How to Invoice as a Sole Trader

Who you are on the invoice

As a sole trader, you and the business are the same legal entity, so you invoice under your own name or a registered business (trading) name. Either way, quote your ABN — it identifies you and helps your business customers pay without withholding. Add clear contact details so queries reach you quickly.

Sole-trader invoicing is refreshingly simple, but simple does not mean casual. A tidy, consistent invoice tells customers you are organised and makes you easier to pay. Decide on a layout and stick with it, so every invoice you send looks like it came from the same professional outfit.

GST: only if you're registered

Whether you add GST comes down to whether you are registered for GST. Many sole traders start out below the registration threshold and issue plain invoices with no GST. If your turnover grows, you may need to register, after which you issue tax invoices and add GST to taxable sales.

The registration threshold and the test for when you must register are set by the ATO and are indexed over time, so do not rely on a figure you saw somewhere. Keep an eye on your turnover and confirm with the ATO or your accountant when you are getting close, so you register at the right time rather than scrambling later.

Terms that get you paid

Set out clear payment terms: when payment is due, how to pay, and your bank or payment details. Sole traders often feel overdue invoices hardest because there is no finance department chasing them, so spell out the due date plainly and invoice promptly after the work is done. Consider a short, polite reminder process for late payers. The more obvious you make it to pay you, the sooner the money tends to arrive — and the less time you spend chasing instead of working.

Keep good records

Save a copy of every invoice you issue and every tax invoice you receive. Our free invoice tools make it easy to produce and store them, and how long to keep invoices covers retention.

If a customer simply will not pay, you do not have to write it off. You can refer the debt for commercial recovery.

This is general information only, not tax or legal advice. Registration and invoicing rules depend on your circumstances — confirm them with the ATO or your accountant.