Tax Invoice Requirements Australia: ATO Rules (2026)
Tax invoice requirements in Australia explained: the ATO's seven details, ABN, the $1,000 buyer rule, GST-registered vs not, RCTIs, and Peppol e-invoicing.
Quick answer: Tax invoice requirements in Australia are set by the ATO. A valid tax invoice must show that it is a tax invoice, the seller's identity and ABN, the issue date, a description with quantity and price, the GST amount, and which items are taxable. For sales of $1,000 or more it must also show the buyer's identity or ABN. Only GST-registered businesses can issue one.
If you are registered for GST in Australia, the tax invoice is what lets your business customers claim GST credits. Get it wrong and their claim can be denied, which usually means a phone call to you. This guide covers the ATO's tax invoice requirements in plain English, what changes at $1,000, what to do if you are not registered for GST, how recipient-created tax invoices work, and where Peppol e-invoicing fits. You can build a compliant tax invoice in a couple of minutes with our free invoice generator; for the general concept across countries, see our tax invoice guide.
Important: This is general information, not tax or legal advice. Check the ATO's tax invoices guidance or ask a registered tax agent for your situation, as rules and thresholds can change.
ATO tax invoice requirements for sales under $1,000
The ATO lists seven details a tax invoice must contain enough information to identify:
- That the document is intended to be a tax invoice (the words "Tax invoice" at the top is the usual way)
- The seller's identity (business or legal name)
- The seller's Australian Business Number (ABN)
- The date the invoice was issued
- A brief description of the items sold, including the quantity (if applicable) and the price
- The GST amount (if any) payable
- The extent to which each sale on the invoice is a taxable sale
On point 7: if every item is taxable, a total GST line is enough. If you mix taxable and GST-free items, mark which lines include GST. Showing a GST-inclusive total with a statement such as "Total price includes GST" is acceptable where every item is taxable, because the GST is one-eleventh of the total.
Tax invoices of $1,000 or more: the buyer's identity
For a taxable sale of $1,000 or more (including GST), the tax invoice must also show the buyer's identity or the buyer's ABN. In practice, include both the buyer's legal or business name and ABN; it avoids queries from the buyer's accounts team. Our guide to the tax ID on an invoice explains how the ABN compares with other countries' numbers.
| Field | Under $1,000 | $1,000 or more |
|---|---|---|
| Words "Tax invoice" (or equivalent intent) | Required | Required |
| Seller's name and ABN | Required | Required |
| Issue date | Required | Required |
| Description, quantity and price | Required | Required |
| GST amount and taxable extent | Required | Required |
| Buyer's identity or ABN | Not required | Required |
A good habit is to also include an invoice number, due date and payment details, even though they are not on the ATO's list. They make your invoice easier to pay and to match.
When you must issue a tax invoice
- If a GST-registered customer asks for one, you must provide it within 28 days.
- You do not have to provide one for a sale of $82.50 or less including GST, even if asked, although you can.
- Your customer generally needs a valid tax invoice to claim a GST credit for purchases over $82.50 (GST-inclusive). For smaller purchases they can rely on other records such as a receipt.
The tax invoice can be paper or electronic, so a PDF you email is fine. You must keep copies of the invoices you issue and receive for five years. Our guide on how long to keep invoices compares Australia with other countries.
Not registered for GST? Issue an invoice, not a tax invoice
You must register for GST once your GST turnover reaches $75,000 a year ($150,000 for non-profit organisations), and some activities, such as providing taxi or ride-sourcing services, require registration regardless of turnover. Below the threshold registration is optional.
If you are not registered:
- Do not call your document a tax invoice.
- Do not charge or show GST.
- Do show your ABN if you have one. If you supply to another business without quoting an ABN, the payer may have to withhold tax from the payment at the top marginal rate.
- A short note such as "No GST has been charged" or "Supplier not registered for GST" helps customers.
Sole traders who are just starting out often fall in this group. Our guide on invoicing without a registered business covers the basics.
Worked example: a mixed-supply tax invoice over $1,000
A Brisbane wholesale bakery supplies a café. Plain bread is GST-free, while cakes and soft drinks are taxable. Because the total is over $1,000, the café's name and ABN must appear.
| Description | Qty | Unit price (ex GST) | Amount (ex GST) | GST |
|---|---|---|---|---|
| Sourdough loaves (GST-free) | 200 | $4.00 | $800.00 | $0.00 |
| Celebration cakes (taxable)* | 30 | $15.00 | $450.00 | $45.00 |
| Soft drinks, 375 ml (taxable)* | 48 | $2.50 | $120.00 | $12.00 |
| Totals | $1,370.00 | $57.00 | ||
| Total including GST | $1,427.00 | |||
The maths: $800 + $450 + $120 = $1,370 excluding GST. GST at 10% on the taxable items: $450 × 10% = $45, plus $120 × 10% = $12, giving $57. Total $1,427. The asterisk with a footnote ("* denotes taxable item") satisfies the "extent taxable" requirement. Whether a particular food is GST-free can be technical, so check the ATO's detailed food list if you sell food. You can check the GST arithmetic with our sales tax calculator.
Recipient-created tax invoices (RCTIs)
Sometimes the buyer is better placed than the supplier to know the final value, for example a processor buying produce by weight and grade, or a business paying commissions. In those cases the buyer can issue a recipient-created tax invoice (RCTI) instead of the supplier issuing a tax invoice. Conditions:
- Both the supplier and the buyer are registered for GST when the RCTI is issued.
- There is a written agreement that the buyer will issue RCTIs and the supplier will not issue tax invoices for those sales. It can be a separate document or embedded in the RCTI.
- The agreement is current when the RCTI is issued.
- The supplies are of a type the Commissioner has approved in the current RCTI determination.
An RCTI must carry the words "Recipient created tax invoice" and the same core information as a tax invoice, with the supplier's details and ABN. The buyer generally issues it within 28 days and keeps a copy. If the value later changes, the equivalent correction is a recipient-created adjustment note, similar in principle to a credit note.
Adjustment notes
If the price changes after you have issued a tax invoice (a discount, a return, a cancelled order), and the change alters the GST, you issue an adjustment note rather than editing the original. It shows the words "Adjustment note", your details and ABN, the date, the original invoice reference, the change in price and the change in GST. Our guide to correcting an invoice covers the general approach.
Peppol e-invoicing in Australia
Australia adopted the Peppol framework for e-invoicing, with the ATO acting as the Peppol Authority for the country. Key points as of October 2026:
- Commonwealth government agencies must be able to receive Peppol e-invoices, and government policy encourages paying e-invoices quickly.
- Business-to-business e-invoicing is voluntary. There is no general B2B mandate.
- Your Peppol ID is usually based on your ABN (scheme 0151).
- You connect through an accredited access point, often built into accounting software.
A Peppol e-invoice can be a valid tax invoice as long as it contains the required information. Our explainer on what Peppol is covers the four-corner model in detail.
Making your tax invoice with our generator
Australia has no e-invoicing mandate for most businesses, so a PDF tax invoice is normal. Our generator is free, runs in your browser without an account, saves drafts in your browser's local storage and downloads a PDF. Enter "Tax invoice" as the title, add your ABN in the tax ID field, set GST at 10% on taxable lines and 0% on GST-free lines, and add the buyer's ABN for sales of $1,000 or more. The Ocean template gives a clean layout. Our tool does not send e-invoices via Peppol; if a government customer requires that, use accounting software with Peppol access.
Next step
Open your most recent invoice and check it against the seven ATO details and the $1,000 rule. If anything is missing, fix your template now so every future invoice is right, then create your next one in the generator and keep the PDF with your records.
Frequently asked questions
What must be on a tax invoice in Australia?
For sales under $1,000, the ATO requires enough information to identify seven things: that it is intended to be a tax invoice, the seller's identity, the seller's ABN, the date of issue, a brief description of what was sold including quantity and price, the GST amount, and the extent to which each sale is taxable. For sales of $1,000 or more, it must also show the buyer's identity or ABN.
Can I issue a tax invoice if I am not registered for GST?
No. Only GST-registered businesses can issue tax invoices and charge GST. If you are not registered, issue an ordinary invoice that shows your ABN and does not include GST or call itself a tax invoice.
Do I have to give a tax invoice for small sales?
You must provide a tax invoice within 28 days if a customer asks for one, except for sales of $82.50 or less including GST. Many businesses give one for every business sale anyway, because customers need it to claim GST credits.
What is a recipient-created tax invoice (RCTI)?
An RCTI is a tax invoice issued by the buyer instead of the supplier, used where the buyer is better placed to work out the value of the sale. Both parties must be registered for GST, they must have a written agreement, and the supply must be of a kind the ATO has approved for RCTIs.
Is e-invoicing mandatory in Australia?
As of October 2026 there is no general B2B e-invoicing mandate. Australia uses Peppol for e-invoicing, Commonwealth government agencies must be able to receive Peppol e-invoices, and businesses can adopt it voluntarily through an accredited access point.
How long must I keep tax invoices in Australia?
The ATO generally requires you to keep tax invoices and other business records for five years from when you prepared or obtained them, or from when you completed the transaction, whichever is later. Records can be paper or digital as long as they are complete, legible and can be produced if the ATO asks. Some records, such as those for capital gains, may need to be kept longer.
Can I issue an Australian tax invoice in a foreign currency?
Yes, but the GST payable must be clearly ascertainable. You can show the GST amount in Australian dollars, or show it in the foreign currency with enough information, such as the exchange rate used, for the GST in Australian dollars to be worked out. GST is reported in Australian dollars on your BAS, so keep your conversion method consistent.
When do I have to register for GST in Australia?
You must register when your GST turnover reaches $75,000 or more ($150,000 for non-profit organisations), and taxi and ride-sourcing drivers must register regardless of turnover. Below the threshold registration is optional. Once registered, you charge GST on taxable sales and issue tax invoices. Check the ATO website for the current thresholds and special cases.
Can I claim GST credits without a tax invoice?
For purchases over $82.50 including GST, you generally need a valid tax invoice before you can claim the GST credit. For purchases of $82.50 or less, other documents such as a receipt showing the GST can be enough. If a supplier has not given you a tax invoice, ask for one, because they must provide it within 28 days of your request.
Can one document be both a tax invoice and a receipt?
Yes. If the customer has already paid, a single document can serve as both, as long as it includes all the tax invoice details and shows that payment was received. Many businesses label it "Tax invoice" and mark it as paid with the payment date. Our free generator lets you add the amount paid and balance due, so a paid tax invoice is easy to produce.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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