Tax Invoice Requirements in Australia (2026)

Q: "What are the requirements for a tax invoice in Australia?\nA valid tax invoice must show the words \"tax invoice\", the seller's identity and ABN, the date, a description of the items, and the GST amount (or a statement that the total includes GST). For sales of $1,000 or more including GST, it must also show the buyer's identity or ABN. You only need a tax invoice to claim a GST credit on purchases over $82.50 including GST.\n{{\u003c /faq-item \u003e}}"

"A valid tax invoice must show the words “tax invoice”, the seller’s identity and ABN, the date, a description of the items, and the GST amount (or a statement that the total includes GST). For sales of $1,000 or more including GST, it must also show the buyer’s identity or ABN. You only need a tax invoice to claim a GST credit on purchases over $82.50 including GST."

Q: "What is the difference between an invoice and a tax invoice?\nA regular invoice requests payment and can be issued by any business. A tax invoice additionally documents the GST on a sale and can only be issued by a business registered for GST. A GST-registered buyer needs a valid tax invoice to claim an input tax credit on their BAS.\n{{\u003c /faq-item \u003e}}"

"A regular invoice requests payment and can be issued by any business. A tax invoice additionally documents the GST on a sale and can only be issued by a business registered for GST. A GST-registered buyer needs a valid tax invoice to claim an input tax credit on their BAS."

Q: "Do I need a tax invoice for purchases under $82.50?\nNo. For purchases of $82.50 or less (including GST) you can claim the GST credit using other records, such as a receipt or bank statement showing the supplier, date, and GST. Keeping a tax invoice anyway is good practice, but it isn't legally required below that threshold.\n{{\u003c /faq-item \u003e}}"

"No. For purchases of $82.50 or less (including GST) you can claim the GST credit using other records, such as a receipt or bank statement showing the supplier, date, and GST. Keeping a tax invoice anyway is good practice, but it isn’t legally required below that threshold."

Q: "What is a recipient-created tax invoice (RCTI)?\nAn RCTI is a tax invoice issued by the buyer instead of the seller, allowed in specific situations where the buyer determines the value of the sale. Both parties must be registered for GST, there must be a written agreement permitting RCTIs, and the document must state that it is a recipient-created tax invoice.\n{{\u003c /faq-item \u003e}}"

"An RCTI is a tax invoice issued by the buyer instead of the seller, allowed in specific situations where the buyer determines the value of the sale. Both parties must be registered for GST, there must be a written agreement permitting RCTIs, and the document must state that it is a recipient-created tax invoice."

Q: "Can I issue a tax invoice if I'm not registered for GST?\nNo. Only businesses registered for GST can issue tax invoices. If you're not registered, you issue a standard invoice or receipt, and you don't charge GST or show it on the document.\n{{\u003c /faq-item \u003e}}"

"No. Only businesses registered for GST can issue tax invoices. If you’re not registered, you issue a standard invoice or receipt, and you don’t charge GST or show it on the document."

Q: "How long do I need to keep tax invoices?\nThe ATO requires most business records, including tax invoices, to be kept for at least five years. Digital copies are fully accepted, provided they're clear, complete, and securely stored.\n{{\u003c /faq-item \u003e}}"

"The ATO requires most business records, including tax invoices, to be kept for at least five years. Digital copies are fully accepted, provided they’re clear, complete, and securely stored."

A valid Australian tax invoice must show 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 including GST, it must also show the buyer’s identity or ABN. Those are the essentials; the detail below covers the thresholds, how to issue one, and the special cases.

If your business is registered for GST, the tax invoice is the single most important document you handle. It’s what lets your customers claim their GST credits, and it’s what the ATO expects to see behind every GST claim you make. Get the details wrong and the invoice isn’t valid, which means a rejected credit and an awkward conversation at BAS time.

This guide covers exactly what a valid Australian tax invoice must include, the thresholds that change the rules, how to write one, and the special cases (like recipient-created tax invoices) that trip businesses up. For the broader picture of what a receipt is and how it differs from an invoice, start with our complete guide to receipts for Australian SMEs.

What is a tax invoice?

A tax invoice is a document that shows the GST included in a sale. It’s issued by a GST-registered seller and it’s the evidence a GST-registered buyer needs to claim an input tax credit on their Business Activity Statement (BAS).

It differs from a plain receipt or a standard invoice in one specific way: it must display the GST information the ATO requires. A regular invoice requests payment; a receipt confirms payment was made; a tax invoice does either of those and documents the GST so credits can be claimed. If you’re not registered for GST, you must not issue a tax invoice at all, you issue a regular invoice or receipt instead.

What must a valid tax invoice include?

The required details depend on the amount of the sale. There are two thresholds that matter.

Tax invoices for sales under $1,000 (including GST)

For a taxable sale of $82.50 (including GST) or more, a valid tax invoice must show:

The words “Tax invoice”, clearly stated
The seller’s identity (business or trading name)
The seller’s ABN
The date the invoice was issued
A description of the items sold, including the quantity and the price
The GST amount payable, or a statement that the total price includes GST (for example, “Total price includes GST”)
The extent to which each sale is a taxable sale (this can be shown by listing the GST against each line, or with a statement that all items include GST)

Tax invoices for sales of $1,000 or more (including GST)

For sales of $1,000 (including GST) or more, the tax invoice must include everything above, plus the buyer’s identity or ABN. This is the single most common reason a larger invoice gets rejected: the buyer’s details are missing.

The $82.50 threshold explained

You only need to hold a valid tax invoice to claim a GST credit when the purchase is more than $82.50 (including GST). Below that amount, you can claim the credit using other records, such as a receipt or bank statement that shows the supplier, date, and GST. It’s still best practice to keep a tax invoice for everything, but the legal requirement kicks in above $82.50.

How to write a tax invoice

If you’re issuing tax invoices, the process is straightforward once the required fields are in place:

Confirm you’re registered for GST. If you’re not, you issue a regular invoice, not a tax invoice.
Title the document “Tax invoice”.
Add your business name and ABN.
Add the issue date and an invoice number for your own records.
List each item with a description, quantity, and price.
Show the GST, either as a separate line, or with the statement “Total price includes GST” if GST is exactly one-eleventh of the total.
For invoices of $1,000 or more, add the customer’s name or ABN.
Send it, and keep a copy for at least five years.

The safest way to get this right every time is to have the tax invoice generated and captured automatically rather than assembled by hand, which is where spend management tools come in (more on that below).

Recipient-created tax invoices (RCTIs)

In most cases the seller issues the tax invoice. But in some industries, the buyer issues it instead, this is a recipient-created tax invoice (RCTI).

RCTIs are common where the buyer determines the value of the sale, for example in agriculture (where a processor weighs and grades produce) or in some services arrangements. For an RCTI to be valid:

Both parties must be registered for GST
There must be a written agreement that the recipient can issue RCTIs for the sales in question
The document must show it is a recipient-created tax invoice, not a standard tax invoice
All the normal tax invoice requirements still apply

If you receive or issue RCTIs, keep the written agreement on file, the ATO will expect to see it.

Common tax invoice mistakes to avoid

Missing the buyer’s ABN on invoices of $1,000+: the most frequent cause of rejected credits
Not showing GST clearly: “includes GST” is fine, but the GST treatment must be unambiguous
Issuing a tax invoice when not registered for GST: this isn’t allowed and can mislead your customers
Leaving off the words “tax invoice”: a document without them may not be accepted as one
Losing the invoice before BAS: a valid invoice you can’t find is the same as not having one

Is losing invoices before BAS a recurring problem? See how Budgetly captures every tax invoice automatically and files it against the transaction.

How Budgetly keeps your tax invoices compliant

For a GST-registered business, the hardest part of tax invoices usually isn’t the format, it’s making sure you actually have the valid document when you need it. Missing and misfiled tax invoices are the reason legitimate GST credits go unclaimed.

Budgetly is an AI-first spend management platform built for Australian SMEs. When someone spends on a corporate card or virtual card, they’re prompted to capture the tax invoice on the spot. Budgetly reads it, extracts the GST automatically, matches it to the transaction, and syncs the record to your accounting platform via Xero integration or MYOB. Finance gets audit-ready records without chasing anyone.

If your team is still keeping tax receipts by hand, our guide to tax receipts and how to keep them organised covers the record-keeping side, and for choosing a tool, see receipt management software for business.

Frequently asked questions

What are the requirements for a tax invoice in Australia?

A valid tax invoice must show the words “tax invoice”, the seller’s identity and ABN, the date, a description of the items, and the GST amount (or a statement that the total includes GST). For sales of $1,000 or more including GST, it must also show the buyer’s identity or ABN. You only need a tax invoice to claim a GST credit on purchases over $82.50 including GST.

What is the difference between an invoice and a tax invoice?

A regular invoice requests payment and can be issued by any business. A tax invoice additionally documents the GST on a sale and can only be issued by a business registered for GST. A GST-registered buyer needs a valid tax invoice to claim an input tax credit on their BAS.

Do I need a tax invoice for purchases under $82.50?

No. For purchases of $82.50 or less (including GST) you can claim the GST credit using other records, such as a receipt or bank statement showing the supplier, date, and GST. Keeping a tax invoice anyway is good practice, but it isn’t legally required below that threshold.

What is a recipient-created tax invoice (RCTI)?

An RCTI is a tax invoice issued by the buyer instead of the seller, allowed in specific situations where the buyer determines the value of the sale. Both parties must be registered for GST, there must be a written agreement permitting RCTIs, and the document must state that it is a recipient-created tax invoice.

Can I issue a tax invoice if I'm not registered for GST?

No. Only businesses registered for GST can issue tax invoices. If you’re not registered, you issue a standard invoice or receipt, and you don’t charge GST or show it on the document.

How long do I need to keep tax invoices?

The ATO requires most business records, including tax invoices, to be kept for at least five years. Digital copies are fully accepted, provided they’re clear, complete, and securely stored.