Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 17) 2015

Overview

The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No.17) 2015 was enacted to address the need for streamlined invoicing and payment practices in the telecommunications industry, specifically for telephone information service providers. This legislative instrument, created under the A New Tax System (Goods and Services Tax) Act 1999, was developed by the Commissioner of Taxation and serves to balance the facilitation of practical use of RCTIs by businesses while maintaining the integrity of the GST system. The instrument allows telephone information service providers, who receive information from content providers, to issue RCTIs if they establish the value of the supply and meet the outlined requirements. It is designed to have minimal compliance cost impacts and does not require further consultation as it is considered minor or machinery in nature, maintaining compatibility with human rights as it does not engage any applicable rights or freedoms.

Scope and Application

This legislative instrument pertains to the A New Tax System (Goods and Services Tax) Act 1999, specifically enabling telephone information service providers, who are recipients of information, to issue Recipient Created Tax Invoices (RCTIs) to content providers under certain conditions. The determination is made under subsection 29-70(3) of the Act and is applicable to entities in the telecommunications and content provision industries involved in the supply of information. This instrument is confined to the Commonwealth jurisdiction and does not apply retrospectively, commencing on the day after registration. The primary condition for the issuance of RCTIs by telephone information service providers is that they must determine the value of the supply of information post-delivery and meet the requirements outlined in the legislative instrument. This is intended to facilitate practical use of RCTIs by businesses while maintaining the integrity of the GST system. There are no stated exclusions or exemptions within this determination, though its application may be further extended or restricted through subordinate instruments. The instrument is considered minor or machinery in nature, hence no substantive consultation was necessary for its development.

Key Provisions

The main operative sections of the Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 17) 2015 (the Determination) are primarily concerned with the issuance of Recipient Created Tax Invoices (RCTIs) by telephone information service providers to content providers (section 6). Under section 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999, the Commissioner has the authority to determine classes of tax invoices that may be issued by recipients of taxable supplies. This Determination allows a telephone information service provider, as the recipient of information, to issue RCTIs to a content provider if specific conditions are met, including that the telephone information service provider establishes the value of the supply of information after it is made and satisfies the requirements set out in Clause 6 of the legislative instrument. The Determination imposes several obligations on the parties it governs. Firstly, the telephone information service provider must determine the value of the taxable supply of information after it is made. This ensures that the invoice accurately reflects the value of the goods or services provided. Secondly, the telephone information service provider must satisfy the specific requirements outlined in Clause 6 of the Determination, which may include maintaining certain records and providing details necessary for the RCTI to be valid. These obligations are essential to maintain the integrity of the GST system while allowing for practical use of RCTIs by businesses. There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination itself for breach of its provisions. However, any breach of the A New Tax System (Goods and Services Tax) Act 1999 or the legislative instrument could potentially lead to penalties under the Act. For example, failure to issue a tax invoice when required or providing an incorrect tax invoice could result in penalties. Under the Act, the penalties for providing false or misleading documents can include fines and imprisonment, with the exact penalties depending on the nature and extent of the contravention. The Determination aims to streamline invoicing practices and ensure compliance with GST requirements, but the enforcement and penalties would be governed by the overarching legislation.