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
- This determination may be cited as: A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 5 ) 2000 – holders of InnClub Invoice/Statement issued by Flag Choice Hotels Limited.
Commencement
2. (i) This determination commences on the date on which it is issued.
(ii) This determination does not revoke or vary any previous determination made by the Commissioner.
Circumstances 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 customer of Flag Choice Hotels Limited (Flag Choice) will not be required to hold a tax invoice for a creditable acquisition purchased with a Flag Choice InnClub card in order to attribute an input tax credit on the acquisition to a tax period provided that, at the time the customer gives its GST return/Business Activity Statement (“BAS”) for the tax period to the Commissioner, the customer holds an InnClub Invoice/Statement issued by Flag Choice Hotels Limited that records the acquisition and includes the following information:
(i) the entity’s name;
(ii) the name(s) of the person(s) who uses the Flag Choice InnClub Card to
purchase the creditable acquisition;
(iii) the entity’s Australian Business Number (‘ABN’) or address;
(iv) each taxable supply, input taxed and non GST supply is clearly identified;
(v) the total amount of Australian GST payable with respect to the taxable
supplies on the statement;
(vi) suppliers’ Branch Registration Number (where applicable); and
(vii) for each creditable acquisition the statement shows:
- date the acquisition was purchased;
- the supplier’s name;
- the supplier’s ABN;
- the guest name;
- the property name;
- a brief description of the supply (that is, accommodation, food & bar, other costs); and
- the invoice number.
Definitions
5. 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.
Customer of Flag Choice Hotels Limited is the registered entity that is the corporate holder of the Flag Choice InnClub card.
Flag Choice Inn Club Card is a card that is issued to and in the name of an entity by Flag Choice Hotels Limited.
InnClub Invoice/Statement is a statement of liability issued by Flag Choice to a Customer of Flag Choice Hotels Limited.
Person(s) who uses the Flag Choice InnClub Card include a partnership, sole trader, director and employee of an entity.
Other expressions in this Determination have the same meaning as in the Act.
Dated this 10th day of November 2000.
Signed by Tracey Mellick
Assistant Commissioner
Goods and Services Tax Program
Delegate of the Commissioner
Overview
The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 5) 2000, issued under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999, aims to address the need for a waiver of tax invoice requirements in specific circumstances for holders of InnClub Invoice/Statements issued by Flag Choice Hotels Limited. This determination was made by Tracey Mellick, the Assistant Commissioner and Goods and Services Tax Program Delegate of the Commissioner, and it came into effect on the date of its issuance without revoking or varying any previous determinations. The primary objective is to provide a streamlined process for customers of Flag Choice Hotels Limited who use an InnClub card for creditable acquisitions, allowing them to attribute input tax credits to their tax period provided they hold an InnClub Invoice/Statement that meets specific criteria.
Scope and Application
This determination applies to customers of Flag Choice Hotels Limited who have made creditable acquisitions using a Flag Choice InnClub card. It modifies the requirements under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999, specifically waiving the necessity for a tax invoice under certain conditions. These conditions apply only if the customer possesses an InnClub Invoice/Statement issued by Flag Choice Hotels Limited, which must include specific details such as the entity’s name, ABN or address, ABNs of suppliers, and descriptions of the supplies, among other particulars. The waiver applies nationwide, affecting entities that transact with Flag Choice Hotels Limited. Notably, this determination does not override any previous determinations made by the Commissioner and commenced on the date of issuance. It is a legislative instrument designed to streamline the record-keeping process for eligible customers, ensuring they can attribute input tax credits correctly without needing a traditional tax invoice.
Key Provisions
The main operative sections of this determination (sections 3 and 4) clarify the circumstances under which the requirement for a tax invoice does not apply. Specifically, section 4 stipulates that customers of Flag Choice Hotels Limited will not need to hold a tax invoice for creditable acquisitions made with a Flag Choice InnClub card to attribute an input tax credit to a tax period. Instead, they must hold an InnClub Invoice/Statement issued by Flag Choice Hotels Limited that includes specified information. This includes the entity’s name, the name of the person using the card, the entity’s Australian Business Number or address, identification of each taxable supply, input taxed and non GST supply, the total GST payable, suppliers' Branch Registration Number, and detailed information about each creditable acquisition such as the date of purchase, supplier’s details, guest name, property name, a brief description of the supply, and the invoice number.
The obligations imposed by this Act on the parties it governs are primarily on Flag Choice Hotels Limited to issue accurate InnClub Invoice/Statements to their customers. These statements must contain all the required information as outlined in section 4. Customers of Flag Choice Hotels Limited must ensure that they hold these statements when lodging their GST return/BAS with the Commissioner. The Act also places a responsibility on the customers to verify that all required information is accurately recorded on the InnClub Invoice/Statement before claiming input tax credits.
Breaches of the provisions in this determination can result in civil or criminal penalties under the A New Tax System (Goods and Services Tax) Act 1999. For instance, providing false or misleading information in a GST return or BAS could lead to penalties under section 28-5, which includes fines of up to 5,000 penalty units for individuals and 25,000 penalty units for corporations, in addition to potential imprisonment terms. The Act also provides for recovery of unpaid GST, interest, and additional penalties. It is essential for both Flag Choice Hotels Limited and their customers to comply with the requirements to avoid these legal consequences.