What do I need to include on my invoices?
Quite often we see client invoices which aren’t quite right. They’re beautifully designed, artistic, and pretty close to works of art however they don’t contain the information that makes them a valid tax invoice.
The following is a summary of everything you need to include as per the ATO. They have great information, and it’s free!
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When you make a taxable sale of more than $82.50 (including GST), your GST registered customers need a tax invoice from you to be able to claim a credit for the GST in the purchase price.
If a customer asks you for a tax invoice, you must provide one within 28 days of their request.
Tax invoices for taxable sales of less than $1,000 must include enough information to clearly determine the following seven details:
that the document is intended to be a tax invoice
the seller's identity
the seller's Australian business number (ABN)
the date the invoice was issued
a brief description of the items sold, including the quantity (if applicable) and the price
the GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, as a statement such as 'Total price includes GST'
the extent to which each sale on the invoice is a taxable sale (that is, the extent to which each sale includes GST)
TIP - you cannot charge GST if you are not registered for GST
In addition, tax invoices for sales of $1,000 or more need to show:
the buyer's identity or ABN
If your tax invoices meet the requirements for sales of $1,000 or more, you can also use them for sales of lesser amounts.
You must register for GST when your turnover hits $75K in a rolling period. That means your sales for the current month and the previous 11 months or the month you’re in and the projected next 11 months. If you’re a not for profit entity then $150K is when you register for GST.
For more information go to https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/
If you’re using software such as Xero, this is super easy to set up and use, we love it. You can set up your templates, auto reminders, and see when clients view your invoices.