If your business is registered for GST, a valid tax invoice is not optional — and getting the format wrong can cause problems for you and your customers at BAS time. This guide sets out exactly what a tax invoice must show, how to display GST correctly, and what changes if you are not registered.
If your business is registered for GST, you generally must issue a valid tax invoice for taxable sales — and your customers need one to claim their own GST credits. Getting the format right matters: an invoice missing required details is not a valid tax invoice, which can cause problems for both you and your customer at BAS time.
You can create compliant invoices with our free Australian invoice builder, and work out the GST component with our GST calculator.
For sales over a certain threshold, the ATO requires a tax invoice to include specific details. A compliant tax invoice generally shows:
GST in Australia is 10%, and there are two valid ways to show it. You can either display the GST as a separate line — item price, GST, and total — or state a GST-inclusive total with the words "Total price includes GST". For a mix of taxable and GST-free items on one invoice, you must show the GST clearly for each so the customer can see exactly what is taxed.
GST = Price ÷ 11 (to extract GST from a GST-inclusive total)
Note the divide-by-11, not by-10: to find the GST already inside a tax-inclusive price, you divide by 11, because the total is 110% of the pre-GST amount. Our GST calculator handles both adding and extracting GST.
If your business is not registered for GST — generally because your turnover is under the registration threshold — you must not charge GST, and you issue a regular invoice rather than a tax invoice. It should still show your ABN, the date, and a clear description, but it does not include a GST component. Charging GST when you are not registered is a compliance problem, so know your status.
Give every invoice a unique, sequential number so you and the ATO can track them, and keep a copy of every invoice you issue and receive. Australian businesses generally must keep records for five years. Consistent numbering also makes it far easier to chase unpaid invoices and reconcile your accounts at BAS time. Our BAS preparation checklist ties this together.
A clear invoice is also a faster-paid invoice. State the payment terms plainly (for example, "due within 14 days"), include your payment details, and send the invoice promptly. Well-presented invoices with all the required detail leave no excuse for delay and reflect well on your business. Use our invoice builder to produce professional, compliant invoices quickly.
What must a valid tax invoice show in Australia?
The words Tax Invoice, your business name and ABN, the issue date, a description of items with quantity and price, and the GST amount or a statement that the total includes GST. For higher-value sales it must also show the buyer's identity or ABN.
How do I calculate the GST on an invoice?
GST is 10 per cent. To add it, multiply the pre-GST price by 0.1. To extract GST already inside a tax-inclusive total, divide the total by 11 — because the total is 110 per cent of the pre-GST amount. A GST calculator handles both.
What if I am not registered for GST?
You must not charge GST, and you issue a regular invoice rather than a tax invoice. It should still show your ABN, date and a clear description, but no GST component. Charging GST when not registered is a compliance problem.
Why do I need an ABN on my invoice?
If you do not quote an ABN, the payer may be required to withhold tax from the payment. An ABN on every invoice is essential for smooth business-to-business trade and for your customer to claim their GST credit.
How long must I keep invoices?
Australian businesses generally must keep records, including copies of invoices issued and received, for five years. Unique sequential invoice numbers make tracking, chasing payment and reconciling far easier.