COMMONWEALTH OF AUSTRALIA
A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999
DETERMINATION
Under section 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 and subsection 4(1) of the Acts Interpretation Act 1901 I make the following determination:
Citation
- This determination may be cited as the A New Tax System (Goods and Services Tax) Act 1999 Waiver of Tax Invoice Requirement Determination (No. 1) 2000.
Circumstance where the requirement for a tax invoice does not apply
2. The following circumstance is a circumstance of a kind in which the requirement for a tax invoice under subsection 29-10(3) does not apply:
(a) a transitional document, and any other document issued by the relevant supplier that relates to the transitional document, is held by a relevant recipient;
(b) the transitional document contains the following information, or, where the relevant recipient holds a transitional document and another document, the documents together contain the following information:
(i) the name or business name of the relevant supplier;
(ii) the address or ACN of the relevant supplier;
(iii) the date on which the document was issued by the relevant supplier;
(iv) if the GST payable on the taxable supply is equal to 1/11th of the price - either:
(A) the price of the taxable supply, and a statement indicating that the price includes GST; or
(B) the amount of GST payable;
(v) if the GST payable on the taxable supply is less than 1/11th of the price - the amount of the GST payable.
Definitions
3. The following expressions are defined for the purposes of this determination:
ACN (short for "Australian Company Number") is the number given by the Australian Securities and Investments Commission to a company on registration under the Corporations Law;
business name means a name registered under the relevant State and Territory legislation that provides for the registration of business names;
relevant recipient, in relation to a creditable acquisition, means:
(a) where the acquisition is made by an entity - that entity; or
(b) where the acquisition is made by an entity through an agent of the entity - the agent;
relevant supplier, in relation to a taxable supply, means:
(a) where the supply is made by an entity (other than a supply of an insurance policy made by an insurer through an insurance broker acting on behalf of the recipient of the supply) - that entity;
(b) where the supply is of an insurance policy made by an insurer through an insurance broker acting on behalf of the recipient of the supply - the insurance broker;
(c) where the supply is made by an entity through an agent of the entity - the agent;
transitional document means a document issued by a relevant supplier before 1 July 2000 in relation to a creditable acquisition made by a relevant recipient on or after 1 July 2000.
Dated this 29th day of March 2000.
Signed by Peter Chochula
Senior Tax Counsel
Goods and Services Tax Program
Delegate of the Commissioner
Overview
The A New Tax System (Goods and Services Tax) Act 1999, enacted by the Parliament of Australia, was introduced to establish a new tax system, including the Goods and Services Tax (GST), which replaced the previous federal wholesale tax system. This Act aims to provide a broad-based consumption tax while ensuring that the tax burden is shared across the economy. One of the legislative instruments under this Act is the A New Tax System (Goods and Services Tax) Act 1999 Waiver of Tax Invoice Requirement Determination (No. 1) 2000, which was created to address transitional issues during the introduction of the GST. Specifically, it waives the requirement for a tax invoice in certain circumstances where transitional documents are held by the recipient, provided these documents contain specific details about the supplier and the supply. This determination facilitates the smooth transition to the new tax regime by offering flexibility in documentation requirements during the initial phase of GST implementation.
Scope and Application
The A New Tax System (Goods and Services Tax) Act 1999 Waiver of Tax Invoice Requirement Determination (No. 1) 2000 applies to entities and individuals involved in taxable supplies and creditable acquisitions within the Australian jurisdiction. The Act specifically addresses the requirement for a tax invoice under subsection 29-10(3) in the context of transitional documents issued before the implementation of the GST on 1 July 2000. This determination exempts certain transactions from the tax invoice requirement if specific conditions are met, including the possession of a transitional document by the relevant recipient and the presence of particular information on the document. The geographic reach of this legislation is national, as it pertains to the Australian tax system and applies across all states and territories. However, the Act includes exclusions for supplies of insurance policies made by insurers through insurance brokers. Additionally, the application of this Act can be extended or restricted through subordinate instruments, providing flexibility in its implementation and enforcement.
Key Provisions
This determination (No. 1) 2000 under the A New Tax System (Goods and Services Tax) Act 1999 provides specific circumstances where the requirement for a tax invoice does not apply. Specifically, this applies when a transitional document, and any related documents issued by the supplier, is held by the recipient (section 2). For the requirement to be waived, the transitional document must contain certain specified information: the supplier's name or business name, their address or Australian Company Number (ACN), the date the document was issued, and the price of the taxable supply or the amount of GST payable (section 2(b)). The definition of a transitional document is also clarified, referring to documents issued before 1 July 2000 for creditable acquisitions made on or after that date (section 3).
Under this determination, there are specific obligations placed on both suppliers and recipients. Suppliers must ensure that any transitional documents issued before 1 July 2000 and related to creditable acquisitions made on or after this date contain the required information (section 2(b)). Recipients must hold onto these documents to claim the waiver of the tax invoice requirement (section 2). The determination also specifies who is considered a relevant supplier or recipient, depending on whether the supply is made directly or through an agent, and clarifies the definition of a business name and ACN (section 3).
Failure to comply with the requirements set out in this determination could potentially lead to legal consequences. Although the determination does not explicitly state penalties, non-compliance with tax invoice requirements generally could result in penalties under the primary Act, the A New Tax System (Goods and Services Tax) Act 1999. These penalties can include fines and, in severe cases, criminal charges. The exact penalties would depend on the specific breach and the provisions of the primary Act.