What is a tax invoice?
A tax invoice is a legal document issued by a GST-registered business when it supplies goods or services. It is different from a regular invoice because it specifically documents the GST component of the transaction.
Tax invoices serve two main purposes: they allow the recipient to claim GST input tax credits (i.e. get back the GST they paid as a business expense), and they provide a record for the ATO. Without a valid tax invoice, your client cannot claim back the GST they paid to you.
Only businesses registered for GST can — and must — issue tax invoices. If you are not GST-registered, your document is an “invoice”, not a “tax invoice”. See our invoice without GST template.
The $82.50 threshold
You must issue a tax invoice (when requested) for any taxable sale of $82.50 or more including GST. Below this amount, a simpler invoice is acceptable. In practice, most businesses use the full tax invoice format for everything — it is easier and protects your clients' ability to claim GST credits.
The $1,000 buyer's ABN rule
For invoices of $1,000 or more (including GST), you must include the buyer's identity — either their name or ABN. This is a specific ATO requirement for higher-value invoices. AusInvoice includes a client ABN field for exactly this reason.
ATO tax invoice required fields
The words "Tax Invoice"
AlwaysMust appear prominently at the top of the document
Your ABN
AlwaysYour Australian Business Number — AusInvoice validates this in real time
Your identity
AlwaysYour name or registered business name
Date of issue
AlwaysThe date the invoice was created
Description of supply
AlwaysWhat goods or services were provided
GST amount
AlwaysShown per item, or as a total with a statement that the price includes GST
Total amount payable
AlwaysThe total including GST
Buyer's identity or ABN
$1,000+Required for invoices of $1,000 or more (including GST)
Common tax invoice mistakes to avoid
These errors can prevent your clients from claiming GST credits and may attract ATO scrutiny.
Issuing a "Tax Invoice" when not GST-registered
Only use the words "Tax Invoice" if you are GST-registered. Otherwise use "Invoice". AusInvoice changes the heading automatically based on your GST status.
Missing or invalid ABN
Your ABN must be present and correct on every tax invoice. AusInvoice validates your ABN using the official ATO checksum algorithm before you can download.
Not showing GST as a separate amount
The ATO requires the GST component to be clearly identifiable. Show it as a separate line item or include a clear statement that the total includes $X GST.
Missing buyer details for invoices over $1,000
For invoices of $1,000 or more including GST, you must include the buyer's name or ABN. AusInvoice has a client ABN field specifically for this.
Using the wrong date
The date on a tax invoice should be the date of supply or the date of payment — whichever comes first. Do not backdate invoices.
Vague item descriptions
The ATO requires a clear description of what was supplied. "Consulting services" is acceptable; "services rendered" is not specific enough for larger invoices.
Related resources
GST Invoice Generator
Generate invoices with GST auto-calculated. Inclusive and exclusive pricing.
Sole Trader Invoice
Invoice requirements for sole traders in Australia.
Invoice Without GST
Not GST-registered? Create the correct invoice type.
How to Create a Tax Invoice
Step-by-step guide with all ATO requirements explained.
Tax Invoice vs Regular Invoice
Understand when to use each type and what the differences are.
ABN Validator
Check that your ABN is valid before you invoice.