Guide · ABN & Tax Invoice · Australia

What makes an Australian tax invoice valid.

The ATO has specific rules about what counts as a "tax invoice" and what doesn't. Get them right and your customers can claim their GST credits; get them wrong and you have invoicing problems. This guide explains the ABN-on-every-invoice rules, the thresholds, and what each piece of paper must contain.

The short version. A "tax invoice" is a specific legal document under Australian GST law. For invoices over AUD $82.50 including GST, the ATO requires specific fields - the words "Tax Invoice", your ABN, the date, a description, and a clear statement of GST. For invoices over AUD $1,000, additional buyer information is required. If you're not registered for GST, you issue a regular "invoice", not a tax invoice.

i."Invoice" vs "Tax Invoice" - they're different documents

Australian GST law distinguishes between two types of invoice:

Regular invoice

If you're not registered for GST (turnover below AUD $75,000), you issue an "invoice". It doesn't carry GST, doesn't include the words "Tax Invoice", and looks like a typical business bill. Still needs your ABN if you have one - or the customer may need to withhold 47% under the No-ABN withholding rule.

Tax invoice

If you're registered for GST, your invoices over AUD $82.50 (including GST) must be "tax invoices" - a specific legal format under the GST Act. The words "Tax Invoice" must appear prominently. Your ABN, the date, GST amount, and totals must be clearly shown.

The distinction matters because your customer can only claim a GST credit (Input Tax Credit) if they hold a valid tax invoice. Send them a regular invoice when a tax invoice is required, and they may come back asking you to reissue.

ii.The Australian Business Number (ABN)

An ABN is your unique 11-digit identifier issued by the Australian Business Register. Every business operating in Australia should have one. Apply for one via abr.gov.au - it's free.

The ABN must appear on every invoice you issue. If you don't have one and you're issuing invoices for AUD $75+ to another business, the customer is legally required to withhold 47% of the payment under the "No-ABN withholding" rules. Practically: no ABN = you don't get paid in full.

For sole traders, the ABN is tied to your personal Tax File Number (TFN). For companies, it's tied to the company's Australian Company Number (ACN). VioBusiness's Business Profile has space for both ABN and ACN where applicable.

iii.Required fields for invoices over AUD $82.50

The ATO requires the following on any tax invoice over AUD $82.50 including GST:

The words "Tax Invoice" prominently displayed
Your business or trading name
Your ABN
The date of issue
A brief description of the items sold, including quantity where appropriate
The GST amount, or a statement that the price includes GST
The extent to which each sale on the invoice is a taxable sale

iv.Additional requirements for invoices over AUD $1,000

For invoices over AUD $1,000 including GST, you must also include:

The buyer's name or business name
The buyer's ABN, if they have one (for B2B sales)

Without these, the buyer cannot claim their GST credit. Common cause of "please reissue" requests from corporate clients.

v.GST handling - the 10% rules

Australian GST is a flat 10% on most taxable supplies. Simpler than many countries' VAT systems. Key rules:

Register at AUD $75,000+ turnover (AUD $150,000 for not-for-profits). Once registered, charge 10% on most supplies.
GST-free supplies: Basic food, most education and health, exports to overseas customers. You don't charge GST but can still claim input tax credits.
Input-taxed supplies: Financial services and residential rent. No GST charged, no input credits.
Display GST inclusive prices to consumers. B2C pricing must show the GST-inclusive total prominently.

For most freelance and small business situations, the workflow is: set 10% as your default tax rate, override to 0% (GST-free) for exports, and the ATO is happy.

vi.How GST should appear on the invoice

Two acceptable formats:

Format A - separate GST line

Subtotal            AUD 1,000.00
GST 10%                  100.00
                    ───────────
Total              AUD 1,100.00

Format B - "Total includes GST"

Total              AUD 1,100.00
(Includes GST of AUD 100.00)

Either is acceptable. Format A is more common because it makes the maths clear; Format B is sometimes used for simpler retail invoices.

vii.Exports and GST-free supplies

Exports of goods and services to overseas customers are typically GST-free. Common cases:

Goods exported overseas within 60 days of payment
Services performed for non-residents who are outside Australia at the time
Digital products supplied to overseas businesses

On a GST-free invoice, mark each line as "GST-free" or set the GST rate to 0%. The total has no GST line, just the bare amount. The invoice still uses the "Tax Invoice" header if you're GST-registered.

viii.Recipient Created Tax Invoices (RCTIs)

An unusual case worth knowing about. Sometimes the buyer issues the tax invoice instead of the supplier - common in industries like primary production where the buyer calculates the supply amount (e.g. weighed milk at a dairy depot). Both parties must have a written RCTI agreement in place, and the document must be clearly marked "Recipient Created Tax Invoice".

Most freelancers and small businesses never encounter RCTIs. Skip this section unless you specifically deal with them.

ix.Common Australian invoice mistakes

Missing the words "Tax Invoice". A GST-registered business must include this on invoices over AUD $82.50. Without it, your customer can't claim their GST credit.
Forgetting the buyer's ABN on invoices over AUD $1,000. Common reason for "please reissue" requests.
Mixing GST-free and taxable items without clarity. Each line should clearly indicate if it's taxable or GST-free, especially when combined on one invoice.
Issuing a tax invoice without being GST-registered. If you're not registered, your invoice should say "Invoice" (without "Tax"), and shouldn't include a GST line.
Not putting the ABN on the invoice. Triggers No-ABN withholding (47% deducted by the customer).

x.How VioBusiness handles ABN and tax invoices

Set your ABN once in the Business Profile. Set GST rate as the default (typically 10%). VioBusiness automatically includes the "Tax Invoice" label on PDFs when a GST rate is set, and includes the ABN on every page. For invoices over AUD $1,000, the customer record includes their ABN if you've set it. Records are stored locally on your phone, CSV-exportable for your BAS preparations or your accountant.

For more on Australian invoicing see our Australia page and our BAS record-keeping guide.

Disclaimer: Australian GST rules have nuances for specific situations - margin scheme, second-hand goods, gambling supplies, agency arrangements. For complex cases consult a registered tax agent or the ATO directly.

xi.Get VioBusiness

The clean, offline-first invoice app for Australian small business. AUD $29.99 lifetime. ABN-aware tax invoices. More on the Australia page.

Download on theApp Store Get it onGoogle Play