In Australia, “invoice” and “tax invoice” are not interchangeable. The difference comes down to GST registration. Use the wrong one and you can confuse clients, create recordkeeping issues, or accidentally suggest you are charging GST when you are not allowed to. Here is the simple version.
The difference in one sentence
A regular invoice asks a customer to pay you. A tax invoice does that too, but it also shows GST information so a GST-registered customer can support a GST credit claim.
If you are not registered for GST, you can still send professional invoices. They just should not say “Tax Invoice,” and they should not add GST.
When to use a regular invoice
Use a regular invoice when you are not registered for GST. This is common for newer sole traders, freelancers and small operators below the GST registration threshold.
A regular invoice should still be clear and professional. It should show who you are, who the customer is, what you supplied, what they owe, and when payment is due.
A regular invoice should include
The word “Invoice”
Your business name
Your ABN
Your contact details
A unique invoice number
The issue date
The customer’s name or business name
A description of the work, goods or services
The total amount due
Payment methods and payment terms
When to use a tax invoice
Use a tax invoice when you are registered for GST and you make a taxable sale. According to business.gov.au, GST-registered businesses must provide a tax invoice for taxable sales over $82.50 including GST, and must provide one within 28 days if a customer asks for it.
A tax invoice must include
The words “Tax Invoice”
Your business name
Your ABN
The date of issue
A short description of what was sold, including quantity and price
The amount of GST payable, if any
For sales of $1,000 or more, the buyer’s identity or ABN
The $82.50 rule
The $82.50 threshold includes GST. If you are GST-registered and make a taxable sale above that amount, the customer is entitled to a tax invoice. For smaller taxable sales, you may still issue one if asked, and in practice it is often simpler to use the same tax invoice format for all taxable work.
What not to do
Do not write “Tax Invoice” if you are not registered for GST. That wording implies the document supports GST treatment.
Do not add a GST line if you are not registered. You cannot charge and collect GST unless you are registered.
Do not hide GST inside vague totals. If you are registered, make it clear whether the total includes GST and how much GST is payable.
Do not leave out your ABN. Australian business customers expect it, and it keeps the payment trail cleaner.
Example wording
If you are not registered for GST
Invoice total: $880.00. No GST has been charged.
If you are registered for GST
Subtotal: $800.00. GST: $80.00. Total including GST: $880.00.
Which one should you use?
Ask one question first: are you registered for GST? If yes, use a tax invoice for taxable sales. If no, use a regular invoice and keep GST off the invoice entirely.
Clervo keeps this simple by giving you a consistent structure for invoice numbers, client details, line items, totals and payment terms, so you are not rebuilding the same document from scratch every time.
This article is for general information only and is not tax or accounting advice. Check the latest ATO guidance or speak with a registered tax professional for your situation.
Last updated: September 2026