Invoices and records
Receipt
A receipt is a document that confirms a payment has been made, showing what was bought, when, and for how much, but it is not automatically a tax invoice for GST purposes.
A receipt is proof that money changed hands. It usually shows the date, the seller, a description of what was purchased and the amount paid. People often use the words receipt and invoice interchangeably, but they do different jobs. An invoice asks for payment, while a receipt confirms that payment has been made. For GST purposes the difference matters, because a receipt on its own does not always give a business what it needs to claim a credit.
To claim a GST credit on a business purchase worth more than $82.50 (GST inclusive), you generally need a valid tax invoice. A receipt can double as a tax invoice if it contains all the required details, such as the words tax invoice, the seller's identity and ABN, the date, a description of the item, and the GST amount or a statement that GST is included. Many point-of-sale receipts from large retailers are printed to meet these requirements, but a plain handwritten docket often will not.
For smaller purchases, the rules are lighter. If a purchase is $82.50 or less, you can usually claim a credit without a tax invoice as long as you have some other evidence, such as a receipt, a bank record or a cash register tape, showing the purchase was made. This is why keeping every receipt is sensible even for small items like stationery, fuel or parking, since they add up across a BAS period.
Receipts also matter for income tax. A deduction generally needs to be backed by a record showing what was bought, the amount and the date. Where a receipt is lost, a card statement may show the payment, but it will not show what was purchased, so it is weaker evidence. Digital receipts emailed or stored in an app are acceptable as long as they are kept in a readable form and can be produced if the ATO asks.
A common misunderstanding is that a card statement or a bank transfer confirmation replaces a receipt. It shows payment, but it rarely shows GST details or a description of the goods, so it does not support a GST credit above the $82.50 threshold. Another mistake is throwing away thermal paper receipts that fade quickly. Photograph or scan them as soon as you can, and store the image with your other business records.
Businesses that sell to customers should also think about the receipts they issue. If a customer asks for a tax invoice for a sale of $82.50 or more, you must provide one within 28 days of the request. Issuing a clear receipt that also meets tax invoice requirements saves time later and avoids disputes. Records generally need to be kept for five years, so build a simple filing habit early. This is general information only, so confirm your own situation with the ATO or a registered tax professional.
Worked example
Priya runs a small cleaning business and buys $330 of equipment from a trade supplier. The supplier hands her a till receipt showing the words tax invoice, its ABN, the date, the items and a line stating GST of $30. Because the purchase is over $82.50 and the receipt meets the tax invoice requirements, she can claim the $30 credit (330 divided by 11) on her BAS and also keep the $300 net cost as a deduction.
Practical tips
- Check that a receipt for a purchase over $82.50 actually says tax invoice and shows the seller's ABN before you rely on it for a GST credit.
- Scan or photograph paper receipts straight away, because thermal paper fades and a faded receipt is poor evidence.
- Do not treat a bank or card statement as a substitute, since it does not show what was bought or the GST amount.