Whenever someone makes a purchase of goods or services from your Business, you are required to produce a Tax Invoice within 28 days of being requested. A tax invoice is only required if the supply is over $75 (excluding GST).
For best accounting and recording keeping practises, it is highly recommended you retain or produce these tax documents for all values.
What makes a Legal Tax Invoice:
Issuing Tax Invoices:
When you make a taxable sale of more than $82.50 (including GST), your GST-registered customer requires a tax invoice from you to be able to claim a credit for the GST in the purchase price.
If a customer asks you for a tax invoice, you must provide one within 28 days of their request.
Requirements for Tax Invoices:
Tax invoices for taxable sales of less than $1,000 must include enough information to clearly determine the following seven details:
- that the document is intended to be a tax invoice
- the seller's identity
- the seller's Australian business number (ABN)
- the date the invoice was issued
- a brief description of the items sold, including the quantity (if applicable) and the price
- the GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, as a statement such as 'Total price includes GST'
- the extent to which each sale on the invoice is a taxable sale (that is, the extent to which each sale includes GST)
- If the invoice is over $1,000 it also must include the buyer's identity or ABN
Creating Tax Invoices:
If anyone purchases goods or services from your business, you are required to produce a Tax Invoice. By using Agrimaster you can create very professional invoices and it saves double handling because the transaction will already be in your Agrimaster file when you receive the funds.
Agrimaster can produce two types of Tax Invoices, a Tax Invoice and a Recipient Created Tax Invoice.
- Tax Invoices are used when billing debtors for goods or services purchased from your business. A receipt code should be selected when coding the Tax Invoice.
- Recipient Created Tax Invoices are used to generate invoices when you purchase goods from a creditor (supplier). A Payment code should be selected when coding the Recipient Created Tax Invoice.