Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 23) 2015
Explanatory Statement
General Outline of Instrument
- This determination is made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999.
- The determination allows recipients of aquatic products to issue Recipient Created Tax Invoices (RCTIs) to suppliers if the recipient determines the value of the taxable supply.
- The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Date of effect
4. The instrument commences on the day after registration.
5. The instrument does not apply retrospectively.
What is this instrument about:
6. The purpose of this instrument is to outline a class of tax invoices that the Commissioner has determined may be issued by recipients of taxable supplies. The Commissioner makes the determination by taking account of a number of factors including the type of industry, the taxable supply, GST turnover of the recipient and certain requirements for issuing RCTIs. The factors reflect a balance between facilitating the practical use of RCTIs by businesses and maintaining the integrity of the GST system.
7. A tax invoice that belongs to a class of tax invoices for a taxable supply of aquatic products may be issued by an entity that is the recipient of that taxable supply where:
- the recipient establishes the value of the taxable supply by a qualitative and/or quantitative process; and
- the recipient satisfies the requirements set out in Clause 6 of the legislative instrument.
What is the effect of this instrument:
8. The effect of this instrument is to allow recipients of aquatic products to issue RCTIs to the supplier. The recipient has the expertise, knowledge and access to the relevant information to accurately calculate the value of the taxable supply. This instrument allows them to streamline their current invoicing and payment practices.
9. Compliance cost impact: minor- there will be no or minimal impacts for both implementation and ongoing compliance costs. The legislative instrument is minor or machinery in nature.
Background:
10. This instrument replaces A New Tax System (Goods and Services Tax) 1999 Classes of Recipient Created Tax Invoice Determination (No. 42) 2000. The replaced instrument is repealed on the commencement of this determination.
Consultation:
11. Section 18 of the Legislative Instruments Act 2003 specifically provides for circumstances where consultation may not be necessary or appropriate. One of those circumstances is where the instrument is considered minor or machinery in nature, and does not substantially change the law.
12. Because there is no substantive change from the previous instrument therefore the instrument is considered minor or machinery in nature.
13. As such, no further consultation has been undertaken in the development of this instrument.
James O’Halloran
Deputy Commissioner of Taxation
15 September 2015
Statement of Compatibility with Human Rights
This statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 23) 2015
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
This Legislative Instrument allows certain recipients of aquatic products to issue Recipient Created Tax Invoices (RCTIs) to the suppliers, if the recipient determines the value of the taxable supply, and the requirements of the legislative instrument are satisfied.
Human rights implications
This instrument does not engage any of the applicable rights or freedoms. It allows for the streamlining of current invoicing and payment practices.
Conclusion
This instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 23) 2015, enacted by the Australian government, aims to streamline the invoicing and payment processes for businesses involved in the supply of aquatic products by allowing certain recipients to issue Recipient Created Tax Invoices (RCTIs) to their suppliers. This legislative instrument was made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 and is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The determination was introduced to facilitate practical use of RCTIs by businesses while maintaining the integrity of the GST system. The policy objective is to allow recipients of aquatic products to issue RCTIs when they determine the value of the taxable supply, thereby streamlining their current invoicing and payment practices with minimal compliance costs.
Scope and Application
The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 23) 2015 is a legislative instrument that applies to entities involved in the supply of aquatic products within the framework of the A New Tax System (Goods and Services Tax) Act 1999. Specifically, it enables recipients of these supplies to issue Recipient Created Tax Invoices (RCTIs) to their suppliers, provided the recipient has determined the value of the taxable supply and meets the stipulated requirements. This application is limited geographically to the Commonwealth of Australia and is effective from the day after its registration, without retrospective effect. The instrument excludes certain entities and transactions not falling within the defined class of aquatic product supplies. Although the primary legislation allows for further extensions or restrictions via subordinate instruments, this particular determination itself does not introduce significant changes from the previously repealed instrument, hence consultation was deemed unnecessary. The instrument is also deemed compatible with human rights, as it does not engage any of the rights or freedoms outlined in the relevant international instruments.
Key Provisions
The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 23) 2015 (the Determination) specifies under section 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 that recipients of aquatic products can issue Recipient Created Tax Invoices (RCTIs) to their suppliers, provided the recipient determines the value of the taxable supply and meets certain criteria. This provision is designed to streamline invoicing practices for businesses in the aquatic products industry, ensuring that they can efficiently manage their tax obligations without undue burden.
The Determination imposes specific obligations on the entities it governs. Recipients of aquatic products must establish the value of the taxable supply through a qualitative or quantitative process. Additionally, they must comply with the requirements outlined in Clause 6 of the Determination, which may include maintaining records and providing information to the Australian Taxation Office (ATO) as necessary. These obligations ensure that the invoicing process remains transparent and that the GST system's integrity is maintained.
Breaches of the requirements set forth in the Determination may lead to civil or criminal consequences. Although the Determination does not explicitly state the penalties, under the A New Tax System (Goods and Services Tax) Act 1999, penalties for non-compliance with tax invoice requirements can include fines and, in severe cases, imprisonment. The exact penalties would depend on the nature and extent of the non-compliance. Compliance with the Determination is crucial to avoid these potential repercussions.
The Determination also ensures compatibility with human rights, as it does not engage any of the applicable rights or freedoms as recognised or declared in international instruments. This compatibility is crucial for maintaining public trust and ensuring that the legislative framework does not inadvertently infringe on individual rights. The streamlined invoicing process facilitated by the Determination aims to enhance efficiency without compromising the fundamental rights of those involved in the aquatic products industry.