Tax invoice
Tax invoice example for Australia with GST free and taxable items
An Australian tax invoice must let the buyer work out the GST they can claim, which matters most when some lines carry GST and some do not. This example from a Brisbane produce supplier to a cafe mixes GST free fruit, vegetables and eggs with taxable packaging and cleaning products, shows GST line by line, and prints the buyer's ABN because the total is over $1,000.
The invoice, page by page
The invoice as the client downloads and prints it.
The pricing, line by line
- Hass avocados
- 6 × $48.00
- Mixed salad leaves
- 10 × $14.00
- Free range eggs
- 20 × $7.50
- Roma tomatoes
- 15 × $5.20
- Lemons
- 8 × $4.80
- Compostable coffee cups, 8 oz
- 2 × $92.00
- Kitchen degreaser
- 4 × $18.50
- Paper towel rolls
- 3 × $34.00
- Tax
- $36.00
- Total
- $1,090.40
Section by section
- Header
- The supplier's name, phone, website, suburb and accounts email, and the invoice number INV-2614.
- Bill to and dates
- The cafe's company name, address, accounts email and ABN, with issue and due dates and the amount due.
- Title
- Tax invoice, the supplier's ABN and the order number.
- Lines
- Eight items with quantity and unit, unit price, tax rate and amount: five GST free produce lines and three taxable lines.
- Totals
- Subtotal, GST, total and amount due.
- Notes and bank details
- Which goods carry GST and the supply date, then the account and the reference to quote.
What an Australian tax invoice must show
The ATO lists what a tax invoice needs: that it is intended to be a tax invoice, the seller's identity and ABN, the date of issue, a brief description of what was sold with quantity and price, the GST amount if any, 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. This invoice shows every item. The words Tax invoice and the supplier's ABN are in the invoice title, because the business block at the top prints the name and contact details only. The tax column answers the extent each sale is taxable, line by line, which is the requirement most often missed on mixed invoices.
How the GST is worked out here
Produce is GST free: six trays of avocados, ten kilograms of salad leaves, twenty dozen eggs, fifteen kilograms of tomatoes and eight of lemons come to $694.40 with no GST. Two cartons of cups, four degreasers and three cartons of paper towels are taxable: $360 before GST, with $36 of GST. The subtotal is $1,054.40 and the total $1,090.40. GST is worked out per line and rounded, the same way the totals of every proposal and invoice in the product are calculated. Because the total is over $1,000, the buyer's ABN is required, and it is printed in the Bill to block from the client record.
How to adapt this invoice
If every line is taxable, the per line column is still useful but not required; the GST total is enough. If nothing is taxable, do not call the document a tax invoice; an invoice for GST free sales only does not need GST shown. Put your ABN where the buyer will see it, and add the buyer's ABN for sales of $1,000 or more. Use the notes for anything the buyer's accountant needs, such as the supply date or a purchase order. Keep bank details and the reference together so a bank transfer can be matched, and send the pay link for card payment.
What makes this invoice work
GST is shown line by line
Five produce lines carry no tax rate and three packaging and cleaning lines carry 10%. Because the invoice mixes GST free and taxable goods, the buyer's bookkeeper can see exactly which lines the GST on the total belongs to.
It carries both ABNs
The supplier's ABN is in the invoice title and the cafe's ABN is in the Bill to block. The ATO requires the buyer's identity or ABN on a tax invoice of $1,000 or more, and this one totals over $1,000.
The note explains the tax
A short note says which goods are GST free and which are taxable, and the date of supply. It saves the call from the cafe's accountant asking why GST is only on part of the invoice.
Questions people ask
What makes an invoice a tax invoice in Australia?
It must state that it is intended to be a tax invoice and show the seller's identity and ABN, the issue date, a description of what was sold with quantities and prices, the GST, and the extent each item is taxable. Sales of $1,000 or more must also show the buyer's identity or ABN. This example shows all of them.
How do I show GST free items on a tax invoice?
Show which lines carry GST and which do not. This example uses a tax column: produce lines show no rate and packaging lines show 10%, so the buyer can see that the $36 of GST relates only to $360 of taxable goods. A note explains the split in words.
When does a tax invoice need the buyer's ABN?
When the total is $1,000 or more, the tax invoice must show the buyer's identity or ABN. This invoice totals $1,090.40, so the cafe's ABN is printed in the Bill to block. Adding it on smaller invoices does no harm and saves questions later.
Is fresh food GST free in Australia?
Most basic fresh food, such as fruit, vegetables and eggs, is GST free, while prepared food, packaging and cleaning products are generally taxable. The ATO's guidance on GST and food sets out the detail. This invoice applies that split line by line.
How quickly must I give a tax invoice?
If a GST registered buyer asks for one, you must give a tax invoice within 28 days of the request for sales over $82.50 including GST. Sending it with the goods, as this supplier does with every delivery, avoids the request altogether.
Can a customer pay this invoice by card?
Yes, if the supplier has connected Stripe. Each issued invoice has a pay link that opens a page with the amount due, the lines and a Pay now button through Stripe Checkout, with the money going to the supplier's own account. Bank details on the invoice cover customers who prefer a transfer.
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