We often see invoices that do not comply with GST rules. The bad news is, if you do not receive a correct tax invoice you are not allowed to claim the GST.
If the invoice is incorrect you need to go back to the supplier so they can alter the original invoice to include the missing information. Be extra cautious to get the supplier to initial the changes. A supplier must issue a proper invoice if requested.
So what does an invoice need on it?
For purchases under $50 you do not need to keep a tax invoice, but it is good practice to. An invoice needs a minimum the of date, description, cost and supplier is good information to have.
For purchases of goods or services over $50 up to $1,000 the tax invoice (at a minimum) must include:
- the words "Tax invoice"
- the suppliers name and GST registration number
- the date issued
- a description of the goods and/or services supplied
- the total amount payable, and
- a statement that GST is included
For purchases of goods or services over $1,000 you need to ensure it has all the above information plus:
- the purchaser's name and address
- the quantity or volume of the goods or services supplied e.g. litres, hours
- either a statement that GST is included in the final price or the amount excluding GST and the GST amount payable.