Whether you're a seller or a buyer, having a record for your transaction is essential. These records are usually known as a tax invoice. If you are the recipient of goods or a service, having a tax invoice is essential for providing evidence of your purchase, such as for taxation purposes. Tax invoices also allow you to track your purchases for budgeting.

For businesses, using a tax invoice means that there is always a ‘paper trail’ or documentary evidence of the purchases made by customers. You may require this as evidence of purchase if there is any dispute between yourself and the customer.

A tax invoice will detail the price, products or services, and quantity involved in your transaction.

Why should I track my purchases?

As a customer, it’s understandable that you will want to know what you’re spending and easily access the record of purchase if you need to. Having a tax invoice will help you keep track of your spending but also may be required if you dispute terms of the purchase or wisht to exchange or refund the goods.

Why should I track customer purchases?

It is legally required that a Tax Invoice be issued if a purchase exceeds $82.50 (excluding GST, a customer requests one or if the purchase is taxable. Beyond this, issuing a tax invoice legitimises your transactions as a business and will serve as useful evidence of the purchases made by customers.

Use this Tax Invoice if:

• Your business is registered for GST;
• You want to have a record of purchases made by customers;
• You want to be transparent;
• You want to formalise purchases;
• You want to keep track of spending;

What does the Tax Invoice cover?

• Statement that it is a tax invoice;
• The identity of the seller;
• The Australian business number (ABN) of the Seller;
• The date the invoice was issued;
• A brief description of the items sold, including the quantity (if applicable) and the price;
• The GST amount.

Other documents you may need:

• Service Level Agreement
• Sub-Contractor Agreement
• Privacy Policy
• Letter to Commissioner of Taxation

Further information

• 5 Reasons Why Having Accurate Business Activity Statements (BAS) Is So Important
• Tax Benefits of Registering A Business
• What tax can I expect to pay if I’m self-employed?
• Payroll Tax: 3 Exemptions You May Not Be Aware Of