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What Information Needs to be Included in a Tax Invoice?

What Information Needs to be Included in a Tax Invoice?


When you are creating a tax invoice, you should ensure that the information is valid. The advice below only provides a small amount of advice. Therefore, if you are

25th September 2019

When you are creating a tax invoice, you should ensure that the information is valid. The advice below only provides a small amount of advice. Therefore, if you are looking for specific advice, it is recommended that you contact a taxation solicitor.

There is a list of voluntary standards that will help you in constructing the layout of the invoice. By law, you are required to keep a list of business records for at least five years. Fortunately, you have an option to keep it in either printed or electronic copies. Further, this will help you create your Business Activity Statement, income tax return and complete future tax obligations.

Tax Invoices for less than $1000

  1. You should include your business name within the tax invoice. Contact details are not necessary but can be an option. A startup should include their ABN as well. Further, the date you created the tax invoice should be written clearly.

2. Furthermore, a brief list of the items you have sold should be included as well. Although, the quantity and price of an item should go hand in hand with the list of items.

3. The GST amount payable should reside within your document if you have any. There are many options for you to display the GST per item. The first option is that you can display GST for each item in a separate column, or within the total price of all the items sold. The other option is used if you don’t want to display it separately. When doing so, you should ensure that you are using a statement like ‘Total includes GST’.

There is a requirement for you to clearly state the extent to which each item sold includes GST. Therefore, it is wise to follow one of the options above to meet this requirement.

Tax invoices for more than $1000

Tax invoices for sales of $1000 or more also need to provide some sort of identification like an ABN. You should also follow the procedure mentioned above.

You should ensure that you comply with the necessary standards. This is a good way to prevent future disputes from arising. Further, a services agreement is also designed to decrease the possibility of future disputes arising.

Recipient created a tax return (RCTI)

In most case tax invoices are created by a supplier. Although in some circumstances, a purchaser can issue a tax invoice for their purchases.

An RCTI must contain information that meets the requirements of the invoice and show that the document has an intent to be an RCTI. It should also show that it is payable by the supplier if the GST is payable. If the requirements are no longer met you should stop issuing an RCTI.

Need further assistance?

There is a list of voluntary standards that will help you in constructing the layout of the tex invoice. There are also a number of requirements to ensure that your tax invoice is valid. If you are worried about whether you are following the right procedure, contact a taxation lawyer near you.

Author
Shrishti Shah

Shrishti is in her third year of a Bachelor of Laws. She is a Legal Intern for Lawpath. She is interested in Intellectual Property Law, Environmental Law, and also Consumer and Competition Law.