A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 4) 2001 - Business Travel Account Holder of American Express International Inc.

Administered by Department of the Treasury

Legislation au F2006B11649 Not in force Legislative Instrument

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COMMONWEALTH OF AUSTRALIA

 

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999

 

DETERMINATION

 

Under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 I make the following determination:

 

Citation

  1.                This determination is the A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No.4) 2001 – Business Travel Account Holder of AMERICAN EXPRESS INTERNATIONAL INC.

 

Commencement

2.  This determination commences on the date the A New Tax System ( Goods and Services Tax ) Act 1999 commenced.

 

Circumstance where the requirement for a tax invoice does not apply

3. The circumstance set out in the following paragraphs is the circumstance of a kind in which the requirement for a tax invoice under subsection 29-10(3) of the Act does not apply.

4. A BUSINESS TRAVEL ACCOUNT HOLDER of AMERICAN EXPRESS INTERNATIONAL INC. will not be required to hold a tax invoice for a creditable acquisition purchased through the Business Travel Account in order to attribute an input tax credit on the acquisition to a tax period provided that at the time the BUSINESS TRAVEL ACCOUNT HOLDER gives its GST return/Business Activity Statement (“BAS”) for the tax period to the Commissioner:

(a)   The BUSINESS TRAVEL ACCOUNT HOLDER holds a Business Travel Account Statement produced by AMERICAN EXPRESS INTERNATIONAL INC. that includes the following details:

(i)     The BUSINESS TRAVEL ACCOUNT HOLDER’s name;

(ii)   The name(s) of the person(s) who uses the Business Travel Account to purchase creditable acquisitions(s);

(iii) The BUSINESS TRAVEL ACCOUNT HOLDER’s Australian Business Number (‘ABN’) or address; and

(iv)  For each acquisition for which the BUSINESS TRAVEL ACCOUNT HOLDER may claim an input tax credit, the Business Travel Account Statement has:

  • the date the BUSINESS TRAVEL ACCOUNT HOLDER purchased the acquisition;

  • the supplier’s name;
  • the supplier’s ABN;
  • the supplier’s Branch Registration Number (where applicable);
  • a brief description of the acquisition or, if that is not available, a description of the supplier’s industry;
  • the amount of GST paid; and
  • the total amount paid;

(b)   The BUSINESS TRAVEL ACCOUNT HOLDER has an effectively regulated corporate policy for making adjustments for expenditure on the Business Travel Account that is of a private or domestic nature and was not made in connection with carrying on the BUSINESS TRAVEL ACCOUNT HOLDER’S enterprise;

(c)   The BUSINESS TRAVEL ACCOUNT HOLDER has supplementary documentation supporting each acquisition on the Business Travel Account Statement that has a private or domestic component, and the documentary evidence clearly identifies the creditable and non-creditable components of the acquisition; and

(d)   AMERICAN EXPRESS INTERNATIONAL INC. meets the conditions set out in paragraphs 5 and 6 below.

5.              AMERICAN EXPRESS INTERNATIONAL INC. must provide the date each supply on the statement was purchased.

6.              Where all the information required on the statement is not provided by the merchant to AMERICAN EXPRESS INTERNATIONAL INC., the latter may, until 30 June 2004, separately obtain the supplier’s ABN and GST registration status and then calculate the amount of GST on the supply, provided AMERICAN EXPRESS INTERNATIONAL INC.:

(a)   has obtained a signed statement from each merchant that states:

(i)     the merchant’s ABN and Branch Registration Number (where applicable);

(ii)   whether or not the merchant is registered for GST;

(iii) the type of supply or supplies (i.e., taxable, GST-free and/or input taxed) the merchant provides;

(iv)  where the merchant only provides taxable supplies, whether or not GST is calculated at 1/11 of the price for all the taxable supplies the merchant provides; and

(v)    provides AMERICAN EXPRESS INTERNATIONAL INC. with an undertaking that it will be notified -

  • when the merchant ceases to be registered for GST; or
  • when  the merchant ceases to make only taxable supplies where the GST is calculated at 1/11 of the price;

(b)   retains the signed statement for at least 5 years after the merchant ceases its association with AMERICAN EXPRESS INTERNATIONAL INC.;

(c)   clearly identifies each adjustment in the statement that may be a GST-free, input taxed or mixed supply;

(d)   clearly identifies each adjustment where GST may not be 1/11 of the price;

(e)   where an adjustment has been identified as being a supply that may be GST-free, input taxed, or a supply where GST may not be 1/11 of the price, advises the BUSINESS TRAVEL ACCOUNT HOLDER to obtain an adjustment note before attributing an input tax credit to a tax period; and

(f)    where AMERICAN EXPRESS INTERNATIONAL INC. has obtained information that the merchant is not registered, or ceases to be registered for GST, AMERICAN EXPRESS INTERNATIONAL INC. must not calculate an amount of GST for adjustments from that merchant.  Instead, AMERICAN EXPRESS INTERNATIONAL INC. must state that the amount of GST included in the adjustment is $nil.

Situations where an adjustment note is still required

7. The BUSINESS TRAVEL ACCOUNT HOLDER will still need to obtain an adjustment note before attributing an adjustment to a tax period for an adjustment on the Business Travel Account Invoice Statement where:

(a)   the Business Travel Account Statement indicates that the adjustment relates to a supply that may be a mixed supply or a taxable supply where GST is not 1/11 of the price; or

(b)   where there is an error on the Business Travel Account Statement in relation to the adjustment.

 

Definitions

8. The following expressions are defined for the purposes of this determination:

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

The person(s) who uses the Business Travel Account  includes a partner, sole trader, director, contractor or employee of an entity. 

Business Travel Account Statement is a statement of liability that is issued by AMERICAN EXPRESS INTERNATIONAL INC. to one of its clients. 

Business Travel Account is an account that is held by and in the name of an entity and is used to purchase goods and services for commercial purposes.

Business Travel Account Holder is the registered entity that holds a Business Travel Account with AMERICAN EXPRESS INTERNATIONAL INC.

Mixed supply is a supply of one or more taxable supplies and any one of the following supplies:

  • a supply that is GST-free or input taxed;

  • a supply that was made before 1 July 2000.

Other expressions in this Determination have the same meaning as in the Act.

 

Dated this 22nd Day of August 2001

 

 

 

Signed by Geoffrey Mills

Assistant Commissioner

GST Law and Interpretation

Delegate of the Commissioner

Overview

The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 4) 2001 is a legislative instrument enacted under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999. This determination was introduced to address the specific needs of business travel account holders in relation to their claims for input tax credits. The determination applies to Business Travel Account Holders of American Express International Inc., allowing them to forgo the requirement of holding a tax invoice for creditable acquisitions made through their Business Travel Account, provided certain conditions are met. The objective of the determination is to streamline the tax process for business travel account holders by allowing them to rely on business travel account statements instead of traditional tax invoices, while still ensuring that the requisite information is available to the Commissioner at the time of lodging the GST return or Business Activity Statement. This determination was made by Geoffrey Mills, Assistant Commissioner of GST Law and Interpretation, and signed on the 22nd day of August 2001. It outlines the specific circumstances under which a Business Travel Account Holder will not be required to hold a tax invoice, including the necessity of holding a Business Travel Account Statement from American Express International Inc. that includes detailed information about each acquisition, as well as supplementary documentation for private or domestic components. American Express International Inc. also has specified obligations to ensure the accuracy and completeness of the information provided on the statements.

Scope and Application

The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 4) 2001 pertains specifically to business travel account holders of American Express International Inc. under the A New Tax System (Goods and Services Tax) Act 1999. This legislative instrument waives the requirement for a tax invoice for creditable acquisitions made through the business travel account, provided certain conditions are met. The waiver applies to entities that hold a business travel account with American Express International Inc., allowing them to attribute an input tax credit to a tax period without holding a tax invoice, as long as they provide a business travel account statement that includes essential details such as the holder’s name, the name of the account user, the holder’s ABN or address, the date of purchase, supplier’s details, a description of the acquisition, the GST paid, and the total amount paid. Additionally, the account holder must have a corporate policy for adjustments for private or domestic expenditures, supplementary documentation for private or domestic components of purchases, and American Express International Inc. must meet specific conditions regarding the provision of supply dates and obtaining necessary merchant information. The determination has a national reach, applying throughout Australia, and it applies to entities that meet the criteria set out, specifically business travel account holders of American Express International Inc. American Express International Inc. is also subject to specific obligations, such as providing supply dates and obtaining and retaining merchant information, which are essential to the waiver’s operation. This instrument extends the application of the A New Tax System (Goods and Services Tax) Act 1999 by providing a specific exemption for certain business travel account holders, subject to compliance with the detailed conditions outlined.

Key Provisions

The primary operative sections of this determination, specifically section 4, outline the circumstances under which a Business Travel Account Holder of American Express International Inc. will not be required to hold a tax invoice for a creditable acquisition made through their Business Travel Account to attribute an input tax credit to a tax period. This waiver applies provided that certain conditions are met when the Business Travel Account Holder submits their GST return or Business Activity Statement (BAS) to the Commissioner. Specifically, the Business Travel Account Holder must hold a Business Travel Account Statement from American Express International Inc. containing detailed information about the acquisition, including the date, supplier’s details, amount of GST paid, and total amount paid. Additionally, the Business Travel Account Holder must have a regulated corporate policy for adjusting private or domestic expenditures and supplementary documentation supporting each acquisition that identifies the creditable and non-creditable components. American Express International Inc. also has obligations, including providing the date of each supply on the statement and ensuring that all required information is included or adequately addressed in the statement. The obligations imposed on the parties under this determination are multifaceted. For the Business Travel Account Holder, the primary obligation is to ensure that their Business Activity Statement includes all necessary information about creditable acquisitions, such as the date, supplier’s details, and amounts paid. They must also have a corporate policy in place for adjusting private or domestic expenditures and maintain supplementary documentation that clearly separates creditable from non-creditable components of each acquisition. American Express International Inc. must ensure that their Business Travel Account Statements contain all required details about each supply and provide the purchase date. If all required information is not provided by the merchant, American Express International Inc. must obtain a signed statement from the merchant, retain it for at least five years, and clearly identify any adjustments that may involve mixed supplies, GST-free supplies, input taxed supplies, or GST calculations that are not at 1/11 of the price. The determination outlines specific consequences for breaches of the obligations set out in the Act. While the determination does not explicitly state maximum penalties for non-compliance, under the A New Tax System (Goods and Services Tax) Act 1999, penalties for failure to comply with tax obligations can be severe. For example, businesses may be liable for civil penalties, including fines and interest on unpaid GST. In cases of deliberate or reckless disregard of tax obligations, criminal penalties, including imprisonment, may apply. The specific consequences would depend on the nature and severity of the breach, as well as any applicable provisions within the broader GST Act.

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Definitions & Interpretation
Reporting & Disclosure Obligations
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.