A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 6) 2004 - Corporate Purchasing Account Holder of American Express International Inc

Administered by Department of the Treasury

Legislation au F2005B01852 Not in force Legislative Instrument

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COMMONWEALTH OF AUSTRALIA

 

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

 

DETERMINATION

 

I, Anthony Long in the exercise of the powers and functions conferred upon me, by delegation from the Commissioner of Taxation pursuant to section 8 of the Taxation Administration Act 1953 (Cth), do hereby determine under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999:

Citation

1.   This determination is the A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 6) 2004 - Corporate Purchasing Account Holder of American Express International Inc.

Commencement and application

2.  (1) This determination commences on 1 July 2004.

(2) This determination replaces the A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination         (No. 7) 2001 – Corporate Purchasing Account Holder of AMERICAN EXPRESS INTERNATIONAL INC. (the "predecessor determination").       

(3)  This determination does not revoke or vary any other previous                              determination made by the Commissioner or a delegate of the                                           Commissioner.

(4)  This determination applies in relation to net amounts for tax periods starting on or after 1 July 2004.

(5) The predecessor determination ceases to apply in relation to net                              amounts for tax periods starting on or after 1 July 2004.

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 Corporate Purchasing Account Holder of American Express International Inc. will not be required to hold a tax invoice for a creditable acquisition purchased with the Corporate Purchasing Account in order to attribute an input tax credit on the acquisition to a tax period provided that at the time the Corporate Purchasing Account Holder gives its GST return/Business Activity Statement ("BAS") for the tax period to the Commissioner:


(a)          The Corporate Purchasing Account Holder holds a Corporate Purchasing Account Statement produced by American Express International Inc. that includes the following details:

(i)            The Corporate Purchasing Account Holder's name;

(ii)         The name(s) of the person(s) or department(s) who uses the Corporate Purchasing Account to purchase the creditable acquisition(s);

(iii)       The Corporate Purchasing Account Holder's Australian Business Number ('ABN') or address; and

(iv)        For each acquisition for which the Corporate Purchasing Account Holder may claim an input tax credit, the Corporate Purchasing Account Statement has:

  • the date the Corporate Purchasing 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 Corporate Purchasing Account Holder has an effectively regulated corporate policy for making adjustments for expenditure on the Corporate Purchasing Account that is of a private or domestic nature and was not made in connection with carrying on the Corporate Purchasing Account Holder's enterprise;

 

(c)          The Corporate Purchasing Account Holder has supplementary documentation supporting each acquisition on the Corporate Purchasing Account Statement that has a private or domestic component, and the documentary evidence clearly identifies the creditable and non-creditable components of the acquisition;

 

(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 that 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 2006, 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 (ie. taxable, GST-free and/or input taxed) the merchant provides;

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

(v)          the merchant will provide 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 1/11th of the price;

 

(b)          retains the signed statement for at least 5 years after the merchant ceases their association with American Express International Inc.;

 

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

 

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

 

(e)          where a supply has been identified as being a supply that may be GST-free or input taxed or a supply where GST may not be 1/11th of the price, advises the Corporate Purchasing Account Holder to obtain a tax invoice 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 supplies from that merchant. Instead, American Express International Inc. must state that the amount of GST included in the price of the supply is nil.

Situations where a tax invoice is still required

7.   The Corporate Purchasing Account Holder will still need to obtain a tax invoice before attributing input tax credits to a tax period for a supply on the Corporate Purchasing Account Statement where:

(a)          the Corporate Purchasing Account Statement indicates that the supply may be a mixed supply or a taxable supply where GST is not 1/11th of the price; or

 

(b)          where there is an error on the Corporate Purchasing Account Statement in relation to the supply.

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 Corporate Purchasing Account includes a partner, sole trader, contractor, director or employee of an entity.

Corporate Purchasing Account Statement is a statement of liability that is issued by American Express International Inc. to one of its clients.

Corporate Purchasing 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.

Corporate Purchasing Account Holder is the registered entity that holds a Corporate Purchasing 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 9th day of July 2004. 

 

Signed by Anthony Long

ASSISTANT DEPUTY COMMISSIONER OF TAXATION
Goods and Services Tax (Financial Supplies & Insurance)

 

Overview

The A New Tax System (Goods and Services Tax) Act 1999 was enacted to provide for a comprehensive national system of goods and services tax, commonly known as GST. This Act aimed to replace various indirect taxes with a uniform tax on all goods and services consumed within Australia. The legislation was introduced to create a more efficient and streamlined tax system, and it was overseen by the Australian Parliament. The policy objective was to ensure that the GST system is both broad-based and neutral, affecting all goods and services consumed in Australia in a consistent manner. One of the determinations under this Act is the A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 6) 2004, which provides certain conditions under which a tax invoice is not required for claiming input tax credits. This particular determination was made by Anthony Long, acting under delegation from the Commissioner of Taxation, and it applies to Corporate Purchasing Account Holders of American Express International Inc., allowing them to rely on account statements instead of tax invoices for claiming credits, provided specific conditions are met.

Scope and Application

The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 6) 2004 applies to corporate purchasing account holders of American Express International Inc., allowing them to claim input tax credits without holding a tax invoice for creditable acquisitions made through their corporate purchasing account, provided certain conditions are met. This determination applies to net amounts for tax periods starting on or after 1 July 2004, replacing the predecessor determination made in 2001. The circumstances under which a tax invoice is not required include the corporate purchasing account holder holding a corporate purchasing account statement produced by American Express International Inc. with specific details, and having an effectively regulated corporate policy for adjustments regarding private or domestic nature expenses. American Express International Inc. must also meet specific conditions, such as providing the date of each supply on the statement and obtaining signed statements from merchants. However, a tax invoice is still necessary for mixed supplies or where there is an error on the corporate purchasing account statement. The determination provides definitions for terms such as 'Act', 'Corporate Purchasing Account Statement', 'Corporate Purchasing Account', and 'Corporate Purchasing Account Holder', clarifying the scope and application of the waiver.

Key Provisions

The main operative sections of this determination (A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 6) 2004) are sections 3 and 7. Section 3 outlines the circumstances where a Corporate Purchasing Account Holder of American Express International Inc. is exempt from holding a tax invoice for creditable acquisitions made with their corporate purchasing account. This waiver applies if, at the time of providing their GST return/BAS to the Commissioner, the account holder holds a Corporate Purchasing Account Statement that includes all necessary details about the acquisition, the account holder has an effectively regulated policy for private or domestic expenditures, and the account holder has supplementary documentation that clearly identifies the creditable and non-creditable components of any acquisition with a private or domestic component. Section 7, on the other hand, specifies situations where a tax invoice is still required, such as when the Corporate Purchasing Account Statement indicates that the supply may be a mixed supply or a taxable supply where GST is not 1/11th of the price, or when there is an error on the Corporate Purchasing Account Statement. The obligations imposed on the parties governed by this Act include the Corporate Purchasing Account Holder having an effectively regulated corporate policy for making adjustments for private or domestic expenditures and ensuring they have supplementary documentation that clearly identifies the creditable and non-creditable components of any acquisition with a private or domestic component. The Corporate Purchasing Account Holder must also hold a Corporate Purchasing Account Statement that includes all necessary details about each acquisition made with the corporate purchasing account. Additionally, American Express International Inc. must provide the date that each supply on the statement was purchased, obtain signed statements from each merchant detailing their ABN, GST registration status, type of supply, and GST calculation method, and retain these signed statements for at least 5 years after the merchant ceases their association with American Express International Inc. American Express International Inc. must also clearly identify each supply that may be a GST-free, input taxed, or mixed supply, and advise the Corporate Purchasing Account Holder to obtain a tax invoice before attributing an input tax credit to a tax period for such supplies. Under this determination, there are no explicit offences, penalties, or civil/criminal consequences for breach stated in the text. However, non-compliance with the GST Act 1999 or failure to adhere to the conditions set out in this determination could potentially lead to penalties and consequences under the broader GST legislation. These could include fines, interest on unpaid taxes, and legal action by the Commissioner of Taxation. It is essential for the Corporate Purchasing Account Holder and American Express International Inc. to ensure compliance with this determination to avoid any potential repercussions.

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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.