Do sole traders need to charge GST on all invoices?
Understand when GST must be charged on invoices, and how invoicing changes if you are not registered for GST.
Summary
Only sole traders who are registered for GST charge GST on their sales. If you are not registered for GST, you must not charge GST or issue a document called a tax invoice.
What this means
If your business is registered for GST, you generally charge GST on your taxable sales and issue tax invoices that meet the ATO's requirements. If you are not registered for GST, you still issue invoices, but they are standard invoices – not tax invoices – and you do not include a GST amount.
Some sales are GST-free or input taxed, so even when registered you do not charge GST on every sale. Most businesses must register when their GST turnover reaches $75,000 or more, while taxi and ride-sourcing businesses must register regardless of turnover. Businesses below the threshold can generally register voluntarily, and registered businesses may be able to claim GST credits on eligible business purchases.
Typical actions
- Check whether your business is registered for GST.
- If registered, make sure your invoices meet the tax invoice requirements.
- If not registered, use standard invoices without a GST amount.
- Consider whether any of your sales are GST-free or input taxed.
- Monitor your GST turnover and, if registration becomes compulsory, register within the required timeframe.
Official ATO sources
Last checked: 24 August 2026
Tax invoices
Explains the requirements for a valid tax invoice.
Setting up your business invoices
Explains invoice setup, including when to use tax invoices vs standard invoices.
Related questions
- Do sole traders need to register for GST?
- What is a tax invoice?
- Do sole traders need to lodge a BAS?
- What records do sole traders need to keep?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
Need help understanding this in plain English?
Try the Tax Clarity App for a plain-English answer.