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.

Administered by Department of the Treasury

Legislation au F2006B11583 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. 7) 2001 – Corporate Purchasing 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 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 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 (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 1/11 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 1/11 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 1/11 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 1/11 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 1/11 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 6th day of December 2001.

 

 

 

Signed by Anthony Long

Assistant Commissioner

Goods and Services Tax (Financial Supplies)

Delegate of the Commissioner

Overview

The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 7) 2001, issued under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999, was enacted to address the administrative burden on businesses regarding the requirement to hold tax invoices for creditable acquisitions made through corporate purchasing accounts. The objective of this determination is to streamline the process for attributing input tax credits without compromising the integrity of the tax system. The determination allows a Corporate Purchasing Account Holder of American Express International Inc. to forgo holding a tax invoice for creditable acquisitions if certain conditions are met, including the availability of a Corporate Purchasing Account Statement with specified details, adherence to corporate policies, and supplementary documentation for private or domestic acquisitions. The determination also outlines circumstances where a tax invoice remains necessary, ensuring compliance with GST regulations. The determination was made by Anthony Long, the Assistant Commissioner of Goods and Services Tax (Financial Supplies), and signed on 6 December 2001. It applies to corporate entities using American Express International Inc.'s Corporate Purchasing Account, providing a more flexible approach to GST compliance while maintaining the necessary oversight and control mechanisms.

Scope and Application

The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 7) 2001 pertains specifically to the circumstances under which a Corporate Purchasing Account Holder of American Express International Inc. is exempt from the requirement to hold a tax invoice for creditable acquisitions. This determination applies to entities that hold a Corporate Purchasing Account with American Express International Inc., which is used to purchase goods and services for commercial purposes. The determination outlines the conditions under which such entities can claim an input tax credit without possessing a tax invoice, provided that certain documentation and conditions are met. These conditions include the possession of a Corporate Purchasing Account Statement from American Express International Inc. that details the required information about the acquisition, and the implementation of an effectively regulated corporate policy to distinguish between private and business expenditures. The determination also imposes obligations on American Express International Inc. to ensure the accuracy of the information provided on the statements and to advise Corporate Purchasing Account Holders to obtain tax invoices for certain types of acquisitions. This legislative instrument extends the application of the A New Tax System (Goods and Services Tax) Act 1999 by specifying exceptions to the general requirement for tax invoices, thereby facilitating the attribution of input tax credits for eligible entities.

Key Provisions

This determination, made under the A New Tax System (Goods and Services Tax) Act 1999, outlines a specific scenario where the requirement for a tax invoice is waived (paragraph 3). In particular, a Corporate Purchasing Account Holder of American Express International Inc. is not required to hold a tax invoice for creditable acquisitions made using the Corporate Purchasing Account to attribute an input tax credit to a tax period (subsection 29-10(3)). This waiver applies if, at the time of submitting the GST return or Business Activity Statement (BAS) to the Commissioner, the Corporate Purchasing Account Holder holds a Corporate Purchasing Account Statement from American Express International Inc. that includes specific details about the acquisition, such as the date, supplier's name, ABN, and the total amount paid (paragraph 4(a)). Additionally, the Corporate Purchasing Account Holder must have a corporate policy for making adjustments for private or domestic expenditures and supplementary documentation supporting each acquisition with a private or domestic component (paragraphs 4(b) and 4(c)). American Express International Inc. must also meet certain conditions, such as providing the date of each supply on the statement and obtaining necessary information from the merchant if not provided (paragraphs 5 and 6). The obligations imposed on the parties include the Corporate Purchasing Account Holder holding a Corporate Purchasing Account Statement with specified details for each creditable acquisition and having supplementary documentation for acquisitions with private or domestic components (paragraph 4). The Corporate Purchasing Account Holder must also have an effectively regulated corporate policy for making adjustments for private or domestic expenditures (paragraph 4(b)). American Express International Inc. must provide the purchase dates of each supply on the statement and meet certain conditions if the merchant does not provide all required information (paragraphs 5 and 6). In such cases, American Express International Inc. may separately obtain the supplier's ABN and GST registration status and calculate the GST amount, provided they obtain a signed statement from the merchant and retain it for at least five years (paragraph 6). Failure to comply with the requirements of this determination may result in various consequences. However, the determination does not explicitly outline offences, penalties, or specific civil or criminal consequences for breaches. It is likely that any breaches would be subject to the general provisions of the A New Tax System (Goods and Services Tax) Act 1999, which could include penalties for providing false or misleading information, failing to lodge a BAS, or other related offences. The maximum penalties for such offences can vary depending on the severity and nature of the breach but could include fines and, in some cases, imprisonment.

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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.