Tax Invoices in Australia (2026): What They Must Show, the A$1,000 Rule and RCTIs

If you're registered for GST, every business customer you sell to will eventually ask for a tax invoice — and if your invoice is missing something, their accountant will send it back, because without a valid one they can't claim the GST. This guide is for Australian sole traders, companies and bookkeepers who issue or receive invoices. It sets out exactly what the ATO requires on a tax invoice in 2026, the A$82.50 and A$1,000 thresholds, how to deal with mixed GST and GST-free sales, the rounding rules, recipient-created tax invoices (RCTIs), and what to put on an invoice if you're not registered for GST — with worked Australian-dollar examples.

Quick answer

A tax invoice is the document a GST-registered seller gives for a taxable sale. For sales under A$1,000 it must show seven details — that it's a tax invoice, your identity, your ABN, the issue date, what was sold (quantity and price), the GST amount, and how much of each sale is taxable. From A$1,000 it must also show the buyer's identity or ABN. You must provide one within 28 days of a request, unless the sale is A$82.50 or less.

• GST is 10%; 'Total price includes GST' is enough when GST is exactly one-eleventh

• Not registered for GST? Issue an ordinary 'Invoice' — never 'tax invoice', never GST

• Buyers need a valid tax invoice to claim GST credits on purchases over A$82.50

• RCTIs: the buyer issues the invoice, under a written agreement and the 2023 RCTI determination

• Keep invoices for 5 years

What a tax invoice is, and why the details matter

Under the GST law, a business that is registered for GST charges 10% on taxable sales and pays it to the ATO through its business activity statement. Its business customers, if they're registered too, claim that GST back as a GST credit (input tax credit). The tax invoice is the link between the two: it's the seller's written evidence of the GST charged, and the buyer's evidence that it paid GST it can claim.

That's why the content rules are strict. Section 29-70 of the GST Act and the regulations under it set out what information a tax invoice must contain, and the ATO's public ruling GSTR 2013/1 explains them in detail. A buyer generally can't claim a credit for a purchase over A$82.50 unless it holds a valid tax invoice when it lodges the BAS that includes the claim. If the invoice is defective, the buyer has to wait for a corrected one — and if you're the seller, that usually means a phone call, a reissued document and a delayed payment.

The good news is that the ATO's test is about substance, not layout. The document must contain enough information to clearly determine each required detail. There's no prescribed form, no mandatory template and no government number to quote apart from your ABN. A PDF emailed from accounting software, a printed docket from a point-of-sale system, or a handwritten book invoice can all be valid if the details are there.

A tax invoice only arises for a taxable sale by a business that is registered for GST. If you're under the A$75,000 registration threshold and haven't registered, you can't issue tax invoices at all — more on that below. If all your sales are GST-free (basic food, most medical services, exports), you don't need tax invoices for them, although a document showing the items as GST-free is good practice.

Tax invoice numbers for 2026

A$82.50

No tax invoice needed at or below

GST-inclusive

A$1,000

Buyer identity or ABN required from

28 days

To provide one after a request

5 years

Keep invoices for

When you must give a tax invoice

Two rules work together:

• On request, within 28 days. If a customer asks for a tax invoice, you must provide one within 28 days of the request. The clock runs from the request, not the sale.
• Not for sales of A$82.50 or less. You don't have to provide a tax invoice for a sale of A$82.50 or less, including GST. That figure is A$75 plus A$7.50 GST. Buyers can still claim credits on these small purchases using other records such as a docket or bank statement.

In practice, almost every business-to-business sale gets a tax invoice with the delivery or at the end of the job, because that's how you get paid. The request rule matters more in retail and hospitality, where a customer buys at the counter and then asks for a tax invoice for their business records.

Don't confuse the tax invoice rule with the receipt rule in the Australian Consumer Law. Under section 100 of the ACL, any business — registered for GST or not — must give a receipt or other proof of transaction for goods or services of A$75 or more (excluding GST), and must give one within 7 days if a customer asks for a smaller purchase. A receipt must show the supplier's name and ABN or ACN, the date, the goods or services and the price. A compliant tax invoice satisfies the receipt rule, but a simple receipt won't always satisfy the tax invoice rule.

The seven details for sales under A$1,000

For a taxable sale of less than A$1,000, the ATO says the tax invoice must contain enough information to clearly determine seven things.

The 7 details every tax invoice needs (sales under A$1,000)

0/7

• It's intended to be a tax invoice — the words 'Tax invoice' are the simplest way
• The seller's identity — your business or legal name
• The seller's ABN
• The date the invoice was issued
• A brief description of each item sold, with quantity (if applicable) and price
• The GST amount — shown separately, or 'Total price includes GST' if GST is exactly one-eleventh of the total
• The extent to which each item is a taxable sale

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A few points trip people up:

"Intended to be a tax invoice." Writing Tax invoice at the top is the easiest way to meet this. The ATO accepts one exception: a Peppol eInvoice issued under the A-NZ Invoice Specification with all mandatory data counts even if it doesn't carry those words, because the format itself signals its purpose.

Seller's identity and ABN. Use the name the ABN is registered to, or a registered business name linked to it. If you trade under a business name, showing both the business name and the ABN avoids confusion when a customer checks ABN Lookup. An ABN that's been cancelled, or one belonging to a related entity, is a common reason invoices are rejected.

Description, quantity and price. "Services rendered" isn't a description. Enough detail for the buyer to know what the charge is for — "Install 2 × split-system air conditioners, labour 6 hours" — is. You don't have to show the GST on each line; the total GST is enough if the invoice makes clear which lines are taxable.

The GST amount. Either show the GST as a separate figure, or, if every item is taxable and GST is exactly one-eleventh of the total, a statement such as Total price includes GST is enough. That shortcut doesn't work when the invoice mixes taxable and GST-free items.

Extent of taxable sale. On an invoice where everything is taxable, the GST line or the Total price includes GST statement does this job. On a mixed invoice, you need to mark which lines carry GST.

Sales of A$1,000 or more: add the buyer

For a taxable sale of A$1,000 or more (GST-inclusive), the tax invoice must also show the buyer's identity or the buyer's ABN. A company name, a person's name, or the buyer's ABN on its own will each do. If you sell to a member of a GST group, showing the buyer, the group, its representative member or another member that could have claimed the credit is acceptable. Where several people buy together, or co-owners sell together, the ATO wants each recipient (or each co-owner, or an agent co-owner) identified on the invoice.

You can use the A$1,000-plus format for every sale, however small. That's what most accounting software does, and it's the safest default: the customer's name is on every invoice, so you never have to think about which side of the line a sale falls.

Tax invoice, ordinary invoice or RCTI?

	Tax invoice	Ordinary invoice	Recipient-created tax invoice (RCTI)
Who issues it	GST-registered seller	Seller not registered for GST	GST-registered buyer, for a registered seller
Shows GST?	Yes, at 10% on taxable items	No — no GST is charged	Yes, payable by the supplier
Heading	'Tax invoice'	'Invoice' — never 'tax invoice'	'Recipient created tax invoice'
Buyer details	Required from A$1,000	Good practice	Both parties' ABNs required
Buyer can claim GST credit?	Yes	No	Yes
Extra conditions	Provide within 28 days of a request	None under GST law	Written agreement; supply type covered by the 2023 determination; issue within 28 days

Who issues it

Tax invoice

GST-registered seller

Ordinary invoice

Seller not registered for GST

Recipient-created tax invoice (RCTI)

GST-registered buyer, for a registered seller

Shows GST?

Tax invoice

Yes, at 10% on taxable items

Ordinary invoice

No — no GST is charged

Recipient-created tax invoice (RCTI)

Yes, payable by the supplier

Heading

Tax invoice

'Tax invoice'

Ordinary invoice

'Invoice' — never 'tax invoice'

Recipient-created tax invoice (RCTI)

'Recipient created tax invoice'

Buyer details

Tax invoice

Required from A$1,000

Ordinary invoice

Good practice

Recipient-created tax invoice (RCTI)

Both parties' ABNs required

Buyer can claim GST credit?

Tax invoice

Yes

Ordinary invoice

No

Recipient-created tax invoice (RCTI)

Yes

Extra conditions

Tax invoice

Provide within 28 days of a request

Ordinary invoice

None under GST law

Recipient-created tax invoice (RCTI)

Written agreement; supply type covered by the 2023 determination; issue within 28 days

Worked examples in A$

1. A plumber's invoice under A$1,000. Josh, a GST-registered plumber in Newcastle, replaces a hot water valve for a café. Labour is A$300 and parts A$180, both plus GST. His invoice reads Tax invoice, shows his business name and ABN, the date, "Labour 2.5 hours — A$300.00" and "Tempering valve × 1 — A$180.00", a subtotal of A$480.00, GST of A$48.00 and a total of A$528.00. That's all seven details. The café owner can claim A$48 as a GST credit on her next BAS.

2. The same plumber, A$1,000 or more. A week later Josh fits out a bathroom for a property manager: A$2,400 plus A$240 GST, total A$2,640. The invoice needs one more line — the buyer's identity or ABN. He adds "Bill to: Harbour Property Management Pty Ltd, ABN …". Without it, the agency's bookkeeper can't treat the document as a tax invoice and will ask him to reissue it.

3. A mixed sale at a grocer. A Brisbane deli sells a café customer A$400 of fresh fruit and bread (GST-free) and A$220 of soft drinks and confectionery including A$20 GST. The invoice must clearly mark which items are taxable — an asterisk with a key ("* taxable item") is common — and show the GST of A$20 and the total of A$620. Total price includes GST wouldn't be enough here, because the GST isn't one-eleventh of the total.

4. A sale under A$82.50. A Hobart stationery shop sells A$66 of printer paper (A$6 GST). It doesn't have to issue a tax invoice. Because the purchase is under A$75 excluding GST, it also doesn't have to give a receipt unless the customer asks — but it prints a docket anyway, and the docket happens to meet the tax invoice rules.

Build a compliant invoice in a couple of minutes with our free invoice generator, and check the GST on any price with the Australia GST calculator.

Work out the GST on an invoice

Add TaxRemove Tax

AmountTax Rate

10% (GST)0% (GST-free)

Net Amount (Before Tax)$2,400.00

Tax (10%)$240.00

Gross Amount (Including Tax)$2,640.00

Open the full GST Calculator (PDF, save, compare)

Mixed sales, rounding and digital invoices

Mixed taxable and non-taxable items. If a tax invoice covers both taxable items and GST-free or input-taxed items, it must clearly show each taxable sale, the amount of GST and the total amount payable. Where a single item is partly taxable — a hamper with food and non-food items, for example — you apportion the price on a reasonable basis; the ATO's ruling GST 2001/8 explains the methods.

Rounding. GST often comes out to a fraction of a cent. With one taxable item on the invoice, round to the nearest cent, with half a cent rounding up. With several taxable items, the ATO allows two methods. Under the total invoice rule, you add up the GST for all taxable items and round the total (or, if every line is GST-inclusive at exactly one-eleventh, total the GST-exclusive values, calculate GST on that, and round). Under the taxable supply rule, you work out the GST on each line, round each as your system requires, then add them up and round the result. You and your customers don't have to use the same method, so a one-cent difference between your figure and theirs isn't an error.

Digital invoices and eInvoicing. A tax invoice doesn't have to be on paper. An emailed PDF, an invoice inside a portal or a text-based invoice are all fine if they contain every required detail. Australia uses the Peppol network for eInvoicing, where invoices travel directly from the seller's software to the buyer's. Many accounting packages can send and receive Peppol invoices, and some large buyers and government agencies prefer them because they cut processing time.

Wine equalisation tax. If an invoice from a wine supplier only shows a figure at a WEG label, the ATO says the buyer needs further information before it's a valid tax invoice and the credit can be claimed.

Invoices when you're not registered for GST

Plenty of sole traders and side businesses earn less than A$75,000 a year and choose not to register. If that's you, you can still invoice — you just can't issue tax invoices.

The ATO says that if you're not registered for GST, your invoices must not include the words tax invoice; you issue an ordinary invoice. You also can't add GST to the price. Charging "GST" when you're not registered doesn't make the customer's credit valid — it just means you've collected money you aren't entitled to call tax, which creates a problem for both of you.

business.gov.au suggests an ordinary invoice should show:

• the word Invoice
• your business name, your ABN (if you have one) and contact details
• a unique invoice number and the date
• a description of the goods or services, with quantity and price
• the total amount and your payment terms
• the customer's name or business name.

None of those are dictated by the GST law, but they're what business customers expect and what makes chasing late payments easier. Quoting your ABN matters for another reason: a business that pays you more than A$75 (excluding GST) for a supply without an ABN on the invoice may have to withhold 47% of the payment and send it to the ATO. If a customer asks for a tax invoice, simply reply that you're not registered for GST; some sellers add a line such as No GST has been charged to head off the question.

Keep an eye on your turnover. Once your GST turnover reaches A$75,000 — or you expect it to — you must register within 21 days, and from your registration date your invoices become tax invoices. If you register late and backdate, you may owe GST on sales you invoiced without it. Our GST guide covers registration in detail, and ABN registration explains how to get the number your invoices need.

From ordinary invoices to tax invoices

Step 1

Not registered: 'Invoice', no GST

Step 2

GST turnover hits A$75,000

or you expect it to

Step 3

Register for GST

within 21 days

Step 4

Issue tax invoices

from the registration date

Recipient-created tax invoices (RCTIs)

Usually the seller writes the tax invoice. In some industries, though, the buyer knows the price before the seller does — a grain buyer grading a load, a scrap-metal yard weighing a delivery, a fund paying a financial adviser's commission. For those cases the GST law allows a recipient-created tax invoice: the buyer issues the tax invoice for its own purchase.

The rules are in section 29-70(3) of the GST Act and the Recipient Created Tax Invoice Determination 2023, which replaced 51 older industry-by-industry determinations from 14 June 2023. Under section 6 of the determination, three kinds of buyers can issue RCTIs:

• government related entities, for any taxable supply they acquire
• large business entities — broadly, those whose GST turnover (or GST group's turnover) is at or above the tax period turnover threshold of A$20 million — for any taxable supply they acquire
• other GST-registered business entities, but only where the buyer determines the value of the supply.

In every case both parties must be registered for GST when the RCTI is issued.

Issuing a valid RCTI

1. 1

   Put a written agreement in place

   Either a separate agreement that names the supplies, confirms both parties are registered for GST, says the buyer will issue RCTIs and the supplier won't issue tax invoices, and that each will tell the other if its GST registration ends — or the same terms embedded in the RCTI itself.

2. 2

   Check the supplier's GST status

   Confirm on ABN Lookup that the supplier is registered for GST before the first RCTI, and recheck periodically for ongoing suppliers.

3. 3

   Create the RCTI

   Include the normal tax invoice details, label it a recipient created tax invoice, show both parties' ABNs, and state that any GST is payable by the supplier.

4. 4

   Give the supplier a copy

   Within 28 days of the supply, or of the date you determine its value if that's later.

   Tip: With an embedded agreement, the supplier has 21 days to tell you it doesn't accept the terms.

5. 5

   Keep it

   Retain the original or a copy for 5 years, and stop issuing RCTIs as soon as any condition stops being met.

The ATO expects RCTI issuers to have strong systems — ideally automated ABN Lookup checks when each RCTI is generated. If a supplier has cancelled its GST registration and you keep issuing RCTIs, the documents aren't valid and the credits you claimed on them are wrong; the ATO's guidance is to make a voluntary disclosure and fix your process. For the supplier, the RCTI replaces its own tax invoice: it reports the GST shown on the RCTI on its BAS and doesn't issue a separate invoice for the same supply.

Correcting a tax invoice: adjustment notes

Once a tax invoice has been issued and reported, you don't edit it. If the price changes afterwards — a discount, a return, a cancelled part of the job — you issue an adjustment note that refers to the original invoice and shows the change in price and GST. Both you and your customer then make an adjustment on your BAS for the period in which you become aware of it. If the original invoice was simply missing a detail (a wrong ABN, no buyer name on a A$1,000-plus sale), reissue it as a replacement marked to show it supersedes the original, so the buyer isn't holding two tax invoices for the same sale.

Common mistakes and how to fix them

• Using the wrong entity. A company invoice that shows the director's sole-trader ABN, or a trust invoice showing the trustee company's ABN instead of the trust's, won't support a credit. Match the name and ABN to the entity that made the sale.
• Vague descriptions. "Consulting — March" may be enough for the client who ordered it but not for their auditor. Name the service and the period.
• No invoice date. The issue date is one of the seven details; a "due date" on its own doesn't satisfy it.
• Treating the A$1,000 line as GST-exclusive. The ATO's thresholds refer to the price of the sale including GST, so a A$950 plus A$95 GST sale is over the line.
• Not keeping copies. Keep copies of invoices you issue and receive for 5 years. A buyer that loses a tax invoice can ask the supplier for a copy; a supplier that can't provide one risks losing the customer.
• Claiming credits without the invoice. Buyers should hold the tax invoice before claiming the credit on their BAS. If it arrives late, claim in a later period — you generally have 4 years.

Official links

• ATO — Tax invoicesThe 7 details, A$1,000 rule, rounding and RCTIs
• ATO — Setting up your business invoicesTax invoice vs invoice if you're not registered
• Recipient Created Tax Invoice Determination 2023Who can issue RCTIs and the written agreement terms
• business.gov.au — InvoicingOrdinary invoices, receipts and eInvoicing
• ABN LookupCheck a supplier's ABN and GST registration

Next steps

Open your invoice template and check it against the seven details, then add a "Bill to" line so every invoice meets the A$1,000-plus standard. If you mix GST-free and taxable items, make sure each line shows whether GST applies. Create a compliant invoice with the free invoice generator, confirm your GST maths with the Australia GST calculator, and read our BAS guide to see how the GST on your invoices flows into your activity statement.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What must be on a tax invoice in Australia?

For a taxable sale under A$1,000, the ATO requires enough information to determine seven things: that the document is intended to be a tax invoice, the seller's identity, the seller's ABN, the issue date, a brief description of each item with quantity and price, the GST amount (or 'Total price includes GST' where GST is exactly one-eleventh), and the extent to which each sale is taxable. From A$1,000, add the buyer's identity or ABN.

Do I have to give a tax invoice for every sale?

No. A GST-registered seller must provide a tax invoice within 28 days if the customer asks for one, unless the sale is A$82.50 or less including GST. Many businesses issue one with every sale anyway because business customers need it to claim their GST credit. Separately, consumer law requires a receipt for purchases of A$75 or more.

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

A tax invoice is the document a GST-registered business issues for a taxable sale, showing the GST and the other details the GST law requires. A business that isn't registered for GST issues an ordinary invoice instead. The ATO says it must not use the words 'tax invoice', and it must not show or charge GST. A buyer can't claim a GST credit from an ordinary invoice.

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

Yes. Call it an 'Invoice', include your business name, ABN if you have one, the date, a description with quantity and price, and the total. Don't add GST or call it a tax invoice. If a customer asks for a tax invoice, you can explain that you're not registered and note that no GST has been charged. Once your GST turnover reaches A$75,000, you must register within 21 days.

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

An RCTI is a tax invoice the buyer issues instead of the seller — common for farm produce, scrap metal and commission-based work where the buyer works out the price. Both parties must be registered for GST, have a written RCTI agreement, and fall within the Commissioner's 2023 RCTI determination. The buyer must give the supplier a copy within 28 days and keep it for 5 years.

How long do I have to keep tax invoices?

Keep tax invoices you issue and receive for at least 5 years, in paper or electronic form. You need a valid tax invoice on hand when you claim a GST credit for a purchase over A$82.50, and you generally have 4 years to claim a credit you missed. RCTI issuers have a specific 5 years retention requirement under the 2023 determination.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 11 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Tax invoices — Australian Taxation Office · accessed 11 October 2026
2. 2.Setting up your business invoices — Australian Taxation Office · accessed 11 October 2026
3. 3.A New Tax System (Goods and Services Tax): Recipient Created Tax Invoice Determination 2023 (F2023L00785) — Federal Register of Legislation · accessed 11 October 2026
4. 4.Invoicing — business.gov.au · accessed 11 October 2026
5. 5.Commissioner's blog: receipt rules apply to all purchases — Consumer Protection WA · accessed 11 October 2026
6. 6.Tax invoice requirements — Xero · accessed 11 October 2026
7. 7.Invoices for Australian businesses: what you need to know — Sprintlaw · accessed 11 October 2026