Key facts
- No tax invoice needed
- $82.50 or less, including GST
- Buyer’s identity or ABN required
- Sales of $1,000 or more
- Supplier must provide one on request
- Within 28 days
- New Zealand equivalent
- Taxable supply information (since 1 April 2023)
What must a tax invoice show for a sale under $1,000?
The ATO lists seven details for a taxable sale of less than $1,000.
- 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. It can be shown separately or, if it 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 taxable.
Source: ATO: Tax invoices
What changes at $1,000 or more?
A tax invoice for a sale of $1,000 or more must also show the buyer’s identity or ABN. An invoice that meets the $1,000-or-more requirements can be used for smaller sales too.
If one invoice covers more than one buyer, each buyer’s identity or ABN must be shown.
Source: ATO: Tax invoices
The $82.50 and 28-day rules
You don’t need a tax invoice to claim a GST credit on a purchase of $82.50 or less including GST. Above that, hold the tax invoice before you claim. A supplier must give you a tax invoice within 28 days of your request, unless the sale is $82.50 or less.
| Purchase value (GST-inclusive) | Tax invoice needed to claim the GST credit? | Buyer’s identity or ABN on the invoice? |
|---|---|---|
| $82.50 or less | No | No |
| More than $82.50, under $1,000 | Yes | No |
| $1,000 or more | Yes | Yes |
Summary of the ATO’s tax invoices guidance. Check the ATO page for special cases.
Source: ATO: Tax invoices
Recipient-created tax invoices (RCTIs)
An RCTI is a tax invoice the buyer issues instead of the seller. The ATO allows it only where both parties are registered for GST, they have a written agreement that is current when the RCTI is issued, and the ATO has determined that the supply can be invoiced this way.
- The RCTI must show both parties’ ABNs and make clear it is intended to be a recipient-created tax invoice.
- If GST applies, it must state that the supplier is liable for the GST.
- It must be issued within 28 days of the sale or of the date the sale value is determined, and the buyer keeps the original or a copy.
- While the agreement applies, the supplier must not issue its own tax invoices for those supplies.
Source: ATO: Tax invoices
What AP should check before claiming the GST credit
- The invoice is labelled as a tax invoice (or is a valid RCTI under an agreement you hold).
- The supplier’s name and ABN are on it. If there is no ABN, check whether you must withhold before paying (see no-ABN withholding).
- The GST amount, or the “Total price includes GST” statement, is there and adds up.
- For $1,000 or more, your business name or ABN is on it.
- The description, quantity and price match what you ordered and received.
- If anything is missing, ask the supplier for a corrected tax invoice. They must provide one within 28 days of your request.
Sources: ATO: Tax invoices, ATO: Withholding if ABN is not provided
If you’re in New Zealand: taxable supply information
New Zealand replaced the tax invoice requirement with “taxable supply information” from 1 April 2023. What it must show depends on the value of the supply, and the seller must provide it to a GST-registered buyer within 28 days of a request for supplies over $200.
| Supply value | Seller details | Buyer details | Payment information |
|---|---|---|---|
| $200 or less | Name or trade name | Not required | The consideration for the supply |
| More than $200, up to $1,000 | Name or trade name, and GST number | Not required | GST-exclusive amount, GST amount and GST-inclusive amount; or the GST-inclusive amount with a statement that GST is included |
| More than $1,000 | Name or trade name, and GST number | If the buyer is GST-registered: name plus one or more identifiers (address, phone, email, trading name, NZBN or website) | As for $200 to $1,000 |
Every band also needs the date of the invoice (or the time of supply if no invoice is issued) and a description of the goods or services. IRD lists separate rules for imported and second-hand goods.
IRD says invoices, bank statements, supplier agreements and contracts can be used on their own or together to support the figures in your GST return. Sellers can also provide taxable supply information through a direct exchange between buyer and seller software, for example Peppol e-invoicing.
Buyer-created taxable supply information (New Zealand’s equivalent of an RCTI) no longer needs IRD approval. Both parties must be GST-registered and agree that only the buyer will provide it, and it must show both GST numbers. Arrangements approved before 1 April 2023 can continue.
Sources: Inland Revenue: Taxable supply information for GST, Inland Revenue: How taxable supply information for GST works, Inland Revenue: Buyer-created taxable supply information
Where Aequo AP fits
Aequo AP is accounts payable automation for SMB and mid-market finance teams, with integrations for the major accounting systems and ERPs. Its Xero integration is live: approved invoices are created as bills in Xero, which stays your system of record.
Aequo AP reads the tax amount on each invoice line, includes it in the invoice total, and compares it with the tax on the matching purchase order line during two-way and three-way matching, alongside price and quantity differences.
Aequo AP does not decide whether a document is a valid tax invoice. Your team still checks the ABN, the tax invoice label and, for $1,000 or more, your own details, and Aequo does not set the GST tax rate on bills it writes to Xero, so check the tax rate on each bill line in Xero.
Aequo AP does not:
- Read or validate the supplier’s ABN or NZ GST number
- Withhold PAYG amounts for suppliers who don’t quote an ABN
- Prepare or lodge BAS or GST returns
Frequently asked questions
What are the ATO requirements for a tax invoice?
For a sale under $1,000: that it is a tax invoice, the seller’s identity and ABN, the issue date, a brief description with quantity and price, the GST amount (or “Total price includes GST”), and the extent to which each item is taxable. From $1,000 it must also show the buyer’s identity or ABN.
Do I need a tax invoice for purchases under $82.50?
No. You can claim the GST credit on a purchase of $82.50 or less (including GST) without a tax invoice. Above $82.50 you need the tax invoice before you claim.
What extra details are needed on a tax invoice over $1,000?
The buyer’s identity or ABN. If one invoice covers several buyers, each buyer’s identity or ABN must be shown.
How long does a supplier have to give me a tax invoice?
In Australia, 28 days from your request, unless the sale was $82.50 or less including GST. In New Zealand, 28 days from a request for supplies over $200, or a later date you both agree.
Is an invoice without an ABN a valid tax invoice?
No. The seller’s ABN is one of the required details. If a supplier doesn’t quote an ABN at all, you may also have to withhold 47% from the payment; see the no-ABN withholding guide.
What is a recipient-created tax invoice?
A tax invoice issued by the buyer instead of the seller. It needs both parties to be GST-registered, a current written agreement, and an ATO determination covering the supply. It must show both ABNs and be issued within 28 days.
What are the tax invoice requirements in New Zealand?
Since 1 April 2023 New Zealand uses taxable supply information. Up to $200 you need the seller’s name, date, description and price; over $200 add the seller’s GST number and the GST amounts or a GST-inclusive statement; over $1,000 add the buyer’s name and an identifier if the buyer is GST-registered.
Does Aequo AP lodge my BAS?
No. Aequo AP captures, matches and routes supplier invoices for approval and creates the approved bills in Xero. BAS and GST returns are prepared and lodged from your accounting system or by your accountant.
Check supplier invoices before they become bills
Aequo AP captures supplier invoices, matches them to purchase orders and receipts, routes approvals and flags exceptions and duplicates, then creates the approved bill in your accounting system.
Related guides
Official sources
- ATO: Tax invoices — Requirements for sales under $1,000 and $1,000 or more, the $82.50 rule, the 28-day rule and RCTIs. Checked 24 October 2026.
- ATO: Withholding if ABN is not provided — Checked 24 October 2026.
- Inland Revenue: Taxable supply information for GST — States that new laws replaced the tax invoice requirement from 1 April 2023. Last updated by IRD 27 November 2024; checked 24 October 2026.
- Inland Revenue: How taxable supply information for GST works — Requirements by value band and the 28-day rule. Last updated by IRD 31 March 2026; checked 24 October 2026.
- Inland Revenue: Buyer-created taxable supply information — Last updated by IRD 27 November 2024; checked 24 October 2026.