As a bookkeeper, I often get asked by my bookkeeping clients if I can explain the difference between an invoice and a tax invoice as follows:
An invoice is a document that is used to request payment for goods or services provided by a business to a customer. It usually contains details such as the date of the transaction, the name and address of the customer, a description of the goods or services provided, and the total amount due.
A tax invoice, on the other hand, is a specific type of invoice that is used for transactions that are subject to Goods and Services Tax (GST) in Australia. It contains all the same details as a regular invoice, but also includes additional information that is required by the Australian Taxation Office (ATO) to claim GST credits.
The additional information that must be included on a tax invoice includes The words "tax invoice" must be clearly displayed The name and Australian Business Number (ABN) of the supplier The date the tax invoice was issued A description of the goods or services provided The total amount payable, including GST The amount of GST payable It is important to note that if a business provides a tax invoice to a customer for a taxable sale, the customer is required to pay the GST included in the price. On the other hand, if a business provides an invoice that is not a tax invoice, GST is not included in the price and the customer is not required to pay it.
For more information please contact Caboolture Bookkeeping on 1300 022 422