An invoice, which may also be referred to as a ‘bill’, is a list of goods and / or services provided along with the financial amount due to be paid.
Some businesses find that they need to issue invoices regularly as part of their normal business activities, while for others, issuing an invoice may be rare. If you need help in creating an invoice you can contact your accountant or financial professional for assistance. Below are some templates that you can use to create a basic or tax invoice.
A basic invoice can be used if you are not registered for GST or if you are an individual. If you are an individual (not a business) you may be required to complete a ‘Statement by a supplier not quoting an ABN’. Refer to the Australian Tax Office (ATO) website for more information https://www.ato.gov.au/forms/statement-by-a-supplier-not-quoting-an-abn/
Where you are claiming GST you must ensure you provide a valid tax invoice. You must be registered for GST with the ATO to claim GST. Refer to the ATO website for more information https://www.ato.gov.au/Business/GST/Claiming-GST-credits/
Grants may attract GST. For grant payments where GST is applicable the amount is increased to compensate for the amount of GST payable. A valid tax invoice must be provided by the successful grant applicants to receive the grant amount plus the applicable GST.
It is important to note that the receipt of grant funding may be treated as income by the ATO. While grants are typically treated as assessable income for taxation purposes, how they are treated will depend on the recipient's particular circumstances. It is strongly recommended that potential applicants seek independent advice about the possible tax implications for receiving a grant from a tax advisor, financial advisor and/or the ATO, prior to submitting an application.