How to create a tax invoice in Australia: Requirements & guide

If you’re registered for Goods and Services Tax (GST) in Australia, you’ll need to send a tax invoice as a legal requirement. This document helps you to get paid on time and record the sale correctly for income tax, while also giving the buyer the details they need to claim GST credits.

In this blog, we’ll show you exactly how to make a tax invoice, covering the key requirements for preparing an invoice and what to include in one to make it legally compliant.

What is a tax invoice

A tax invoice is an official, legal document issued by a seller to clearly signpost the amount of Goods and Services Tax (GST) payable on a transaction. It’s different from a standard invoice, which is simply a request for payment and doesn’t include any GST details.

In Australia, you’ll need to provide a tax invoice if you’re registered for GST and conclude any sale valued at $82.50 or more, including GST, which is charged at a 10% standard rate for most goods¹. You’ll also have to request one when making purchases to claim your own tax credits.

How is a tax invoice used in Australia?

Using tax invoices to accurately record GST is important for several reasons. Firstly, it allows companies registered for GST to claim back any tax paid as credits to reduce their tax liability — the amount they owe. All companies with a turnover above $75,000 must register for GST in Australia².

In addition to calculating tax owed, these invoices are also used for record-keeping and accounting. As a seller, you’ll need tax invoices to submit your business activity statements (BAS), which are lodged either every month, quarter, or year³, and to meet other important tax obligations.

To recap, tax invoices are used to help:

• Buyers claim GST credits
• Sellers maintain accurate financial and tax records
• Reduce errors and disputes

Tax invoice requirements in Australia

Tax invoices need to include the right information to meet legal and compliance requirements set by the ATO. These ensure invoices are created to a high standard and can be used for GST and BAS reporting.

Here’s what you need to keep in mind when preparing a tax invoice:

• Format and presentation - The ATO doesn’t recommend a single design, but the invoice must be clear and easy to read, and be labelled “Tax Invoice”.
• Key information - Tax invoices should clearly show the buyer and seller details (name, address, etc.), a brief description of what was sold, and the GST for each line item.
• Timing - You must send a tax invoice within 28 days of a buyer asking for one¹. In most cases, though, you’ll send invoices straight after the sale or when your goods or services have been delivered.
• Record keeping- Remember to add an invoice number so transactions are easier to track. ATO requires you to keep either a digital or physical copy of the tax invoice.
• Payment method and terms - After you’ve listed all the numerical details for sales and tax, you then need to outline your preferred payment method and deadline (either a specific date or a ‘within’ days deadline).
• Accuracy - Invoices should be complete and accurate. However, if you do make a mistake, reissue the invoice instead of amending it by hand.
• Business finances - The ATO recommends setting up a business banking account and using accounting software to accept payments and record sales using tax invoices¹.

How to create a tax invoice

Creating a tax invoice isn’t necessarily difficult. But there are steps you need to follow to make sure they are as accurate and detailed as they need to be — for you, your customers, and tax authorities.

1. Confirm your GST registration status

Only businesses registered for GST in Australia can issue tax invoices for taxable sales. Before you start, verify that you are registered for GST. You can check your status online using the myGOV account linked to the ATO.

2. Choose your invoicing method

There are lots of ways to create and send tax invoices. The options include:

• Accounting software - Generate ATO-compliant templates in software like QuickBooks or Xero.
• Invoice templates - Download templates as PDF or Word documents and then fill in the details manually for each sale.
• E-invoicing - The ATO says eInvoicing, or electronic invoicing, through the Pippl network cuts the cost of admin by around 60%⁴.

All of the above methods are fully legal and valid when all the required information is added to invoices.

3. Gather the required information

Next, it’s time to gather and make sense of all the details you need to add to your tax invoice. This includes:

• Your full, legal business name
• Your ABN
• Your contact info
• Your payment details
• The buyer’s details
• Descriptions of what you sold

4. Calculate GST correctly

GST is typically charged at 10% of the sale price in Australia⁵. In your tax invoice, you should include GST as a line item for each of the goods or services you sold, and also add a total price of everything at the end, which clearly states, “including GST.”

If you sell any GST-free items, make sure to mark them clearly so there’s no confusion for the buyer.

5. Create a tax invoice and review the details

Now it’s time to put it all together. Slowly and methodically go through each of the tax requirements outlined earlier and add the correct details using your preferred invoicing method.

When you’ve finished, double-check every line carefully for spelling and pricing. A quick review now can prevent delays and disputes later on.

6. Send and maintain your records

Once the invoice is ready, you can send it. There’s no specific requirement for sending methods — the ATO says you can use email, post, or even hand it over to someone in person. Just make sure to speak with the buyer first to find out their preferred method.

Tax invoices are usually sent immediately after the sale. However, if your customer requests a tax invoice, you’ll need to send one within 28 days.

You should also save a copy of the tax invoice for your records. ATO says you must keep business records, including tax invoices, for at least 5 years¹, so file them digitally in cloud storage or in your accounting software for future reference.

What to include in a tax invoice

Now, let’s look at some of the specific fields and information that must be included in a tax invoice in Australia.

For sales below $1,000, including GST, you’ll need to include:

• Tax invoice - It must be clear what the document is immediately, so the words ‘Tax Invoice’ should be added right at the top.
• Date - The date the invoice will be issued.
• Seller details - Your seller details, including your business name and address.
• ABN - Your Australian Business Number (ABN). You can register for an ABN for free in Australia.
• Item details - A list of the items sold, with quantities and unit pricing.
• GST - The amount of GST that needs to be paid, ideally for each line item at a rate of 10%.

When sales go above $1,000 including GST, you’ll have to add a couple of more details: the buyer’s identity (full name or business name) and ABN (if they have one).

Sample template of a tax invoice

Below is a simple tax invoice to use as a guide. You can create something similar by manually creating the fields in a tool like Word or Excel, or filling in a ready-made template.

Here’s what it looks like:

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TAX INVOICE

Business Name: Sports Clothing Co.
ABN: 12 345 678 901
Address: 123 George Street, Sydney
Date: 2 December 2025
Invoice Number: 001

Bill to:
Bright Wholesalers

ABN: 98 765 432 109

Subtotal (excl. GST): $1,350.00
GST (10%): $172.50
Total Amount Payable: $1,522.50 (inc. GST)

Payment Terms: Payment due within 14 days:
Payment Method
Bank: Wise Business

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Wise Business: Simplify your payment tracking

Keeping track of your tax invoices and matching them to payments is a critical part of running a compliant business. A Wise Business account helps you manage this by giving you local Australian account number details, that you can add directly to your invoice.

When a client pays you, the transaction can sync automatically with accounting software like Xero or QuickBooks. This connection reduces manual data entry and helps you maintain the accurate five-year financial records required by the ATO.

Expanding a business globally opens up exciting opportunities, but also new challenges like receiving payments across borders. Hidden foreign transaction fees and hefty currency conversions involved with international payments can eat into your profits and time.

Wise Business serves as a cost-effective solution where you can receive money from around the world at the speed and price of local payments.

Transform the way you receive payments with Wise Business:

• One-time fee of 65 AUD for local account details in 8+ currencies, including AUD, NZD, USD, and more—no recurring fees
• One account to hold, send, and convert money with no hidden fees or exchange rate markups
• Create and send professional invoices directly to your customers through Wise Business
• Create payment links to request money in specific currencies
• Seamlessly receive payments from customers, online sales, or PSPs like Stripe and Amazon.
• Wise is safe and secure - Trusted by 13 million people and counting

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

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Sources:

1. Business Gov Au - How to invoice
2. Business Gov Au - Register for goods and services tax
3. ATO - Due dates for lodging and paying BAS
4. ATO - Benefits of eInvoicing
5. ATO - Goods and services tax overview