When do I owe a buyer a receipt or a tax invoice?

Three figures

1. $75 or more, excluding GSTa proof of transaction, as soon as practicable after the goods or services are supplied (s 100, Australian Consumer Law).
2. over $82.50, including GSTa tax invoice, if you're registered for GST and the customer asks, within 28 days (ATO).
3. $1,000 or morethe buyer's identity or ABN also goes on the tax invoice (ATO).

The first figure is the Act's. s 100 of the Australian Consumer Law: if a person in trade or commerce supplies goods or services to a consumer and the total price, excluding GST, is $75 or more, the supplier must give the consumer a proof of transaction as soon as practicable after the goods or services are supplied. If the total price is less than $75, the consumer may request a proof of transaction instead. Where a request is made, the supplier must give the proof of transaction within 7 days after the request is made. And the Act asks that the proof given be transparent.

Proof of transaction

What the proof has to be, in the Act's words: a document that identifies the supplier of the goods or services; if the supplier has an ABN, states the supplier's ABN; if the supplier does not have an ABN but has an ACN, states the supplier's ACN; states the date of the supply; states the goods or services supplied to the consumer; and states the price of the goods or services.

The Act's note lists what can serve as one: a tax invoice within the meaning of the GST Act; a cash register receipt; a credit card or debit card statement; a handwritten receipt; a lay by agreement; or a confirmation or receipt number provided for a telephone or internet transaction. For the online seller, the last item is the everyday one: the confirmation number the checkout sends.

Where two sources differ

The two sources state the boundary slightly differently. The ACCC says businesses must give consumers a receipt for anything that costs over $75, and that for anything under $75 the consumer can ask for a receipt and the business must provide it within 7 days. The Act itself sets the duty at $75 or more, excluding GST, so a sale of exactly $75 excluding GST is already inside it. This guide follows the Act's words, because the Act is the instrument and the ACCC's page is its summary.

Tax invoices on request

A step above the receipt sits the tax invoice. The GST Act's rule: the supplier of a taxable supply must, within 28 days after the recipient of the supply requests it, give to the recipient a tax invoice for the supply, unless it is a recipient created tax invoice. The ATO's own version for a store: if a customer asks for a tax invoice, you must provide one within 28 days, unless it is for a sale of $82.50 (including GST) or less. The ATO adds that for taxable sales of less than $1,000 a tax invoice must include enough information to clearly determine the required details.

The buyer's identity or ABN

From the next figure, the invoice has to say who is buying. The ATO: a tax invoice for a sale of $1,000 or more also needs to show the buyer's identity or ABN. The GST Act's own words put the same duty on the document: if the total price of the supply is at least $1,000 or such higher amount as the regulations specify, or if the document was issued by the recipient, it must include the recipient's identity or the recipient's ABN. The ATO notes the practical effect: if your tax invoices meet the requirements for a sale of $1,000 or more, you can also use them for lesser amounts.

Emailed invoices and PDFs

An online sale rarely ends with paper. The ATO: a tax invoice doesn't need to be issued in paper form, and you can issue one to a customer by emailing an invoice in portable document format (PDF) or other digital formats. The condition on the format is the same as the condition on paper: any digital record or document transmitted to the customer needs to contain all the required information to be a valid tax invoice.

And once the store is registered for GST, the invoice itself is regulated: business.gov.au says if you're registered for GST, the invoice you issue to a customer must be a tax invoice, and tax invoices are different to regular invoices. If your GST turnover is under $75,000 and you haven't chosen to register for GST, you don't include GST in your prices, and any invoices you provide need to show that GST was not included.