{"id":306846,"date":"2026-07-16T16:21:56","date_gmt":"2026-07-16T04:21:56","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?post_type=sbh&p=306846"},"modified":"2026-07-17T11:48:37","modified_gmt":"2026-07-16T23:48:37","slug":"tax-invoice-vs-invoice","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/au\/small-business-resources\/invoicing\/tax-invoice-vs-invoice\/","title":{"rendered":"Tax invoice vs invoice"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

For businesses, it’s important to know the difference between a tax invoice and a non-tax invoice. The difference mostly comes down to GST<\/a>. A tax invoice is issued by a business registered for GST to charge the goods and services tax and let the customer claim GST credits. A regular invoice is used when GST does not apply.<\/p>\n

Let’s take a look at why this matters when sending invoices to customers.<\/p>\n

What is a tax invoice?<\/h2>\n

A tax invoice is a legal document used to claim goods and services tax (GST) credits. It\u2019s primary evidence of a taxable sale and is required for your GST reporting.<\/p>\n

Only GST registered businesses can issue tax invoices. A standard tax invoice should always include details like the seller\u2019s ABN and the GST amount. Without either, the customer can\u2019t claim a tax credit.<\/p>\n

What is a regular invoice?<\/h2>\n

This is a payment request document used when no GST is charged. Businesses not registered for GST issue regular invoices for the goods or services they sell.<\/p>\n

Regular invoices have no strict legal requirements. They include the business name, invoice date, a brief description of the services sold, and the total amount payable. They can\u2019t be used to claim GST credits.<\/p>\n

What is the difference between a tax invoice and a regular invoice?<\/h2>\n

A tax invoice is needed when a business registered for GST charges GST. A regular invoice is used when no GST is charged on the sale.<\/p>\n

[\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/07\/Tax-invoice-vs-invoice-difference.png” alt=”Tax invoice charges GST, regular invoice doesn’t” title_text=”Tax Invoice Vs Invoice Difference” align=”center” _builder_version=”4.27.7″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

The tax invoice must comply with ATO requirements, including the words “tax invoice” and the GST amount. A regular invoice has no specific legal requirements. Using the right invoice type will help ensure accurate tracking of GST collected and GST paid \u2014 both of which are necessary when preparing your BAS.<\/p>\n

When must you issue a tax invoice?<\/h2>\n

If your business is registered for GST, you have to issue a tax invoice for any taxable sale over $82.50 (including GST) when a customer requests one. Once a request is received, you have 28 days to provide it.<\/p>\n

If the sale is less than that amount, a full tax invoice isn\u2019t legally required. But remember that for sales over $82.50, failing to provide a valid tax invoice within 28 days can delay the customer\u2019s Business Activity Statement<\/a>.<\/p>\n

This is sometimes called the individual taxable sale rule. Lots of businesses issue tax invoices for every taxable sale just to keep their invoicing and record-keeping consistent.<\/p>\n

What are the tax invoice requirements?<\/h2>\n

A valid tax invoice in Australia must show seven pieces of tax information. The ATO sets these tax invoice requirements<\/a> as:<\/p>\n