How to make a tax invoice, in short: set up your business details and numbering once, then for each sale put "Tax Invoice" at the top, add the buyer, list what you sold, show the GST, total it, add how to pay and send it as a PDF. This guide walks through that build for a GST-registered business, with a worked $3,256 example. The fastest route is a tax invoice generator that already has every field in place; the steps below work in any tool.
This is the build-it-now walkthrough. For the ATO's list of required details and nothing else, see tax invoice requirements in Australia.
Tax invoice or invoice: which do I make?
Make a tax invoice if you're registered for GST and the sale includes taxable items. If you're not registered, make a plain invoice headed "Invoice", with no GST and without the words "tax invoice". The ATO says unregistered businesses should not include the words "tax invoice".
| Your situation | Make this | Extra rule |
|---|---|---|
| Not registered for GST | "Invoice", no GST line | Include your ABN; never write "tax invoice" |
| Registered, taxable sale under $1,000 | "Tax Invoice" with GST | Buyer details optional |
| Registered, taxable sale of $1,000 or more | "Tax Invoice" with GST | Buyer's identity or ABN required |
| Registered, mix of taxable and GST-free items | "Tax Invoice" | Mark which items are taxable; GST only on those |
| Registered, customer asks for one after the sale | "Tax Invoice" | Provide within 28 days, unless the sale was $82.50 (incl. GST) or less |
The 28-day and $82.50 rule comes from the ATO's tax invoices page. In practice, most GST-registered businesses send a tax invoice with every sale so the question never comes up. Not sure whether GST applies to you at all? Start with do I add GST to my invoice?
What do I set up once before my first tax invoice?
Five things: your business name, ABN, contact details, payment details and an invoice numbering scheme. Get them right once and every tax invoice after that is just the buyer, the items and the date.
- Business name and ABN. Use the legal or registered business name that matches your ABN record. The ABN is 11 digits; most people write it in the 12 345 678 901 pattern.
- Contact details. Address, email and phone, so the buyer knows who to ask about the invoice.
- Payment details. BSB and account number, PayID, or both. Our guide to bank details on an invoice covers what to show and how to avoid payment-redirection scams.
- Numbering. Pick a format such as INV-0001 and never reuse a number. See how to number invoices for formats that stay tidy.
- Default terms. Decide your standard due date (7, 14 or 30 days) and write it the same way every time. Shorter terms get you paid faster; just be consistent.
The generator saves your business details and ABN in your browser, so you set this up once and the next invoice starts pre-filled.
How do I make a tax invoice, step by step?
Work from the top of the page down: heading and your details, invoice number and dates, buyer, line items, GST and total, then payment details. Each step below says what to enter and the mistake to avoid.
1. Heading: "Tax Invoice"
Write "Tax Invoice" at the top. The ATO's first required detail is that the document is clearly intended to be a tax invoice, and the heading is the plainest way to show it. Below it, your business name and ABN.
2. Invoice number, date issued and due date
Add the next number in your sequence, the date you issue it, and the due date. The issue date is required on a tax invoice; the due date is what gets you paid on time. "Due 14 days from invoice date" is vaguer than "Due 30 October 2026".
3. Buyer details and the $1,000 rule
For a sale of $1,000 or more, the tax invoice must also show the buyer's identity or ABN. Below that it's optional. A practical rule: if the job is anywhere near $1,000, or the buyer is a business that will claim the GST, add their business name and ABN anyway. It costs nothing and they'll often ask for it.
4. Line items: description, quantity, price
Describe what you supplied clearly enough that the buyer can match it to the job: "Copywriting, 4 hours at $95" beats "Services". Add quantity and price for each line. If any item is GST-free, mark it on the line, because the ATO requires the tax invoice to show the extent to which each sale is taxable.
5. GST: a separate line or "Total price includes GST"
Show the GST as its own line under the subtotal. If every item is taxable and the GST is exactly one-eleventh of the total, you can instead write "Total price includes GST". On a mixed invoice, show the GST figure. GST is 10% of the taxable subtotal, or one-eleventh of a GST-inclusive total; how to calculate GST has the formulas and rounding rules, and the GST calculator checks a single figure.
6. Total
Subtotal plus GST equals the total, and the total is the number the buyer pays. If you took a deposit, show it and the balance due on separate lines so the total still adds up.
7. Payment details
Repeat the due date next to your BSB, account number and PayID, and ask the buyer to use the invoice number as the payment reference. That one line saves most "which invoice was this for?" emails.
8. Send it as a PDF
Export to PDF so the layout and figures can't shift, name the file with the invoice number ("INV-0042 Harbour Lane Cafe.pdf"), and email it. A PDF also prints cleanly for buyers who still pay from paper.
9. Keep the record
Save a copy of every tax invoice you issue. The ATO's general retention period for business records is 5 years, and you'll need the GST figures for your BAS. A folder per financial year, with files named by invoice number, is enough.
Steps 7 to 9 are where invoices get lost: sent but not chased, paid but not recorded. InvoiceSonic (from the same team) has PDF and client-link sharing and reusable clients on its free plan. Pro (A$19/month) adds open tracking, automatic reminders at 7, 14 and 30 days, and an emailed receipt when you mark an invoice paid.
Worked example: a tax invoice over $1,000
A GST-registered Brisbane web designer bills a café for a new website. Prices are quoted GST-exclusive, every item is taxable, and the total is over $1,000, so the buyer's name and ABN go on the invoice.
| Field | What goes on the invoice |
|---|---|
| Heading | Tax Invoice |
| Seller | Business name, ABN, email, phone |
| Number and dates | INV-0042 · issued 16 October 2026 · due 30 October 2026 |
| Buyer | Harbour Lane Café Pty Ltd and its ABN (required: sale is $1,000 or more) |
| Line 1 | Website design and build, 5 pages · 1 × $2,400.00 = $2,400.00 |
| Line 2 | Domain and hosting setup · 1 × $180.00 = $180.00 |
| Line 3 | Copywriting · 4 hours × $95.00 = $380.00 |
| Subtotal | $2,960.00 |
| GST (10%) | $296.00 |
| Total | $3,256.00 |
| Payment | BSB and account number or PayID · reference INV-0042 |
Check the maths: $2,400 + $180 + $380 = $2,960. GST is $2,960 × 10% = $296.00, and $2,960 + $296 = $3,256. If the designer had quoted $3,256 including GST, the invoice could show the same lines at GST-inclusive prices with "Total price includes GST", and the GST would still be $3,256 ÷ 11 = $296.00.
To build exactly this in under five minutes, open the free Australian tax invoice generator, enter the three lines, and leave "Prices include GST" unticked. It shows the $296.00 GST and flags the buyer field once the total passes $1,000. If you'd rather start from a fixed layout to fill in, the tax invoice template has the same fields.
Common mistakes when making a tax invoice
- "Tax Invoice" when you're not registered. Only GST-registered businesses issue tax invoices. If you're not, see how to invoice with an ABN.
- No buyer details on a $1,000+ sale. The most commonly missed field. Add the buyer's name or ABN.
- GST on GST-free lines. Mark GST-free items and calculate GST on the taxable subtotal only.
- Taking 10% of a GST-inclusive total. $3,256 includes $296 of GST, not $325.60. Divide by 11.
- Reusing or skipping invoice numbers. Each invoice gets a unique number, in sequence.
- Sending an editable file. Send a PDF, and keep your own copy for 5 years.
The short version
Set up your name, ABN, payment details and numbering once. Then for each sale: "Tax Invoice", number and dates, buyer (required from $1,000), line items, GST line or "Total price includes GST", total, payment details, PDF, keep a copy. The Australian generator handles all of it free, with no signup and no watermark.
If you're making more than a few tax invoices a month, InvoiceSonic keeps every invoice, client and GST figure in one place for free. Pro (A$19/month, 7-day trial) adds recurring invoices and reminders, so you stop chasing payments by hand.
This article is general information, not tax advice. For your circumstances, check the ATO's tax invoices page or a registered tax agent.
Frequently asked questions
How do I make a tax invoice?
Head the document 'Tax Invoice', add your business name and ABN, an invoice number, the date issued, the buyer's details, each item with quantity and price, the GST (as a line or 'Total price includes GST') and the total. Add payment details, send it as a PDF and keep a copy.
Can I make a tax invoice if I'm not registered for GST?
No. If you're not registered for GST, the ATO says your invoices should not include the words 'tax invoice'. Send a plain invoice headed 'Invoice' with your ABN and no GST.
When does a tax invoice need the buyer's ABN?
For sales of $1,000 or more, the tax invoice must show the buyer's identity or ABN. Below $1,000 it's optional, but it's good practice for business buyers who will claim the GST.
Do I have to give a customer a tax invoice?
If a customer asks for a tax invoice, you must provide one within 28 days, unless the sale was $82.50 (including GST) or less.
How do I make a GST invoice with GST-inclusive prices?
Enter each price including GST and either show the GST as one-eleventh of the total or, if every item is taxable, write 'Total price includes GST'. A $3,256 inclusive total contains $296 of GST.
How long do I keep copies of tax invoices?
The ATO's general retention period for business records is 5 years. Keep a PDF of every tax invoice you issue, filed by invoice number.
Make your tax invoice now
"Tax Invoice" heading, ABN field, 10% GST and the $1,000 buyer prompt built in. Free, no signup.
Open the tax invoice generator