Tax Invoice Requirements in Australia
Short answer
To claim a GST credit on a purchase of $82.50 or more including GST, you must hold a valid tax invoice. A valid tax invoice shows the words "Tax invoice", the seller's identity and ABN, the date, a description of what was sold, and the GST amount (or a statement that the total includes GST). For sales of $1,000 or more, it must also show the buyer's identity or ABN.
Most invoices you receive will tick every box without anyone thinking about it. The credits that get disallowed at review are almost never the fraudulent ones — they are the ordinary purchases where the invoice was missing one element and nobody checked.
The two thresholds that matter
$82.50 including GST is the substantiation threshold. Below it, a GST credit can be supported by other evidence — a docket, a bank statement, a diary note. At or above it, you need the tax invoice itself.
$1,000 excluding GST changes what the invoice must contain: the buyer's identity or ABN has to appear as well as the seller's. An invoice for $2,200 that shows only the supplier's details is not a fully valid tax invoice.
A related obligation runs the other way. When a buyer asks for a tax invoice for a taxable sale, the seller must provide one within 28 days of the request. That gives you a firm follow-up timeline when a supplier is slow.
The seven mandatory elements
Every valid tax invoice for a standard sale carries these seven things. Miss one and the document is not a tax invoice, which means the GST credit it supports is at risk.
1The words “Tax invoice”
The document must identify itself as a tax invoice, prominently. A document headed 'Invoice', 'Statement' or 'Bill' does not qualify on its own, no matter how complete the rest of it is.
2The seller's identity
The business name or trading name of whoever made the sale. This is who you are claiming the credit against, so it should match the entity whose ABN appears next to it.
3The seller's ABN
The Australian Business Number of the seller. This is the element most often missing or wrong, and it is the one the ATO checks first. An invoice with no ABN, or an ABN belonging to a different entity, cannot support a GST credit.
4The date of issue
When the invoice was issued. This anchors the purchase to a BAS period and matters when the ATO asks why a credit was claimed in a particular quarter.
5A description of what was sold
A brief description of each item, including the quantity and the price. 'Services rendered — $1,100' gives the ATO nothing to work with; 'Consulting — 10 hours at $100 + GST' does.
6The GST amount
Either the GST payable shown as a separate figure, or a clear statement that the total price includes GST. One of the two must be present — silence on GST is not enough.
7The extent to which each sale is taxable
Where an invoice mixes taxable and GST-free or input-taxed items, each taxable sale must be identifiable. The GST figure has to relate to the taxable items only, and the reader must be able to see that.
Mixed sales: taxable and GST-free on one invoice
GST-free and input-taxed sales do not carry GST, and an invoice covering both kinds has to make the split visible. Each taxable item must be identifiable, and the GST total must relate only to those items.
An invoice that lists milk, bread and consulting hours with one unexplained GST figure at the bottom fails this test — there is no way to confirm the GST was calculated only on the taxable line. The fix for the seller is simple: mark GST-free items, or subtotal the taxable items before the GST line.
When the invoice never arrives
The purchase happened, the money left the account, and the supplier never sent the paperwork. This is the single most common substantiation gap in small business ledgers.
The first step is to ask. The supplier must provide a tax invoice within 28 days of your request, so a written request starts a clock. If the invoice still does not arrive, keep the evidence you do have — the payment record, your correspondence, the supplier's ABN — and raise it with your BAS agent or the ATO before claiming the credit.
What you should not do is claim the credit on the bank statement alone for a purchase over $82.50 and hope the invoice turns up later. If it does not, the credit is unsupported for as long as it sits in your BAS.
Special cases worth knowing
Recipient created tax invoices. In some industries the buyer issues the invoice under a written RCTI agreement. These carry extra requirements — see recipient created tax invoices explained.
Adjustment notes. When the value of a sale changes after invoicing, the correction document is an adjustment note, not a second invoice. It must identify the original invoice and the change.
Electronic invoices. A PDF, an e-invoice through Peppol, or a clear photo of a paper invoice are all acceptable. The ATO cares that the record is legible and retrievable for five years, not that it is paper.
Tax invoice compliance checklist
Use this when reviewing supplier invoices — your own or your clients'.
- The document is clearly labelled 'Tax invoice'
- The seller's identity (business or trading name) is shown
- The seller's ABN is shown and matches ABN Lookup
- The date of issue is shown
- There is a brief description of what was sold, including quantity and unit price
- The GST amount is shown separately, or the invoice states the total price includes GST
- It is clear which items are taxable if the invoice mixes taxable and GST-free sales
- For sales of $1,000 or more, the buyer's identity or ABN is also shown
- The invoice is attached to the transaction in your ledger, not sitting in an inbox
- Every invoice is retained for five years
The last two items are where practice falls down. A perfect invoice sitting in a client's inbox is, for audit purposes, an invoice you do not have. For the broader rules on holding evidence, see how to substantiate GST credits in Australia and what records the ATO requires for business purchases.
Frequently asked questions
When is a tax invoice required in Australia?
You need to hold a valid tax invoice to claim a GST credit on any purchase of $82.50 or more including GST. Below that threshold, other evidence such as a docket or bank statement can support the claim. Sellers must provide a tax invoice for taxable sales above the threshold when the buyer asks for one, and must do so within 28 days of the request.
What are the seven things a tax invoice must show?
For a standard sale: the words 'Tax invoice', the seller's identity, the seller's ABN, the date of issue, a brief description of what was sold including quantity and price, the GST amount payable or a statement that the total price includes GST, and the extent to which each sale is a taxable sale.
What extra information is needed for sales of $1,000 or more?
A tax invoice for a taxable sale of $1,000 or more must also show the buyer's identity or ABN. This is why larger invoices should always carry the customer's details, not just the supplier's.
Is an invoice without an ABN valid?
No, not for GST purposes. The supplier's ABN is a mandatory element of a valid tax invoice. Without it you cannot be sure the supplier is registered for GST, and the ATO can disallow the credit. Check an ABN on the public ABN Lookup register if in doubt.
Can I claim GST on an invoice that just says 'Invoice'?
Not safely. The document must be identifiable as a tax invoice — the words 'Tax invoice' need to be prominent. A document headed 'Invoice' or 'Statement' alone does not meet the requirements, even if every other detail is correct.
What if an invoice covers both taxable and GST-free items?
The invoice must clearly show which items are taxable. For mixed sales, each taxable sale must be identifiable, and the GST amount must relate only to the taxable portion. A single GST figure against a list of mixed items, with no way to tell which items attracted it, does not satisfy the requirements.
I paid for something but never got a tax invoice. What do I do?
Ask the supplier for one — they must provide it within 28 days of your request. If it still does not arrive, keep the evidence you have (payment records, correspondence, the supplier's ABN) and speak to your BAS agent or the ATO about whether the credit can still be supported.
How long do I need to keep tax invoices?
Five years from when the record was prepared or the transaction was completed, whichever is later. Electronic copies are fine — a clear photo or PDF of the invoice carries the same weight as the paper original, provided it is legible and retrievable.
This article is general information and is not tax advice. Tax invoice requirements are set by the ATO and can change. Confirm anything material with a registered tax or BAS agent, or with the ATO.
Clients sitting on invoices you need?
DocChaser finds transactions in Xero with no tax invoice attached, requests the missing documents from your client in one batch, and pushes approved files back onto the transaction — so every credit you claim has its evidence behind it.
Start free trial