN
- Issue date and a unique invoice number
- Each item: description, quantity, price
- GST shown (or “Total price includes GST” if everything is taxable)
- GST-free items clearly marked
- From $1,000: your customer's name or ABN
Get it right every time with the tax invoice template or the free invoice generator, which flags a missing ABN or buyer details for you.
Tax invoices without the checklist
Krid puts your ABN, GST and a unique invoice number on every invoice automatically.
14 days of Krid Pro free. No card required. Then $19 AUD/month if you choose to subscribe, or stay on Krid Free (3 invoices a month).
Questions
Does a tax invoice have to say “Tax invoice”?
It must be clear that the document is intended to be a tax invoice. The simplest way, and what the ATO and business.gov.au describe, is to title it “Tax invoice”.
Is a PDF tax invoice valid?
Yes. The ATO says tax invoices don't need to be on paper; an emailed PDF is fine as long as it has all the required information.
What if I made a mistake on a tax invoice?
Replace it with a complete, correct tax invoice. Your customer needs a valid tax invoice to claim GST credits.
Do I need to issue a tax invoice for every sale?
You must provide one within 28 days when a customer asks, unless the sale is $82.50 or less including GST. Many businesses issue one for every sale anyway.
Sources
Last reviewed 27 October 2026. General information for Australian businesses, not tax or legal advice. If you're unsure how a rule applies to you, ask the ATO or a registered tax agent.
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