If you run a pet business in Australia and you're registered for GST, every invoice you send needs to meet the ATO's requirements. Not "most" of them. All of them.
Getting this right protects you and your clients. Getting it wrong can mean penalties, rejected GST credit claims, and awkward conversations with your accountant.
Here is what you need to know.
When Do You Need to Issue a Tax Invoice?
If you're registered for GST, you must provide a tax invoice when:
- A taxable sale is more than $82.50 (including GST)
- A customer asks for one (you have 28 days to provide it)
For sales of $82.50 or less, you don't have to provide one unless the customer asks. But it's good practice to issue one regardless.
What Must a Tax Invoice Include?
The ATO requires seven pieces of information on every tax invoice for sales under $1,000:
- The words "Tax Invoice" - clearly displayed
- Your business name (or trading name)
- Your ABN (Australian Business Number)
- The date the invoice was issued
- A description of the service - including quantity and price (e.g. "Full Groom - Large Dog")
- The GST amount - shown as a separate line item, or as a statement that "Total price includes GST"
- Which items are taxable - if the invoice includes both taxable and non-taxable items
For invoices of $1,000 or more (think multi-week boarding stays or bulk package purchases), you also need the buyer's name or ABN.
GST on the Invoice: Two Valid Formats
You can show GST in two ways. Both are valid under ATO Ruling GSTR 2013/1.
Option 1: Itemised breakdown
| Full Groom - Large Dog | $100.00 |
| GST (10%) | $10.00 |
| Total | $110.00 |
Option 2: Inclusive total with a note
| Full Groom - Large Dog | $110.00 |
| Total price includes GST |
The key requirement is that the GST amount must be clearly ascertainable from the invoice. If the GST is exactly 1/11 of the total, a "Total price includes GST" statement is enough.
Your Prices Must Be GST-Inclusive
This is where many pet businesses trip up.
Under Australian Consumer Law, if you sell to consumers (which pet services businesses do), you must display the total GST-inclusive price as the most prominent figure.
That means:
- Your price list, website, and booking confirmations must show the total including GST
- You can show the GST breakdown alongside it, but the inclusive price must be at least as prominent
- Advertising "$80 + GST" as the headline price when the actual cost is $88 is not compliant
The ACCC enforces this. The rule is straightforward: consumers should know what they are paying before they decide to book.
Source: ACCC Price Displays
Common Invoicing Mistakes
1. Missing ABN
Every tax invoice must show your ABN. Without it, your client cannot claim GST credits, and the document is not a valid tax invoice.
2. No mention of GST
An invoice that just says "$110" with no mention of GST is not a valid tax invoice. You must either show the GST amount or state that the total includes GST.
3. Missing "Tax Invoice" wording
A document labelled "Invoice" or "Receipt" is not a tax invoice. The ATO specifically requires the words "Tax Invoice" to be present.
4. Not issuing invoices when requested
If a client asks for a tax invoice, you have 28 days. This is a legal requirement, not a suggestion. Some clients need tax invoices to claim GST credits on their own BAS (for example, a breeding business paying for grooming services).
5. Forgetting the $1,000 rule
For any invoice of $1,000 or more, you must include the buyer's identity or ABN. Multi-week boarding stays, bulk package purchases, or large course enrolments can easily cross this threshold.
Do You Even Need to Be Registered for GST?
You must register for GST if your annual GST turnover is $75,000 or more. This is based on gross revenue over a rolling 12-month period, not profit.
Most established pet businesses are above this threshold. A grooming salon doing 15 dogs a week at $80 each is already turning over $62,400 a year before add-ons, packages, and retail.
Once you hit the threshold, you have 21 days to register. If you don't register, you still owe the GST you should have collected, plus penalties.
Source: ATO Registering for GST
Electronic Invoices Are Fine
The ATO confirms that electronic invoices meet all the same requirements as paper ones, as long as they contain the required information. Email, PDF, or in-app invoices are all valid.
Quick Reference Checklist
Before sending any invoice, confirm it includes:
- The words "Tax Invoice"
- Your business name
- Your ABN
- The date
- A description of the service (with quantity and price)
- The GST amount (separate line or "includes GST" statement)
- Buyer details (if the total is $1,000 or more)
The Bottom Line
Tax invoices are not optional extras. If you are registered for GST, every invoice you send needs to meet the ATO's requirements. Your prices need to be GST-inclusive for consumers. And if a client asks for a tax invoice, you have 28 days.
The good news is that once your systems are set up correctly, this happens automatically. No manual calculations, no forgetting the ABN, no compliance gaps.