LI 2022/D15

---

A New Tax System (Goods and Services Tax) Act 1999

I, Ben Kelly, Deputy Commissioner of Taxation, make the following determination.

Draft Legislative Instrument

1. Name

This instrument is the A New Tax System (Goods and Services Tax): Recipient Created Tax Invoice Determination 2023.

2. Commencement

 

(1)

Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

 

Commencement information

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument. 

(2)

Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

 

 

3. Authority

This instrument is made under subsection 29-70(3) of the GST Act.

4. Definitions

Note: A number of expressions used in this instrument are defined in the GST Act, including the following:

 

(a)

government entity;

(b)

government related entity;

(c)

GST group;

(d)

GST joint venture;

(e)

GST turnover;

(f)

joint venture operator;

(g)

taxable supply;

(h)

tax period turnover threshold;

(i)

value

 

 

In this instrument:

GST Act means the A New Tax System (Goods and Services Tax) Act 1999.

business entity means an entity that carries on an enterprise and is registered for goods and services tax (GST).

large business entity is a business entity that:

 

(a)

meets the large business entity turnover condition;

(b)

is a member of a GST group that includes a member that meets the large business entity turnover condition;

(c)

satisfies the membership requirements of a GST group or proposed GST group and meets, or would meet, the large business entity turnover condition; or

(d)

is a joint venture operator of a GST joint venture, where either the joint venture operator or a participant of the GST joint venture meets the large business entity turnover condition.

 

 

large business entity turnover condition is that an entity’s GST turnover, disregarding the operation of paragraphs 188-15(1)(a), 188-15(2)(b), 188-20(1)(a) and 188-20(2)(b) of the GST Act, is at or above the tax period turnover threshold.

5. Schedules

Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

6. Recipients that may issue a recipient created tax invoice

The following recipients of a taxable supply may issue a recipient created tax invoice (RCTI) if they satisfy the applicable requirements in section 7:

 

(a)

a government related entity;

(b)

a large business entity; and

(c)

a business entity.

 

 

7. Requirements that must be satisfied by a recipient of a taxable supply

 

(1)

A recipient of a taxable supply that is a government related entity or a large business entity may issue an RCTI for the taxable supply if it satisfies the requirements in subsection 7(3).

(2)

A recipient of a taxable supply that is a business entity may issue an RCTI for the taxable supply if: 

(a)

it determines the value of the taxable supply acquired from the supplier; and;

(b)

satisfies the requirements in subsection 7(3).

 

(3)

The recipient of a taxable supply must: 

(a)

be registered for GST when the RCTI is issued;

(b)

confirm that the supplier is registered for GST at the time the RCTI is issued;

(c)

issue a document that complies with the requirements of: 

(i)

paragraphs 29-70(1)(b), (c) and (d) of the GST Act; or

(ii)

paragraphs 29-75(1)(b), (c) and (d) of the GST Act, for Recipient Created Adjustment Notes;

 

(d)

issue the RCTI (either as an original or a copy) to the supplier within 28 days from when either: 

(i)

the taxable supply is made by the supplier; or

(ii)

the value of the taxable supply is determined by the recipient, where the recipient is a business entity that determines the value of the taxable supply after the supply is made;

 

(e)

retain the original or a copy of the RCTI for five years;

(f)

have either a written agreement: 

(i)

with the supplier that meets the requirements of section 8; or

(ii)

embedded in the RCTI that meets the requirements of section 9;

 

(g)

not issue a document that would otherwise be an RCTI, on or after the date when either the recipient or the supplier has failed to comply with any of the requirements of this instrument; and

(h)

comply with its obligations under taxation laws.

 

 

 

8. Requirements of a written agreement with the supplier (other than a written agreement embedded in an RCTI)

A written agreement between the recipient and the supplier must:

 

(a)

specify the taxable supplies to which it relates;

(b)

be current when an RCTI is issued;

(c)

contain acknowledgments from the supplier and the recipient that each is registered for GST when it enters into the agreement; and

(d)

include these conditions: 

(i)

the recipient can issue RCTIs in respect of the supplies;

(ii)

the supplier will not issue tax invoices in respect of the supplies;

(iii)

the supplier will notify the recipient if it ceases to be registered for GST; and

(iv)

the recipient will notify the supplier if it ceases to be registered for GST.

 

 

 

9. Requirements of a written agreement embedded in an RCTI

Where an agreement between the recipient and the supplier is embedded in the RCTI, it must contain this statement:

The recipient and the supplier declare that this agreement applies to supplies to which this tax invoice relates. The recipient can issue tax invoices in respect of these supplies. The supplier will not issue tax invoices in respect of these supplies. The supplier acknowledges that it is registered for GST and that it will notify the recipient if it ceases to be registered. The recipient acknowledges that it is registered for GST and that it will notify the supplier if it ceases to be registered for GST. Acceptance of this recipient created tax invoice (RCTI) constitutes acceptance of the terms of this written agreement.

Both parties to this supply agree that they are parties to an RCTI agreement. The supplier must notify the recipient within 21 days of receiving this document if the supplier does not wish to accept the proposed agreement.

Consultation

22. Subsection 17(1) of the Legislation Act 2003 requires the Commissioner to be satisfied that appropriate and reasonably practicable consultation has been undertaken before he makes a determination.

23. As part of the consultation process, you are invited to comment on the draft determination and its accompanying draft explanatory statement.

Please forward your comments to the contact officer by the due date.

 

Schedule 1 – Repeals

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Copyrighted Material

1 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Greyhound Racing Clubs

2 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Defined Commission and/or Fee Based Services in the Financial Industry

3 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Caravan Park Operators

4 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Horseracing Clubs

5 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Australian Direct Property Investment Association Inc. and their Originating Members

6 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Quarry Operators

7 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoices Determination 2017 for Demand Side Response Aggregators

8 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Agricultural Products, Government Related Entities and Large Business Entities

9 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for wholesalers of photographic imaging equipment and related supplies

10 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Education Fund Providers

11 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Ceding Insurers or Reinsurers

12 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Food and Grocery Manufacturers and Retailers

13 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Road Transport Operators

14 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 41) 2016 for Australian Financial Services Licensees and their Representatives

15 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 37) 2016 for Research Grants

16 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 36) 2016 for Recyclers

17 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 27) 2016 for Referrers, Spotters, Sub-intermediaries or Sub-agents for General Insurance

18 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 26) 2016 for Electronic Pharmacy and Medical Centre Data

19 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 25) 2016 for Refrigerant Processors

20 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 24) 2016 for Covered Legal Services Obligation

21 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 23) 2016 for Administrators of a Superannuation Scheme

22 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 22) 2016 for Product Suppliers to Service Station Franchisees

23 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 21) 2016 for Vehicle Dealers

24 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 20) 2016 for Labour Services relating to Primary Production Activities

25 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 19) 2016 for Vending Machine Operators

26 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 18) 2016 for Friendly Societies

27 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 17) 2016 for Publishers

28 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 16) 2016 on Licences for Copyright Material

29 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 15) 2016 for Prize Winning Events

30 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 14) 2016 for Selling Agent Services

31 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 13) 2016 for Workers Compensation Insurance provided by Coal Mines Insurance Pty Ltd

32 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 12) 2016 for Construction Work

33 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 11) 2016 on Referrals

34 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 10) 2016 for Labour Services

35 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 09) 2016 on Loyalty Program Participation

36 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 08) 2016 for Commission Based Services provided to a member of the Stockbrokers Association of Australia

37 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 27) 2015

38 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 26) 2015

39 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 25) 2015

40 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 24) 2015

41 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 23) 2015

42 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 22) 2015

43 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 21) 2015

44 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 20) 2015

45 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 19) 2015

46 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 18) 2015

47 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 17) 2015

48 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 15) 2015

49 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 14) 2015

50 The whole of the instrument

Repeal the instrument

Goods and Services Tax: Classes of Recipient Created Tax Invoice Amendment Determination (No.1) 2014

51 The whole of the instrument

Repeal the instrument

 

---

Draft issued: 17 November 2022 

Ben Kelly
Deputy Commissioner of Taxation

 

 

---

Related Explanatory Statements:

LI 2022/D15 – Explanatory statement