A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000
as amended
made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 and subsection 4(1) of the Acts Interpretation Act 1901.
This compilation was prepared on 18 May 2009
taking into account amendments up to Recipient Created Tax Invoice – Embedded Agreement Amending Legislative Instrument 2009
Prepared by the Goods and Services Tax Centre of Expertise,
Australian Taxation Office
Citation (see Note 1)
- This determination may be cited as the A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000.
Commencement (see Note 1)
2. (a) This determination commences on the date the A New Tax System (Goods and Services Tax) Act 1999 commences.
(b) This determination does not revoke or vary any previous determination made by the Commissioner.
Application of determination
3. This determination applies to an entity not determined previously as being able to issue a tax invoice belonging to a class of tax invoices that may be issued by a recipient
Classes of Tax Invoices that may be issued by the recipient of a taxable supply
4. A vending machine operator who is the recipient of a taxable supply may issue a tax invoice that belongs to a class of tax invoices for the right to use premises for the placement of a vending machine and other incidental supplies where the recipient:
(i) establishes the value of the taxable supply as commission based on the value of the products sold, sales volume or for any other reason;
(ii) satisfies the requirements set out in Clause 5;
Requirements that must be satisfied by a recipient of a taxable supply
5. A recipient must satisfy the following requirements:
(a) the recipient must be registered for GST;
(b) the recipient must set out in the tax invoice the ABN of the supplier;
(c) the recipient must issue the original or a copy of the tax invoice to the supplier within 28 days of making, or determining, the value of a taxable supply and must retain the original or the copy;
(d) the recipient must issue the original or a copy of an adjustment note to the supplier within 28 days of the adjustment and must retain the original or the copy;
(e) the recipient must reasonably comply with its obligations under the taxation laws;
(f) the recipient must have either:
- a written agreement with the supplier specifying the supplies to which it relates, that is current and effective when the RCTI is issued, agreeing that:
(i) the recipient can issue tax invoices in respect of the supplies;
(ii) the supplier will not issue tax invoices in respect of the supplies;
(iii) the supplier acknowledges that it is registered for GST when it enters into the agreement and that it will notify the recipient if it ceases to be registered; and
(iv) the recipient acknowledges that it is registered when it enters into the agreement and that it will notify the supplier if it ceases to be registered for GST; or
- an agreement with the supplier embedded in an RCTI it issues that contains the following 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 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 agrees to notify the recipient if the supplier does not wish to accept the proposed agreement within 21 days of receiving this document.
(g) the recipient must not issue a document that would otherwise be a recipient created tax invoice, on or after the date when the recipient or the supplier has failed to comply with any of the requirements of this determination;
Definitions
6 The following expressions are defined for the purposes of this determination:
vending machine operator means a person that supplies vending machines on the premises of a business or business or non profit organisation.
7. Other expressions in this determination have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
Notes to the A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000
Note 1
The A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000 (in force under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999) as shown in this compilation is amended as indicated in the Tables below.
Table of Instruments
Title | Date of FRLI registration | Date of
commencement |
A New Tax System (Goods and Services Tax) 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000 | see F2005B02772 | 1 July 2000 |
Recipient Created Tax Invoice – Embedded Agreement Amending Legislative Instrument 2009 | 14 May 2009 (see F2009L01772) | 1 July 2009 |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
Clause 5 | am. (F2009L01772) |
Overview
The A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000, as amended, was enacted to address the need for flexibility in the issuance of tax invoices by recipients of taxable supplies. This determination, made under the authority of the A New Tax System (Goods and Services Tax) Act 1999 and the Acts Interpretation Act 1901, allows certain entities, such as vending machine operators, to issue tax invoices for the right to use premises for the placement of vending machines and other incidental supplies. The policy objective is to ensure that the tax system is adaptable to modern business practices while maintaining compliance with GST obligations. The determination specifies the conditions under which recipients can issue tax invoices, including requirements such as the recipient being registered for GST and having an agreement with the supplier that specifies the terms of the supply and tax invoice issuance. This legislative instrument was prepared by the Goods and Services Tax Centre of Expertise, Australian Taxation Office, and was last amended in 2009.
Scope and Application
The A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000 applies to entities not previously determined as being able to issue a tax invoice belonging to a specific class of tax invoices that may be issued by recipients of taxable supplies. Specifically, the determination pertains to vending machine operators who are recipients of taxable supplies and who may issue a tax invoice for the right to use premises for the placement of a vending machine and other incidental supplies. This determination operates within the Commonwealth jurisdiction and applies to entities across Australia. To be eligible, the vending machine operator must establish the value of the taxable supply as commission based on the value of the products sold, sales volume, or any other reason, and must satisfy certain requirements, including having a written agreement with the supplier or an embedded agreement in the recipient created tax invoice (RCTI). The application of this determination can be extended or restricted through subordinate instruments, such as the Recipient Created Tax Invoice – Embedded Agreement Amending Legislative Instrument 2009, which amended Clause 5 of the determination.
The determination imposes specific requirements on the recipient, including that the recipient must be registered for Goods and Services Tax (GST), set out the supplier's Australian Business Number (ABN) on the tax invoice, issue the original or a copy of the tax invoice to the supplier within 28 days of making or determining the value of the taxable supply, and issue the original or a copy of an adjustment note to the supplier within 28 days of the adjustment. The recipient must also reasonably comply with their obligations under the taxation laws and either have a written agreement with the supplier or an embedded agreement in the RCTI. The recipient must not issue a document that would otherwise be an RCTI if either the recipient or the supplier has failed to comply with any of the requirements of this determination. The determination also includes definitions for certain terms, such as "vending machine operator," and references other terms defined in the A New Tax System (Goods and Services Tax) Act 1999.
Key Provisions
The A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000 outlines the classes of tax invoices that a recipient can issue, specifically focusing on vending machine operators. According to section 4, a vending machine operator can issue a tax invoice for the right to use premises for the placement of a vending machine and other incidental supplies, provided they establish the value of the taxable supply as commission based on the value of the products sold, sales volume or any other reason, and meet the requirements set out in Clause 5. Clause 5 enumerates the obligations and requirements for the recipient to issue a valid recipient created tax invoice (RCTI). These include being registered for GST, including the supplier’s ABN in the tax invoice, issuing the tax invoice or a copy to the supplier within 28 days of the supply, retaining a copy, complying with taxation laws, and having a written agreement with the supplier or an agreement embedded in the RCTI.
The obligations imposed by the Act on the parties include the requirement for the recipient to be registered for GST and to include the supplier's ABN in the tax invoice. The recipient must issue the original or a copy of the tax invoice to the supplier within 28 days of making, or determining, the value of the taxable supply, and retain a copy. Additionally, the recipient must issue an adjustment note to the supplier within 28 days of any adjustment and retain a copy of this note. The recipient must also comply with all obligations under the taxation laws. Furthermore, the recipient must either have a written agreement with the supplier that specifies the supplies to which it relates, is current and effective, and includes certain declarations and acknowledgments, or have an agreement embedded in the RCTI that includes similar declarations and acknowledgments.
Failure to comply with the requirements of this determination may lead to civil or criminal consequences. While specific penalties are not mentioned in the text, it is implied that non-compliance with the GST laws could result in penalties as outlined in the A New Tax System (Goods and Services Tax) Act 1999. These penalties can include fines and imprisonment for serious offences. Additionally, the recipient is prohibited from issuing a document that would otherwise be a RCTI on or after the date when the recipient or the supplier has failed to comply with any of the requirements of this determination. Such non-compliance may also result in the RCTI not being recognised as a valid tax invoice for GST purposes.