Tax invoice
The GST-compliant invoice that lets a buyer claim the GST back.
A tax invoice is an invoice that meets the ATO’s requirements so the buyer can claim the GST back. For sales over $82.50 including GST it must show your business name and ABN, the date, what was sold, the GST amount (or that the price includes GST), and the buyer’s details once it’s $1,000 or more.
Worked example
A $1,100 invoice should state “Total includes GST of $100” along with your ABN. Without the ABN and GST detail, your client’s bookkeeper can’t substantiate the credit.
Common mistake
Labelling an invoice “Tax Invoice” while not being registered for GST. If you’re not registered you must not charge GST — and issuing one anyway is a problem for both sides.
Grounded in ATO guidance. Figures last checked . General information, not tax advice.
Related terms
GST (Goods and Services Tax)
Australia’s flat 10% tax on most goods and services.
BAS (Business Activity Statement)
The form GST-registered businesses use to report GST and PAYG.
Substantiation (proving a deduction)
The records that turn a claim into a defensible deduction.
PAYG (Pay As You Go)
Paying tax through the year rather than in one lump.
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