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Chapter 3

Calculating GST and issuing tax invoices

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Small business guides > Quick guide to GST and BAS > Calculating GST and issuing tax invoices

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 to customers.

Let’s take a look at the maths and requirements of both.

How to add GST to prices

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

How to calculate 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.

How to issue a tax invoice

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’.

Chapter 4: Claiming GST (and input tax credits)

Find out about the GST you can claim back from the ATO on business expenses and on GST you’ve already paid.

Read next chapter

This guide is intended as general information only. Always check with a professional for advice.

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