You can download a printable version of Valid tax invoices and GST credits [118kB] here in Portable Document Format (PDF).
You can order a printed copy by noting the full title of the publication and either:
|
Terms we use:
|
When we say
- GST credit, we are referring to the GST term input tax credit
- sale and purchase, we are referring to the GST terms supply and acquisition.
Tax invoices are important documents for the operation of the GST system. Tax invoices must contain certain information to be valid. These requirements are detailed below see ‘What is a valid tax invoice’.
You must issue a tax invoice if any taxable sales you make of more than $82.50 (including GST), and the purchaser requests it.
If you make taxable purchases for business purposes, you can use the tax invoices you receive to claim the correct amount of GST credits for those purchases.
To claim a GST credit for purchases that cost more than $82.50 (including GST), you must be registered for GST and have a valid tax invoice or recipient created tax invoice (RCTI). If you use an incorrect or incomplete tax invoice to claim a GST credit, the GST credit may not be allowed.
To claim GST credits for purchases that cost $82.50 or less (including GST), you must keep documents such as cash register dockets, receipts or invoices to support your claims.
You must also keep your tax invoices and other GST records for five years.
|
Your supplier must be registered for GST before you can claim a GST credit on a purchase. If you are in doubt you can:
- ask if the supplier is registered for GST
- check the Australian Business Register (ABR) at www.abr.gov.au
- phone 13 72 26 to confirm the supplier’s Australian business number (ABN) is valid
- phone us on 13 28 66 for advice.
|
What is a valid tax invoice?
A valid tax invoice for taxable sales that total less than $1,000 must contain:
- the words ‘tax invoice’ stated prominently
- the name of the supplier
- the ABN of the supplier
- the date of issue of the tax invoice
- a brief description of the goods or services sold
- the total price of the sales (including GST).
Where the GST to be paid is:
- exactly one-eleventh of the total price, show the GST amount separately or provide a statement such as ‘total price includes GST’,or
- less than one-eleventh of the total price, show the GST amount and the total amount excluding GST for the sales.
A valid tax invoice for taxable sales that total $1,000 or more must contain:
- the words ‘tax invoice’ stated prominently
- the name of the supplier
- the ABN of the supplier
- the name of the recipient
- the address or ABN of the recipient
- the date of issue of the tax invoice
- the quantity of the goods or the extent of the services sold
- a brief description of the things sold
- the total price of the sale (including GST).
Where the GST to be paid is:
- exactly one-eleventh of the total price, show the GST amount separately or provide a statement such as ‘total price includes GST’
- less than one-eleventh of the total price, show the GST amount and the total amount excluding GST for the sales.
A valid tax invoice for both a taxable sale and either a GST-free or input taxed sale, must also:
- clearly identify each taxable sale
- show the total amount of GST to be paid
- show the total amount payable for the sales.
Your tax invoice must contain this information before you use it to work out the correct amount of GST credit you can claim. This is because the amount of GST included on such an invoice will be less than one-eleventh of the total price you are liable to pay.
|
Terms such as ‘total price includes GST’ or similar wording are not sufficient for invoices for both taxable sales and either a GST-free or input taxed sales.
|
What is a recipient created tax invoice?
A recipient created tax invoice (RCTI) is a tax invoice that is issued by the recipient of the goods and/or services rather than the supplier. RCTIs can only be issued by a recipient if:
- the recipient and the supplier are both registered for GST
- the sales for which the recipient can issue a RCTI are agreed to in writing by the recipient and the supplier either in a separate written agreement specifying the supplies to which each agreement relates or embedding this information or specific terms, as outlined in the Legislative Instrument, in the tax invoices they issue
- the agreement is current and effective when the RCTI is issued
- the goods or services being sold under the agreement are of the type that we have determined can be invoiced using RCTIs.
|
We have made legislative determinations about the types of sales of goods or services that can be invoiced using RCTIs. For more information, phone us on 13 28 66 or visit our legal database at law.ato.gov.au and search using the term ‘RCTI’.
|
To be valid, a RCTI must contain:
- the words ‘recipient created tax invoice’ stated prominently
- the name of the supplier
- the ABN of the supplier
- the name of the recipient
- the ABN of the recipient
- the date of issue of the tax invoice
- the quantity of the goods or the extent of the services sold
- a brief description of the things sold
- the total price of the sale (including GST).
If the RCTI is for taxable sales only, it must also:
- provide a statement such as ‘total price includes GST’
- show the total price and a statement to the effect that the GST shown is payable by the supplier.
If the RCTI is for both a taxable sale and either a GST-free or input taxed sale, it must also:
- clearly identify each taxable sale
- show the total price
- show the total amount of GST payable separately and a statement to the effect that the GST shown is payable by the supplier.
The recipient must:
- issue the original or a copy of the RCTI to the supplier within 28 days of when the sale is made or when the value of the sale is determined
- retain the original or a copy of the RCTI
- reasonably comply with its obligations under the taxation laws
- not issue a document that would otherwise be an RCTI, on or after the date when they or the supplier has failed to comply with any of the requirements of RCTIs.
|
For more information about recipient created tax invoices, refer to Goods and Services Tax Ruling GSTR 2000/10 Recipient created tax invoices.
|
If you buy taxable goods or services that cost more than $82.50 (including GST), your supplier must provide you with a tax invoice within 28 days after you request one.
Tax invoices that contain incorrect or incomplete information are not valid. If you receive a tax invoice that is incomplete or incorrect, you should ask your supplier to replace it with a complete and correct tax invoice.
If you wish to claim a GST credit but your supplier does not give you a valid tax invoice within the 28 day period, you can seek our permission to claim the GST credit by providing us with the following information:
- your name, contact details and ABN
- documents relating to the purchase
- the name, address and ABN (if known) of the supplier
- the nature, purpose and quantity of the purchase
- the amount paid or payable, and the amount of GST included
- the steps you’ve taken to obtain a tax invoice.
|
To request our permission to claim a GST credit you should:
- email us at GSTmail@ato.gov.au
- write to GST General Technical Advice, PO Box 9935 in your capital city.
|
If you claimed a GST credit without having a valid tax invoice, you can write to us explaining your circumstances and ask that the tax invoice be treated as valid.
If we discover a claim of this nature, for example during an audit, we will usually treat the tax invoices as valid and allow your claim if you:
- are entitled to the GST credit and
- have made a genuine attempt to comply with the requirement to hold a tax invoice.
In November 2004, we issued a practice statement that explains when we will treat a document that is not a tax invoice as a valid tax invoice.
If you claim a GST credit without a tax invoice or with an invalid tax invoice, we may:
- treat your tax invoice as being valid or
- treat some other document as a valid tax invoice.
Our decision to allow your claim will depend on the details you provide.
|
For more information about how we deal with GST credits claimed with invalid or missing tax invoices, refer to PS LA 2004/11 The Commissioner’s discretions to treat a particular document as a tax invoice or adjustment note.
|
The practice statement applies to decisions we made about tax invoices from 1 July 2000. If you claimed a GST credit after 1 July 2000 and we disallowed the claim because you didn’t have a valid tax invoice, you can request a review if you believe our decision was not made in accordance with the policy in the practice statement.
You cannot amend a disallowed claim of this nature by:
For a copy of any of the publications referred to in this fact sheet or if you need more information, you can:
- visit our website at www.ato.gov.au
- phone 13 28 66
- write to us at, PO Box 9935 in your capital city.
If you do not speak English well and want to talk to a tax officer, phone the Translating and Interpreting Service on 13 14 50 for help with your call.
If you have a hearing or speech impairment and have access to appropriate TTY or modem equipment, phone 13 36 77. If you do not have access to TTY or modem equipment, phone the Speech to Speech Relay Service on 1300 555 727.
Last Modified: Tuesday, 21 July 2009
Subscribe
