Tax Invoice Requirements: What Every Invoice Must Include
A tax invoice needs seven things: something making clear it's a tax invoice, your business name, your ABN, the date, a description of what you sold, the GST amount, and which items GST applies to — plus the buyer's name or ABN once the sale reaches $1,000. Get one of those wrong and your customer's bookkeeper can legitimately park the invoice until you reissue it, which is how a 14-day invoice quietly becomes a 45-day one. Here's the full list, the thresholds that change it, and what to send instead if you're not registered for GST.
What every tax invoice must include
If you're registered for GST, every tax invoice you issue for a taxable sale under $1,000 must show all seven of these.
| Requirement | What it looks like in practice |
|---|---|
| The document is intended to be a tax invoice | The words "Tax invoice" at the top |
| The seller's identity | Your business name or trading name |
| The seller's ABN | Your 11-digit ABN, near your business name |
| The date it was issued | Not the date of the job — the date you raised the invoice |
| A description of what was sold | Enough detail to identify it, with quantity where relevant, and the price |
| The GST amount payable | Shown as a separate figure, or the words "Total price includes GST" if the GST is exactly one-eleventh of the total |
| Which sales are taxable | Obvious if everything on the invoice has GST; needs marking if some items don't |
Strictly, the law doesn't demand the exact words "Tax invoice" — the test is whether it's clear from the document that it was meant to be one. But there's no upside in being clever here. Put the words at the top and remove any argument.
The ABN is the field people forget, and it's the expensive one. If you don't quote an ABN, a business paying you generally has to withhold 47% of the payment and send it to the ATO, for any payment over $75 excluding GST. There are exceptions — a hobby, or a supply that's wholly private — and the supplier claims them using the ATO's Statement by a supplier form. If you don't have an ABN yet, sort that out first; it's free.
Sales of $1,000 or more: one extra field
Once the invoice total hits $1,000 you also have to show the buyer's identity or ABN. That's it — one extra field.
Rather than run two invoice templates, set your software up so every invoice captures the customer's name and ABN. An invoice that meets the $1,000-and-over requirements is valid for smaller amounts too, so a single template covers everything.
The $82.50 rule and the 28-day rule
Two thresholds get mixed up constantly, so keep them apart.
$82.50 including GST is the buyer's threshold. Your customer needs a valid tax invoice to claim a GST credit on a purchase costing more than $82.50 including GST. At or below that, a receipt, docket or bank statement line is enough evidence. The number isn't arbitrary — it's $75 plus 10% GST.
28 days is the seller's deadline. If you're registered for GST and a customer asks for a tax invoice for a taxable sale, you have to give them one within 28 days of the request. The obligation doesn't bite for sales of $82.50 or less, but in practice most businesses issue one anyway because it takes ten seconds.
Time limits run on the other side too. There's generally a four-year limit on claiming GST credits, so a tax invoice you never got around to chasing eventually becomes worthless. And the ATO expects most business records — invoices included — to be kept for five years.
If you're not registered for GST
You can't issue a tax invoice. A tax invoice is a GST document, and only a GST-registered business can issue one.
What you send instead is an ordinary invoice:
- Head it "Invoice", not "Tax invoice"
- Include your business name, your ABN and the date
- Describe what you sold and the price
- Show no GST line, and don't add 10% to your prices
- Some businesses add a line like "No GST has been charged" to stop the customer's bookkeeper querying it
The mistake that causes real damage is showing GST when you're not registered. Your customer can't claim the credit, so they've paid 10% for nothing. Once they work it out you're refunding it, and the ATO can pursue the GST you collected regardless. Administrative penalties for false or misleading statements are calculated in penalty units, currently $364 each (as at September 2026).
If your turnover is heading toward $75,000, registration becomes compulsory — check how to register for GST before you cross it, not after. Registration changes your invoice template from day one.
Mixed invoices: taxable and GST-free together
If an invoice has both taxable and GST-free items — common in food, health and education — you have to make clear which sales are taxable. The safe format is a GST column, with the GST shown line by line and zero against the GST-free items.
Don't use the "Total price includes GST" shortcut on a mixed invoice. That statement is only valid when GST is exactly one-eleventh of the whole invoice, which it isn't the moment a GST-free line appears. If you're unsure whether a particular item is taxable, GST-free or input-taxed, settle that before you build the template — a wrong assumption repeated across a year of invoices is a painful clean-up.
Recipient-created tax invoices
Sometimes the buyer writes the invoice instead of the seller. It's normal in agriculture, labour hire, scrap metal and commission-based arrangements, where the buyer knows the final quantity or price before the seller does. That document is a recipient-created tax invoice (RCTI), and it's valid only if all of this is true:
- Both parties are registered for GST
- The supply is a type the Commissioner has allowed RCTIs for (the current determination is Legislative Instrument 2023/20, which consolidated 50 older industry-specific determinations)
- There's a written agreement in place before any RCTI is issued, covering which supplies it applies to, that the recipient will issue the invoices, that the supplier won't issue its own, and that both parties will tell the other if their GST registration changes
- The document says it's a recipient-created tax invoice
- It carries all the normal tax invoice details, including the recipient's ABN
The agreement can be a standalone document or embedded in the terms on the RCTI itself. If you're the supplier in an RCTI arrangement, the practical trap is failing to check the RCTIs you receive — you're still the one reporting that GST on your BAS.
The parts that aren't legally required but get you paid
Nothing in tax law forces you to put a due date on an invoice. Everything in cash flow does.
- Invoice number. Sequential, no gaps, no restarts. It's how you and your customer both find the invoice again, and gaps look careless in an audit.
- Payment terms and a due date. A calendar date, not "14 days" — you'd be surprised how many people don't do the arithmetic. Terms should already be in the quote the customer accepted, not first appearing on the invoice.
- How to pay. BSB and account number, or a payment link. One method fewer than the customer wants is one excuse more.
- Their purchase order or reference number. In corporate and government accounts payable, a missing PO number is an automatic rejection.
- Who to call. A name and number beats a generic inbox when something needs fixing fast.
If the invoice is already overdue by the time you're reading this, the escalation sequence in how to chase unpaid invoices is the next step.
eInvoicing changes the delivery, not the requirements
An eInvoice sent over the Peppol network carries exactly the same mandatory fields — it just travels as structured data straight into your customer's accounting system instead of as a PDF someone has to retype. The ATO accepts that a Peppol eInvoice meets the "intended to be a tax invoice" test even without the words "tax invoice" on it, provided it follows the A-NZ specification and carries all the mandatory data.
The commercial argument is stronger than the compliance one. Under the Commonwealth's Supplier Pay On-Time or Pay Interest Policy (RMG 417), non-corporate Commonwealth entities pay Peppol eInvoices within five calendar days, against 20 calendar days for other correctly rendered invoices — and since 1 July 2022 that applies to contracts of any value, not just those under $1 million. It's also the single best defence against invoice interception scams, because there's no emailed PDF for anyone to intercept and alter. Our eInvoicing guide covers how to switch it on in Xero, MYOB or QuickBooks.
Errors that delay payment
Most invoice disputes aren't disputes at all. They're a missing field and a bookkeeper who can't process the payment without it.
| Error | What it costs you |
|---|---|
| No ABN shown | Payer may have to withhold 47% |
| Missing buyer details on a $1,000+ invoice | Not a valid tax invoice; customer can't claim the GST credit |
| "Total price includes GST" on a mixed invoice | Invalid — GST isn't one-eleventh of the total |
| Showing GST when you're not registered | Refund to the customer, plus ATO exposure |
| No due date, or a vague one | Invoice drifts to the bottom of the payment run |
| Missing PO or reference number | Automatic rejection in most corporate systems |
| Duplicate or out-of-sequence invoice numbers | Payment held while both sides reconcile |
| Sent to the wrong address | Nobody chases an invoice they've never seen |
Fixing an invoice you've already sent
Don't quietly edit and resend a tax invoice that's already been issued and reported. If the price changes, the job is cancelled or you refund part of it, the correct document is an adjustment note (what most software calls a credit note), showing what changed and the GST effect.
The reporting trap is timing: the adjustment belongs in the period the adjustment event happened, not the period you got around to issuing the note. If you're not sure how that flows through to your lodgement, the BAS and GST guide walks through where these figures land.
Key takeaways
- Seven mandatory fields on every tax invoice; add the buyer's name or ABN once the sale reaches $1,000. Build one template to the $1,000-and-over standard and use it for everything.
- Your customer needs a tax invoice to claim a GST credit above $82.50 including GST — and if they ask for one, you have 28 days to provide it.
- Not registered for GST? Send an "Invoice", show your ABN, and never show a GST line.
- On mixed invoices, show GST line by line. The "Total price includes GST" shortcut only works when GST is exactly one-eleventh of the whole invoice.
- RCTIs need both parties GST-registered, an eligible supply type and a written agreement in place beforehand.
- Missing ABNs, missing PO numbers and vague due dates cause more late payments than genuine disputes. Keep invoices for five years.
Where to get help
- ATO — Tax invoices (ato.gov.au) sets out the mandatory fields, the $82.50 and $1,000 thresholds and the RCTI rules. The ATO's ruling GSTR 2013/1 covers the finer points if you need chapter and verse.
- ATO — eInvoicing (ato.gov.au) lists Peppol-enabled software and access points.
- ABN Lookup (abr.business.gov.au) confirms whether a supplier's ABN is real and whether they're actually registered for GST — worth checking before you pay a GST line to someone new.
- business.gov.au has plain-English invoicing guidance and free invoice templates.
- Your BAS agent, bookkeeper or accountant should review your invoice template once, properly, before you send another thousand copies of it. A registered BAS agent can also fix the GST coding sitting behind it.
Frequently asked questions
What has to be on a tax invoice in Australia?
Seven things: something showing the document is meant to be a tax invoice, your business name, your ABN, the date it was issued, a description of what you sold (with quantity and price where relevant), the GST amount payable, and which sales on the invoice are taxable. Once the sale is $1,000 or more you also need the buyer's name or ABN. If the GST is exactly one-eleventh of the total you can replace the dollar figure with the words "Total price includes GST".
Can I issue a tax invoice if I'm not registered for GST?
No. Only a GST-registered business can issue a tax invoice, because a tax invoice is the document that lets your customer claim a GST credit. Head your document "Invoice", include your ABN, and don't show a GST line or add 10% to your prices. Charging GST you're not registered to collect means your customer can't claim it, and the ATO can come after the amount you collected.
Do I have to give a customer a tax invoice if they ask for one?
Yes, within 28 days of the request, if you're registered for GST and the sale is a taxable sale. The obligation doesn't apply to sales of $82.50 including GST or less, though most businesses issue one anyway because it's easier than arguing. Most accounting software does it in one click, so there's rarely a reason to refuse.
Do I need a tax invoice to claim GST on a small purchase?
Not for purchases of $82.50 including GST or less — a receipt, a bank statement line or a docket is enough evidence to claim the GST credit. Above $82.50 you need a valid tax invoice from the supplier before you claim the credit on your BAS. Keep the record either way: the ATO expects most business records to be kept for five years.
What's the difference between an invoice and a tax invoice?
A tax invoice is a GST document; a plain invoice is just a request for payment. Only GST-registered sellers issue tax invoices, and only a valid tax invoice lets a GST-registered buyer claim back the 10% as a GST credit. If you're under the $75,000 GST registration threshold and haven't registered, everything you send is an ordinary invoice.
General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — check the official sources linked in this guide and get qualified advice where your circumstances require it.