Tax Invoice template

Free Docusign Tax Invoice Template

Use this free tax invoice template Australia to generate professional, GST-compliant invoices and streamline your business administration. As an Australian business registered for GST, you are legally required to provide a tax invoice to a customer upon request for any taxable sale over $82.50 (including GST).

Docusign's australian tax invoice template is fully customisable, ensuring you include all the necessary legal fields for the Australian Taxation Office (ATO). Once you have completed your tax invoice, you can securely send the document to the recipient via a Docusign envelope. The completed and delivered record can then be securely accessed in your Docusign account, and you can still download and print out a hard copy if needed.

Overview

A Tax Invoice is distinct from a regular invoice because it explicitly details the 10% Goods and Services Tax (GST) charged on a sale. Its existence is fundamental to the Australian GST system.

For a GST-registered business in Australia, issuing a proper Tax Invoice is a legal requirement for documenting taxable sales. Critically, it is the key document that allows GST-registered customers to claim GST credits (often called 'input tax credits') for the GST they have paid on their business purchases. Without a valid tax invoice for purchases over $82.50 (including GST), a business generally cannot claim the GST credit, meaning they will be out of pocket for that tax component.

This template helps ensure your invoice contains all the elements required by the ATO for  both sales under $1,000 (GST-inclusive) and sales of $1,000 or more (GST-inclusive).

Who It's For

This tax invoice template is specifically designed for:

• GST-Registered Businesses: Any Australian business, company, or sole trader with a GST turnover of $75,000 or more (or $150,000 for non-profit organisations) that is legally registered for Goods and Services Tax (GST).

• Suppliers of Taxable Goods or Services: For transactions where GST is applicable, especially when the total sale is more than $82.50 (including GST) and the customer is also GST-registered.

• Recipients of Taxable Supplies: The template's compliance ensures that a customer receiving this document can use it to claim their full GST credit from the ATO.

If your business is not registered for GST, you should use a standard 'Invoice' template instead, which must not include the words "Tax Invoice" or any reference to GST.

Purpose of the Agreement

The primary purpose of the Tax Invoice is two-fold: to serve as a formal request for payment and to provide irrefutable evidence of the GST component of a sale. By achieving this, the document acts as:

• A Compliance Instrument: It ensures the seller meets their legal obligation to provide a detailed, GST-compliant document for taxable sales over the required threshold.

• A Tax Claim Key: It is the official document that permits a GST-registered customer to claim a GST credit for the tax component of their purchase.

• An Accurate Record: It creates a traceable paper trail for both the seller's and buyer's records.

Key Clauses and Information

To be a valid Australian Tax Invoice that meets ATO requirements, the document must clearly contain the following information:

• Title: The document must clearly state "Tax Invoice".

• Seller's Identity and ABN: Your business name and your Australian Business Number (ABN) must be clearly displayed.

• Unique Invoice Number and Dates: A unique, sequential Invoice Number and the Invoice Date (date of issue).

• Description of Sale: A brief description, including the quantity and price, of the goods or services sold.

• GST Amounts: The document must show the GST amount payable. This can be a separate line item for each item or a statement like "Total price includes GST" if all items are taxable at the same rate. This template provides a line-by-line breakdown of the GST Amount and the total GST.

• Total Amount: The total price, including GST.

• Buyer's Details (for sales of $1,000 or more): For sales of $1,000 or more (GST-inclusive), the buyer's identity (name) or ABN must be included.

• Payment Details: Comprehensive details on how to pay, including Bank Transfer (with BSB and Account Number), PayID (optional), Credit Card, and BPAY. It is best practice to include clear Payment Due Date and terms.