GST & invoices
How GST works on Australian invoices and how this tool handles it.
GST registered vs not registered
You can issue an invoice whether or not you are registered for GST. If you are not GST registered, you do not charge GST. Your invoice is still valid; it just won’t include a GST component. Many sole traders and small businesses under the registration turnover threshold ($90,000 per year) operate this way.
If you are GST registered, you generally must charge GST on taxable supplies. The invoice needs to show the GST amount (or state that the price includes GST) so your customer can claim input tax credits. Our generator lets you choose “GST registered” and then either “Add GST” (prices are ex-GST, we add 10%) or “Prices include GST” (prices are the total, we back out the GST).
Add GST vs prices include GST
Add GST: The amounts you enter are treated as ex-GST. We add 10% GST on taxable lines and show subtotal, GST, and total. Example: $100 ex-GST → $10 GST → $110 total.
Prices include GST: The amounts you enter are the total price the client pays. We calculate the GST component (1/11 of the total for taxable items) and show ex-GST subtotal, GST, and total. Example: $110 total → $10 GST, $100 ex-GST.
Taxable vs non-taxable line items
Most goods and services in Australia are taxable (GST applies). Some are GST-free (e.g. many health, education, basic food) or input-taxed (e.g. residential rent, financial services). In the invoice builder, you can mark individual line items as non-taxable so no GST is calculated for that line. Use this for GST-free or input-taxed supplies.
ABN on invoices
Including your ABN on invoices is good practice. If the total is over $82.50 (or you claim GST), the ABN is required for a valid tax invoice. Our tool validates an 11-digit ABN (digits only, after stripping spaces).
Frequently asked questions
- Do I need to be GST registered to issue an invoice?
- No. You can issue an invoice whether or not you are GST registered. If you are not registered for GST, you simply do not add GST to your invoices. Your invoice should still show your ABN (and the words "Tax invoice" are not required for non-GST invoices; "Invoice" is fine).
- What is the difference between GST registered and not registered?
- If you are GST registered, you must charge GST on taxable supplies (unless they are GST-free or input-taxed). You can claim GST credits on business purchases. If you are not GST registered, you do not charge GST and cannot claim GST credits. Your turnover determines whether registration is required (currently $90,000 per year for businesses, $75,000 for non-profits).
- What does "prices include GST" mean on an invoice?
- It means the amounts you enter are the total price the client pays, and GST is included in that total. The tool will work out the GST component and the ex-GST (subtotal) amount. If "prices include GST" is off, the amounts you enter are treated as ex-GST, and GST is added on top to reach the total.
- When do I use "Tax invoice" vs "Invoice"?
- For GST-registered businesses, a document that includes GST must meet the tax invoice requirements (ABN, GST amount or statement that price includes GST, etc.) if the customer needs to claim GST. We use "Tax invoice" when GST is involved. For non-GST invoices, "Invoice" is sufficient.