Invoices and records
Simplified tax invoice
A simplified tax invoice is an informal name for a short-form tax invoice, such as a retail receipt, showing the seller's details, date, description and GST for lower-value sales without the buyer's details.
The term simplified tax invoice is not a separate legal category, but it is widely used to describe a tax invoice for a lower-value sale that carries only the basic details. The tax invoice rules are scaled to the size of the sale. For sales under $1,000, the document does not need to identify the buyer, which makes it practical for retail, cafes, petrol stations and other businesses that deal with many customers.
For a taxable sale of more than $82.50 including GST, a registered seller must give a tax invoice if the buyer asks. The invoice must show the seller's identity and ABN, the date, a brief description of the goods or services, and the amount of GST or a statement that the price includes GST. If the sale is less than $1,000, that is enough. For sales of $1,000 or more, the buyer's identity or ABN and, where relevant, the extent to which each item is taxable must also be included.
Many ordinary shop receipts and till dockets work as short-form tax invoices when they include the right details. A receipt that shows the business name, ABN, date, description of items and a line stating GST included in the total can serve the buyer as a tax invoice for claiming credits. A card receipt that shows only an amount paid is not enough, because it does not describe what was bought or show the seller's ABN.
For sales of $82.50 or less including GST, a tax invoice is not needed to claim the credit, though the buyer should still keep a record of the purchase, such as a receipt or a bank statement showing what was paid and to whom. Many small purchases such as fuel, stationery and supplies fall within this category, and good record keeping supports the claim if the ATO asks.
A buyer should check the document against the requirements at the time of purchase, because it is much easier to ask for a proper invoice immediately than to chase one months later. Digital receipts sent by email are fine. For businesses that make sales online or through apps, automatically issued confirmation emails can be set up to include the required information.
Common mistakes include assuming that any receipt is a tax invoice, and forgetting that sales of $1,000 or more need the buyer's details. A cash register tape may meet the requirements if it includes the needed information. Businesses should also keep copies of the tax invoices they issue, generally for five years.
This is general information only. If you are not sure whether your document meets the requirements, check with the ATO or a registered tax professional.
Worked example
A registered cafe issues a till receipt for catering supplies of $176 including GST. The receipt shows the cafe name and ABN, the date, a description of the items, and states that the total includes GST of $16, worked out as $176 divided by 11. As the amount is under $1,000, no buyer details are needed. The registered buyer holds it and claims a $16 credit.
Practical tips
- Ask for a receipt showing the seller's ABN, date, description and GST for purchases over $82.50.
- Remember that sales of $1,000 or more need the buyer's identity or ABN on the tax invoice.
- Set up your point-of-sale system so receipts carry the details needed for a tax invoice.