Australia: Requirements of recipient created tax invoice for GST purposes

Guidance permitting certain entities to issue a recipient created tax invoice for goods and services tax purposes

Requirements of recipient created tax invoice for GST purposes

Article Posted date 15 June 2023

The Australian Taxation Office (ATO) issued guidance effective 15 June 2023, permitting certain entities to issue a recipient created tax invoice for goods and services tax (GST) purposes when certain requirements are satisfied.

According to the guidance, government-related entities, large business entities, and business entities are permitted to issue a recipient created tax invoice if they are the recipient of the taxable supply, rather than the supplier.

The guidance also outlines that one of the key requirements for issuing a recipient created tax invoice is that both a recipient and a supplier of the taxable supply must be GST-registered, and the recipient must:

  • Issue a document that complies with certain requirements in section 29-70 (about tax invoices) or section 29-75 (about adjustment notes) of the A New Tax System (Goods and Services Tax) Act 1999
  • Issue the recipient created tax invoice to the supplier within 28 days from when either the taxable supply is made by the supplier, or the value of the taxable supply is determined by the recipient
  • Retain the original or a copy of the recipient created tax invoice for five years
  • Have a written agreement with the supplier, including one embedded within the recipient created tax invoice, that meets certain requirements outlined in the instrument
  • Reasonably comply with its obligations under taxation laws

 

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