What is a VALID Tax Receipt or Tax Invoice?

Requirements of tax invoices

Tax invoices for sales under $1,000

Tax invoices for taxable sales of less than $1,000 must include enough information to clearly determine the following seven details:

    1. that the document is intended to be a tax invoice
    2. the seller’s identity
    3. the seller’s Australian business number (ABN)
    4. the date the invoice was issued
    5. a brief description of the items sold, including the quantity (if applicable) and the price
    6. the GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, such as a statement which says ‘Total price includes GST’
    7. the extent to which each sale on the invoice is a taxable sale

Tax invoices for sales of $1,000 or more

Tax invoices for sales of $1,000 or more need to show the buyer’s identity or ABN.

If your tax invoices meet the requirements for sales of $1,000 or more, you can also use them for sales of lesser amounts.

Example shows:

    • GST included in each line item
    • the sale is clearly identified as being fully taxable by the words ‘Total price includes GST’
    • the buyer’s identity for sales over $1,000

Taxable and non-taxable sales

A tax invoice that includes taxable and non-taxable items that are either GST-free or input-taxed, must clearly show which items are taxable. In addition, the tax invoice must also show:

    • each taxable sale
    • the amount of GST to be paid
    • the total amount to be paid.

NOTE: an EFTPOS receipt from the machine is not a valid Tax Receipt, nor are the following:

   

Recipient-created tax invoices (RCTI)

In most cases, tax invoices are issued by a supplier. However, in special cases, you, as the purchaser or recipient of the goods or services, may issue a tax invoice for your purchases. This is known as a recipient-created tax invoice (RCTI).

When you can issue an RCTI

You can issue an RCTI if:

  • you and the supplier are both registered for GST
  • you and the supplier agree in writing that you may issue an RCTI and they will not issue a tax invoice
  • the agreement is current and effective when you issue the RCTI
  • the goods or services being sold under the agreement are of the type that we have determined can be invoiced using an RCTI.

Further Information:https://www.ato.gov.au/business/gst/tax-invoices/

A Girl Friday is experienced and Qualified to ensure your accounts comply to these requirements every day