# How to split an invoice with mixed GST lines

Put each line on its own tax code. Taxable items get GST. GST-free items get a GST-free code. Check the GST total against the invoice before you save.

## Short answer

1. Mark each line on the invoice as taxable, GST-free or input taxed.
2. Enter one bill line per cost.
3. Set the tax code on each line to match.
4. Check the GST total against the invoice.
5. Keep the tax invoice with the bill.

## Before you start

- Have the supplier's tax invoice open. The ATO says a tax invoice that mixes taxable and non-taxable items must clearly show which items are taxable. See the ATO page on [tax invoices](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices).
- Know your accounting software's tax codes. Xero has tax rates such as GST on Expenses and GST Free Expenses. MYOB uses tax codes such as GST and FRE.
- Check if the invoice is tax inclusive or exclusive.

## The manual way in Xero

1. Go to Business > Bills to pay. Open the bill, or choose New bill.
2. Set the amount type at the top to match the invoice.
3. Enter each cost as its own line. Never combine a taxable cost and a GST-free cost on one line.
4. Click the Tax rate cell on each line. Choose GST on Expenses for taxable lines. Choose GST Free Expenses for GST-free lines.
5. Compare the GST total at the bottom with the invoice. They should match.
6. Save the bill.

## The manual way in MYOB

1. Open the bill from the Purchases area. Choose the supplier.
2. Enter each cost as its own line.
3. In the Tax code column, choose GST for taxable lines and FRE for GST-free lines.
4. Compare the GST total with the invoice, then record the bill.

Limits to know:

- Both products let you pick a tax code per line. Neither one checks it against the supplier's invoice.
- Freight is the usual trap. The ATO says domestic transport provided by forwarders and subcontractors who do not arrange the international leg is generally taxable. International transport of goods can be GST-free. See the ATO page on [GST and international freight transport](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/international-transactions/gst-and-international-freight-transport).
- A rounding difference of a few cents between your GST and the invoice is common. Fix it with a rounding line, not by changing a tax code.

## The Pulsify way

1. Forward the invoice to your Pulsify address.
2. Pulsify reads each printed row as its own line. It works out the tax rate per line, including freight and levies, and matches it to a tax code in Xero or MYOB.
3. Where the printed rate has no match, Pulsify uses the supplier's past coding and flags the line. Open the line and choose the right code.
4. Check the GST total in the review screen against the invoice.
5. Approve. Pulsify creates the bill in Xero or MYOB with the tax code on each line.

## Worked example

Example Freight Services sends a $1,270 invoice. Its tax invoice shows which items are taxable.

| Line | Treatment | Tax code | Amount excl. GST | GST |
|---|---|---|---|---|
| Domestic cartage, Sydney to Dubbo | Taxable | GST | $600.00 | $60.00 |
| Fuel levy | Taxable | GST | $100.00 | $10.00 |
| International leg of an export shipment | GST-free | GST-free | $500.00 | $0.00 |

The lines add up to $1,200.00 plus $70.00 GST, which is $1,270.00. That matches the invoice. If your bill total is different, a line is missing or has the wrong code. Find it before you save.

## Common mistakes

- Using one tax code for the whole invoice. Each line needs its own treatment.
- Assuming all freight is GST-free. Domestic freight is generally taxable.
- Entering the GST-inclusive amount on a tax-exclusive bill. GST is then added twice.

## Next step

[Try an invoice](https://app.pulsify.tech/sign-up) and see the tax code on each line of your own bill. For quick sums, use the [GST calculator](/free-tools/gst-calculator/). The [automated line-item coding page](/automated-line-item-coding/) shows how Pulsify codes each line. Our longer post on [mixed GST and split invoices](/blog/automated-line-item-coding-mixed-gst-split-invoices-xero-myob/) covers the background.

## Common questions

### Can I use one tax code for the whole invoice?

Not if the lines have different treatments. A GST-free line coded as taxable overstates your credit. A taxable line coded GST-free understates it. Both show up at BAS time.

### Is freight on a supplier invoice always GST-free?

No. The ATO says domestic transport by a forwarder or subcontractor that does not arrange the international leg is generally taxable. International transport of goods can be GST-free. Check what the supplier charged for.

### What must a tax invoice show when items are mixed?

The ATO says it must clearly show which items are taxable, the total GST payable and the total amount payable. It also cannot say a price includes GST for items that are not taxable.

Source: https://www.pulsify.tech/how-to/split-an-invoice-with-mixed-gst-lines/ (last checked 2026-10-19)