Chapter 3

Calculating GST and issuing tax invoices

If you’re a GST-registered business you must add GST to your prices. You also need to issue GST invoices. Find out how.

A calculator on top of some GST documents

How to add GST to prices

You need to put your prices up by 10%. There’s a very simple formula for doing that.

A calculator displaying the equation for working out GST

You can find useful GST calculators on the web; just search for ‘AU GST calculator’. Don’t do this to GST-free products or services that you sell. You can check GST-free items on this ATO page.

What are tax invoices?

A tax invoice tells a customer how much GST they paid on a purchase. It’s important information because some of your customers may be able to claim that tax back. If you’re GST registered, you must issue a GST invoice on request.

Tax invoice example

Here’s what you need to put on a tax invoice.

A tax invoice example

Receipts versus tax invoices

A receipt printed at point of sale is called a tax invoice if it has all of this information on it. But it must contain the words ‘tax invoice’.

Disclaimer: Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.

Guide to GST & BAS

Making a start with GST and BAS? Don’t worry. It’s a little extra admin, but follow our guide to get on top of it.

Download the guide to GST

Get your small business tax sorted. Fill in your details to get our full GST guide as a PDF.

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