How to issue a receipt

Why it matters

A receipt is proof of payment. It protects you and the customer if there is a dispute about whether a bill was paid.

Many customers also need it for their own records. A receipt that is not a tax invoice cannot support a GST credit for a purchase above A$82.50.

The steps

1. Issue it when you get the money. Give the receipt at the time of payment or send it the same day.
2. Show who you are. Include your business name, ABN and contact details.
3. Number and date it. Use a receipt number in sequence and the payment date.
4. Describe what was paid for. List the items or the invoice number that the payment covers.
5. Show the amount and GST. Show the amount paid and how much GST it includes. Say if the amount is part payment.
6. Show how it was paid. Cash, card or bank transfer. Add the last four digits of a card or the transfer reference.
7. Issue a tax invoice if asked. If the sale is above A$82.50 including GST and the customer asks for a tax invoice, give one within 28 days.
8. Keep a copy. Keep a copy with the invoice. The ATO says to keep most business records for 5 years.

Worked example

Example Plumbing Supplies Pty Ltd sells a pipe cutter for A$220.00 including GST. The customer pays by card.

Receipt field	Entry
Receipt number	R-3045
Date	14 October
Item	Pipe cutter
Amount paid	A$220.00
GST included	220 / 11 = A$20.00
Payment method	Card ending 4821

Because the sale is above A$82.50, the customer can ask for a tax invoice. Example Plumbing Supplies must provide it within 28 days.

Common mistakes

• Calling a receipt a tax invoice when it lacks the details.
• Not showing the GST amount.
• Skipping the ABN.
• Not keeping copies.

Next step

Use the Receipt generator first. Then see how to check a tax invoice has what the ATO needs.

Sources

• ATO: tax invoices
• ATO: overview of record-keeping rules