Invoices and records

Tax invoice

A tax invoice is a document from a GST-registered seller that shows the details of a taxable sale, and a buyer generally needs one to claim an input tax credit for purchases over $82.50.

A tax invoice is a specific document that a registered seller must give to a buyer who asks for one when making a taxable sale of more than $82.50 including GST. It is the main piece of evidence a buyer needs to claim input tax credits. Without a valid tax invoice, a buyer generally cannot claim the credit for a purchase over that amount, even if GST was truly paid.

The document must contain certain details. It must be clear that it is a tax invoice, it must show the seller's identity and ABN, the date of issue, a brief description of what was sold including the quantity and price, and the amount of GST payable or a statement that the total price includes GST. For sales of $1,000 or more, the invoice must also show the buyer's identity or ABN. Where an invoice includes both taxable and non-taxable items, it must make clear which items are taxable.

There is some flexibility in form. A tax invoice can be paper or electronic, and it can be a document that the seller ordinarily uses, such as a receipt or a computer-generated statement, provided it has the required information. A bank statement or credit card statement is not a tax invoice, though it can support a claim for smaller amounts for which a tax invoice is not required. Handwritten invoices are fine if they have the required details.

Timing is also important. A seller must give a tax invoice within 28 days of a request from the buyer. The buyer must hold the tax invoice at the time they lodge the BAS in which they claim the credit. If the tax invoice is lost or never provided, the buyer should ask the supplier for a copy. Claims without a valid invoice could be disallowed on review, and can lead to a shortfall plus interest and potentially penalties.

Tax invoices are different from ordinary invoices. Any document that requests payment is an invoice, but only a document that meets the legal requirements is a tax invoice. A seller who is not registered for GST cannot issue a tax invoice, and any document showing GST from such a seller is not valid for claiming credits. A buyer checking a new supplier should confirm that the ABN is active and that it is registered for GST.

Sellers must also keep copies of the tax invoices they issue, generally for five years, so they can support the GST they report. If a tax invoice contains an error, such as the wrong amount of GST, the seller should fix it, often by issuing an adjustment note or a new tax invoice, rather than relying on the buyer to correct it. If a sale is later changed, an adjustment note records the difference.

This is general information only. For unusual transactions, confirm requirements with the ATO or a registered tax professional.

← Back to Glossary Open the GST calculator