Sales Invoices are required to contain specific information to be considered a valid tax invoice by the Australian Taxation Office. Failure to comply could mean that 46.5% tax is deducted from the payment to you and instead remitted to the ATO.

When you make a taxable sale of more than $82.50 (including GST), your GST-registered customers need a tax invoice to claim a credit for the GST in the purchase price. Note this rule is about claiming GST. If a business wants to claim a tax deduction for an expense they need to have evidence, ie a receipt, invoice, photo, dairy notes. If a customer asks you for a tax invoice you must provide one within 28 days of their request. A tax invoice doesn’t need to be issued in paper form, it can be by an electronic format or e-invoice.

Here are six things you need to have tax compliant invoicing

1. That the document is intended to be a tax invoice
2. Clearly display your identity as the seller – full business name and address is recommended
3. Your ABN (Australian Business Number) must be on the document
4. The date the invoice was issued
5. The description of the product purchased by your customer, quantity and of course the price.
6. Display the GST separately and then the total value of what is sold (including GST) – Called a GST Exclusive Invoice or Total price of the sale (including GST) with the wording “Total price including GST” – Called a GST inclusive invoice
7. the extent to which each sale on the invoice is a taxable sale

NOTE:

If you have sales over $1000 on your tax invoice you are also required to add your customer’s identity or ABN.

 Here is an example of a tax invoice from the ATO Website:

For more information on Sales (tax) Invoices – here