In this series, we review a range of common questions we receive regarding when it is appropriate to register for an ABN. A popular question surrounds invoicing, and the essentials to include on a typical tax invoice.

Do You Need an ABN to Invoice?

If the invoice is made in the course of an activity done as a private recreational pursuit or hobby and wholly of a private or domestic nature then you do not need an ABN to invoice.

However if you are invoicing a business and you don’t include ABN on your invoices then the business must withhold 49% from any payment they make to you and send the withheld amount to the Australian Taxation Office. You need to apply for an ABN if you are required to invoice businesses.

However you don’t have to withhold from payments if any of the following apply:

  • the supplier is not entitled to an ABN as they are not carrying on an enterprise in Australia.
  • the total payment you make to the supplier is $75 or less, excluding goods and services tax (GST)
  • the supplier is an individual under 18 years of age and your payments to that person are $350 or less each week
  • the goods or services are supplied through an agent who has quoted their ABN on an invoice or some other document relating to the supply
  • the goods or services supplied are wholly input taxed under GST
  • the entire payment you make is exempt income for the supplier

Apply for your ABN today. Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 700+ expert lawyers or to get answers to your legal questions.

Dominic Woolrych

Dominic is the CEO of LawPath, dedicating his days to making legal easier, faster and more accessible to businesses. Dominic is a recognised thought-leader in Australian legal disruption, and was recognised as a winner of the 2015 Australian Legal Innovation Index.