Start with GST registration status
The first check is whether your business is registered for GST. If it is registered, your invoices need to show GST information correctly. If it is not registered, you should not charge GST and should not describe the document as a tax invoice.
This sounds simple, but mistakes often happen when a business changes size, updates templates, or copies an old invoice format from another business. Your invoice template should match your current registration status.
Tax invoice details
The ATO sets out what a tax invoice needs to include. The requirements depend on the value of the sale and whether GST is included. For higher-value invoices, more buyer details may be required.
Typical details include the seller identity, ABN, date, description of what was sold, GST amount or a statement about GST, and enough information to identify the transaction.
Official reference: ATO tax invoices.
Common GST invoice checks
- Use the words "tax invoice" only when appropriate for your GST registration status.
- Show your ABN clearly.
- Make the invoice date and invoice number easy to find.
- Separate taxable, GST-free, or non-taxable items if your accountant has advised you to track them separately.
- Show the total amount payable and the GST component clearly.
- Keep the customer identity and job address accurate, especially for larger jobs.
Why clean GST records help
Clean invoice records make BAS preparation easier because the transaction details are already structured. They also make customer questions easier to answer. If a customer asks for a tax invoice copy, you should be able to find it quickly and send the correct version.
For trades that buy materials for specific jobs, connecting expenses to invoices also makes it easier to review job profitability and explain costs to a bookkeeper or accountant.
Good habits
- Review your invoice template whenever your GST registration status changes.
- Do not edit old invoices silently; issue corrected versions with clear records.
- Keep tax invoices, receipts, and customer records backed up.
- Ask your accountant how they want GST reports exported or summarised.
Correcting invoice mistakes
Mistakes happen: the wrong address, a missing ABN, an incorrect GST treatment, or a line item that should have been split. The important part is to keep a clean audit trail. Do not rely on an edited PDF saved over the old one with no note of what changed.
Use a consistent correction process. Record what changed, when it changed, who requested it, and which version was sent to the customer. If money has already been paid, ask your accountant whether a credit note, adjustment, or corrected tax invoice is appropriate.
Keep GST and non-GST wording clear
Customers may use your invoice for their own records, so clear wording matters. If GST is included, show it clearly. If GST is not charged, avoid wording that implies it was. This is especially important for new businesses using invoice templates copied from old documents.