A tax invoice is a document a tax-registered seller gives a buyer that shows the tax charged, which the buyer may need in order to claim it back. Terms and rules differ by country, and the recipient created tax invoice (RCTI) is an Australian concept. To test the numbers on a tax invoice, use the GST invoice checker.

What is a tax invoice?

A tax invoice is an invoice that meets the rules of a tax system such as GST or VAT. It shows the seller, the buyer where required, what was sold and the tax. A business registered for the tax issues it on a taxable sale, and the buyer generally needs it to claim a credit for the tax paid. In Australia, the Australian Taxation Office (ATO) says a buyer needs a tax invoice to claim a GST credit on purchases of more than $82.50 including GST.

Tax invoice vs invoice vs receipt

Document What it is
Invoice A request for payment. It need not show tax.
Tax invoice An invoice that meets the tax rules, issued by a registered seller. Called a VAT invoice in the UK and EU.
Receipt Proof of payment. It can also serve as a tax invoice if it contains everything a tax invoice needs.

The name varies by country: a "tax invoice" under GST in several countries and a "VAT invoice" in the UK and EU. For VAT, see the VAT invoice checker.

What a tax invoice usually shows

In general, a tax invoice shows:

  • A label such as "tax invoice".
  • The seller's name and tax registration number.
  • The date.
  • A description of what was sold, with quantity and price.
  • The tax amount.
  • The buyer's details, for larger sales in some countries.

Requirements vary. For Australia in detail, see tax invoice requirements in Australia.

What is a recipient created tax invoice (RCTI)?

A recipient created tax invoice is a tax invoice that the buyer issues instead of the seller. It is an Australian GST concept. According to the ATO:

  • Both parties must be registered for GST when the RCTI is issued.
  • The supplier must have agreed in writing to the buyer issuing RCTIs. The agreement can be a separate document or part of the RCTI.
  • The goods or services must be of a kind the Commissioner has determined can be invoiced this way.
  • The RCTI must show that it is a recipient created tax invoice, both parties' ABNs and, where GST applies, that the supplier pays it.
  • The buyer must give the supplier the original or a copy within 28 days of the sale, or of the day the buyer works out the value, and keep a copy.

It exists for cases where the buyer is the one who knows the final amount, such as when a price depends on the buyer's own measurement or weighing. The ATO's pages and determination list which kinds of supply qualify, so check them for your case.

RCTI example

This is an illustration only, not a template and not tax advice.

RECIPIENT CREATED TAX INVOICE
Issued by the buyer for the supplier

Buyer: Harbour Grain Co, ABN [buyer ABN]
Supplier: Orchard Farm, ABN [supplier ABN]
Date: 18 October 2026

Description              Qty    Price    Amount
Grain, delivered (tonnes) 20    220.00   4,400.00

GST (10%)                                  400.00 included in the total
Total (includes GST)                     4,400.00

The supplier is liable for the GST on this supply.

The names, quantities and prices are made up.

Common mistakes

  • A tax invoice with no label or no ABN.
  • An RCTI issued without a written agreement.
  • A wrong GST amount.
  • Both the buyer and the supplier issuing an invoice for the same sale.

How to check a tax invoice

Our checker tests the arithmetic and basic fields on an invoice PDF: the line totals, the tax and the grand total. It does not decide whether a document qualifies as a tax invoice or an RCTI. Use the GST invoice checker or upload an invoice on the homepage.

Tax invoice FAQ

What is the difference between a tax invoice and an invoice?

A tax invoice is an invoice that meets the tax rules and is issued by a registered seller, so the buyer can claim the tax back. A plain invoice need not show tax.

Who issues an RCTI?

The buyer, on behalf of the supplier, under a written agreement, and only for eligible supplies.

Does an RCTI need an agreement?

Yes. The ATO says the supplier must have agreed in writing, either in a separate document or in the RCTI itself.

Is a receipt a tax invoice?

Only if it contains everything a tax invoice needs. In many retail sales, one document is both.

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