Ensure your Tax Invoices are Correct by the ATO


Tax Invoices are central to the GST system in Australia. Without a tax invoice from a supplier, you are unable to claim GST on taxable purchases that you make. From July 2010, the invoice requirements have been streamlined. For example there is less need to distinguish invoices worth more or less than $1000.

We see several cases of incorrect invoices, especially from sole traders and new businesses, but to claim GST you are required by law to have a correct Tax Invoice.

Check you have these things when you issue your invoices –

  1. “Tax Invoice” words in prominent position (Not just INVOICE),or “Recipient Created Tax Invoice” if you create to replace a missing bill
  2. Issuer’s ABN (yours)
  3. Date of invoice issue
  4. Price of the supply and quantity and description
  5. Supplier name (yours)
  6. GST – state if included in price, or clearly stated separately as Total GST
  7. Non-GST items – no longer need to be clearly be identified
  8. Recipient (customer) name, their address OR ABN

There is no need to change invoices that you currently use, they will still comply. This is a simplification step.

Also, a non-complying invoice is now acceptable to use to claim GST and the recipient has a right to claim a VALID invoice, where the supplier must comply within 28 days.

See http://www.austlii.edu.au/au/legis/cth/bill_em/tla2010gamn2b2010519/

Categories Business Tax Tips & GST, Consulting

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