What is a tax invoice?

Tax invoice or ordinary invoice?

Only a business registered for GST issues a tax invoice. If you are not registered, you issue an ordinary invoice and charge no GST on it.

This is not a naming preference. Putting a GST amount on an invoice when you are not registered means collecting tax you are not entitled to collect.

What it must show

Field	Under $1,000	$1,000 and over
The words tax invoice	Required	Required
Seller’s identity	Required	Required
Seller’s ABN	Required	Required
Date issued	Required	Required
Description of what was sold	Required	Required
GST amount, or a statement that the total includes GST	Required	Required
Buyer’s identity or ABN	Not required	Required

The $1,000 line

Once the total reaches $1,000, the buyer must be identified by name or ABN. It is the single most commonly missed requirement, because an invoice that was fine last month crosses the threshold this month without anyone noticing. The invoice maker watches the total and says so.

Showing the GST

You may either list the GST as its own line, or state that the total includes GST. Showing it separately is clearer for the person who has to enter it into their books.

Why the ABN matters

If a business is invoiced without a valid ABN being quoted, the payer may be required to withhold tax from the payment. Include it, and check it before you send.

Keeping records

Businesses are generally required to keep tax records for five years. A PDF of every invoice you issue, stored somewhere you will still have access to, is the simplest way to meet that.