Tax Invoice
A tax invoice is a legal document that offers a look at what the
GST is for a transaction. Read on to learn about your
obligations for issuing, holding, and supplying the different
types of tax invoices.
You can easily learn what the general requirements are for
keeping tax invoices and what you can do if you receive a tax
invoice too late to claim a GST credit, as well as what the
requirements are for issuing tax invoices that are specific to
the value of the supplies, and how you can issue duplicate tax
invoices.
It is generally true that in order to claim a GST credit for a
supply of more than $50, including GST, you must hold a tax
invoice.
When you supply goods and/or services to another person who is
registered, you must be able to provide a tax invoice within 28
days when the purchaser asks you for one. You could be charged
with penalties if you do not supply the purchaser with a tax
invoice after such a request is made.
For claims on supplies that are worth $50 or more, you must hold
a tax invoice in order to claim a credit. You cannot claim your
credit if you do not hold a tax invoice.
This means that you cannot claim a credit for a purchase when
your return is due if you do not hold a tax invoice. If this
should happen, there is something you can do. You can claim a
credit for the purchase in a later return when you actually do
receive and hold the tax invoice.
For supplies of $50 or less, including GST, a tax invoice is not
needed. It is suggested, however, that you do keep a record of
such things as invoices, vouchers, and/or receipts for these
purchases. Minimally, you should at least keep a record of the
date, description of the supply, the cost, and also the name of
the supplier.
When dealing with supplies with a worth of $1,000 or more,
including GST, the tax invoice must clearly display several
facts. These include the words 'tax invoice' in a prominent
place, the name, or trade name, and GST number of the supplier,
the name and address of the supply's recipient, the date it was
issued, a description of the goods and/or services that was
supplied, and also the quantity, or volume, of the goods and/or
services that was supplied.
The tax invoice must also include the amount, excluding tax,
that was charged for the supply, the GST content, and also the
total amount that was payable for the supply. If you don't have
this information, it must include a statement that the GST, if
it has been, is included in the final price.
If the tax invoice covers multiple supplies that add up to a
total over $1,000, then all the details listed above are
required.
For supplies that are valued between $50 and $1,000, including
GST, a simplified tax invoice is acceptable.
This type of tax invoice must clearly show the words 'tax
invoice' in a prominent place, the name and GST number of the
supplier, the date that it was issue, as description of the
goods and/or services that were supplied, and the total amount
that is payable for the supply, as well as a statement that the
GST is included.
A tax invoiced is not required for supplies that total $50 or
less, including GST.
There cannot be duplicate tax invoices. A registered person is
only allowed to issue one original tax invoice for each taxable
supply. However, if a purchaser loses an invoice, then the
supplier may issue a copy that must clearly be marked 'copy
only' right on it.