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Tax Invoice

A Tax Invoice is an official document issued for taxable sales that include GST. Lenders use tax invoices to verify business expenses, equipment purchases, vehicle acquisitions, and revenue when assessing Business Loans and Working Capital Loans. Related terms: GST, GST Turnover, Accounts Payable, Accounts Receivable. Helpful hubs: Business Owners Finance Hub.

Why Tax Invoices Matter

Tax invoices provide proof of purchase, verify GST obligations, and confirm the legitimacy of expenses. Lenders depend on them to validate cashflow, asset purchases, and compliance during finance assessments.

  • Required by law when charging GST
  • Proves ownership of assets being financed
  • Used by lenders to verify business expenses
  • Ensures accuracy in BAS and tax reporting
  • Helps prevent fraud and incorrect claims

What a Tax Invoice Must Include

  • Supplier’s name and ABN
  • Date of issue
  • Description of goods or services
  • GST amount (or statement that GST is included)
  • Total amount payable
  • Buyer’s details (for invoices over $1,000)

Finance applications are strengthened when reconciled records match tax invoices issued and received.

Official reference: ato.gov.au

Do all invoices need to be tax invoices?
Only invoices for taxable sales that include GST must be issued as tax invoices.
Do lenders check tax invoices?
Yes — lenders review tax invoices to validate asset purchases and confirm business expenses.
Is a receipt the same as a tax invoice?
No. A tax invoice details GST and is used for BAS reporting, while a receipt simply confirms payment.
Can a business claim GST without a tax invoice?
No — a valid tax invoice is required to claim GST credits over $82.50.
Are digital tax invoices acceptable?
Yes — digital tax invoices are legally valid and are widely used in finance applications.