How to write an invoice

Issuing invoices is one of the day to day activities when running a business, so it is important to know how to write an invoice in order to fulfil your obligations to your customers and to the ATO.

General Information

Customers that are registered for GST will need a tax invoice in order to claim credit for the GST for a taxable sale of more than $82.50 (including GST).

If a customer asks for a tax invoice you must provide one within 28 days of their request.

 

Type of invoices

Invoice type is determined by the business’s registration for goods and services tax (GST).

Tax Invoice – Issued by businesses that are registered for GST.

Invoice (regular invoice) – Issued by businesses that are not registered for GST. 

Tax Invoice
This invoice will be used if your business is registered for GST.

A tax invoice must include the following details:

  1. Document title : Tax Invoice

  2. Business name

  3. Australian Business Number (ABN)

  4. Invoice number

  5. Invoice date

  6. Description of goods or services including quantity (if applicable) and price.

  7. GST payable amount –  This can be shown separately for each line or if the GST amount is exactly 1/11 of the total invoice, then it is possible to state “Total price including GST”.
    A tax invoice that includes taxable and non-taxable items that are either GST-free or input-taxed, must clearly show which items are taxable. In addition, the tax invoice must also show: each taxable sale, the amount of GST to be paid, the total amount to be paid.

  8. If the total amount of the sale is at least $1,000, then the identity of the recipient (business name and ABN) must be added to the invoice.

Invoice (Regular Invoice) This invoice will be used if your business is NOT registered for GST.

A regular invoice must include the following details:

  1. Document title : Invoice

  2. Business name

  3. Australian Business Number (ABN)

  4. Invoice number

  5. Invoice date

  6. Description of goods or services including quantity (if applicable) and price.

  7. If the total amount of the sale is at least $1,000, then the identity of the recipient (business name and ABN) must be added to the invoice.

Additional Information

To make it easier for clients to pay and to minimise late payments, you would also like include the following information on your invoices:

  1. Due Date, Payment Terms

  2. Payment Methods

  3. Surcharges if applicable

  4. Contact Details

tax, invoice, paid