Tax Invoices: A Guide for E-Commerce Businesses & Influencers

If you’ve been running a business, getting your operations on the road, and raking in money, then chances are you’ve grown familiar with the concept of tax invoices.


Regardless of the company you run, taxes will always be a part of having a business because of the legalities it enforces in the commerce world today. In the case of Australian online influencers and enterprises, however, dealing with any amount of money owed to the government is notably more difficult. From payroll to regular contributions, the number of factors that must be considered is nearly endless, which is why it’s essential to get familiar with the concept of handling tax.


Even though the idea of taxations can seem dreadful, the truth is that every bit and piece that you’ll run into plays a crucial part in your company’s success. Among all the different tax-related concepts that are essential, yet immensely tiring to deal with, there’s one that many e-commerce businesses and influencers have yet to grasp: tax invoices.


Why your tax invoices matter, and what you need to understand


During the process of filing your tax invoices, businesses are expected to put all the necessary documents together to receive a significant amount in returns of “tax-backs” from the government. Through the help of this mechanism, your business will be able to recover some costs incurred from paying tax, making for a valuable opportunity to increase profit.

All you need to know to ease up the tax invoice process

What most business owners and influencers overlook when it comes to dealing with invoices is that they can ease up the process by getting familiar with all the necessary details. Thankfully, we’ve streamlined the entire learning experience by coming up with this practical guide on everything you need to know when dealing with your tax invoices:


When is it required?


Generally, e-commerce businesses and influencers that are registered for GST must issue a tax invoice for any taxable sale above $82.50 (which includes GST) if a purchaser requires it. On the other hand, you’ll have to hold an invoice for any purchase over the amount mentioned which you’re claiming a GST credit for!

What needs to be included on a tax invoice?

Once you consider the Australian Taxation Office’s (ATO) stringent requirements, it’s essential to note that no detail can be overlooked when it comes to following the GST system. Fortunately, the recent mandates made the requirements far less stringent than they used to be. Here are the following details that you’ll need to include in a form for it to be considered a tax invoice:


  • The correct form (as prescribed in the rules and regulations set forth by the ATO)

  • The supplier’s identity and ABN

  • What has been supplied, including quantity and price

  • The extent to which each item listed is taxable

  • The date the invoice was issued

  • The amount of GST payable concerning each item


If a bill’s total price is $1,000 or higher, however, then the invoice must also contain the recipient’s identity of Australian Business Number (ABN)!


How long must tax invoices be kept?

In terms of legalities, remember that you’ll have to keep and maintain records of all issued or received invoices that you intend to claim until you get to claim them. Once you’ve managed to make a claim, however, you’re still required to keep the records of all your tax invoices for at least five years according to the standards set by the ATO.

Conclusion


As complicated as it may be to deal with the process of drafting, filing, and claiming tax invoices, the truth is that having the right information in mind can help you go a long way. By following this simple yet detailed guide, you’ll be able to fully reap the benefits of being an e-commerce business owner or influencer in Australia in no time! We provide expert e-commerce accounting services in Australia for Shopify stores, bloggers, and SMEs. Get in touch with us today to see how we can help your business succeed!


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