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Chapter 3

Calculating GST and issuing tax invoices

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Small business guides > Quick guide to GST > 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

Once you’re GST registered, you’ll need to put prices up by 7%. There’s a very simple formula for doing that:

How to calculate GST

What are tax invoices?

A tax invoice tells a customer how much GST they paid on a purchase. You must issue a tax invoice when you sell to GST-registered customers.

Tax invoice example

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

How to issue a tax invoice

A simplified tax invoice can also be used for invoice amounts less than $1000 inclusive of GST. You can get more information on invoicing customers here.

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

Find out about the GST you can claim back on business expenses.

Read next chapter

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

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