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Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Food and Grocery Manufacturers and Retailers

Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Food and Grocery Manufacturers and Retailers

Administered by Department of the Treasury

Legislation au F2017L00365 Not in force Legislative Instrument

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Explanatory Statement

General outline of determination

The determination is made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
The determination allows a food and grocery manufacturer or retailer to issue recipient created tax invoices (RCTIs) in certain circumstances.

4. The determination is a legislative instrument for the purposes of the Legislation Act 2003.

Date of effect

5. The determination commences on the day after its registration on the Federal Register of Legislation.

What is the determination about

6. Generally, under the GST Act, tax invoices are issued by the entity that makes the taxable supply.

7. The purpose of the determination is to outline a class of tax invoices (called RCTIs) that the Commissioner has determined may be issued by GST registered recipients of taxable supplies. The Commissioner makes the determination by taking into account 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.

8. In accordance with the determination, a food and grocery manufacturer or retailer that is a recipient of a taxable supply of membership or association of the Australian Food and Grocery Council may issue a RCTI for the taxable supply if the entity:

(a) establishes the value of the taxable supply rather than the supplier; and

(b) satisfies the requirements set out in paragraph 6 of the determination.

What is the effect of the determination

9. The effect of the determination is to streamline payment and invoicing processes by allowing the recipient of a taxable supply, that has the information to establish the value of the taxable supply, to issue the tax invoice.

10. The determination is substantially the same as the previous determination that it replaces. An entity that satisfied the requirements of the previous determination and that is a food and grocery manufacturer or retailer will satisfy the requirements of the determination.

11. Compliance cost impact: Minor - there will be no or minimal impacts for both implementation and ongoing compliance costs. The determination is minor or machinery in nature.

Background

12. The determination replaces A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 25) 2000 – F2006B11592 – Food and Grocery Manufacturer or Retailer – registered on 17 November 2006. The previous determination is repealed on commencement of the determination.

Consultation

13. Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the rule-maker is satisfied that appropriate and reasonably practicable consultation has been undertaken.

14. Broad consultation has been undertaken. The draft determination and draft explanatory statement were published on the ATO Legal database at ato.gov.au seeking feedback and comments for a period of two weeks. Notice of the draft determination was also published to ato.gov.au and subscription alerts issued. Tax professionals and tax associations regularly review both the Legal database and ato.gov.au and further promulgate advice of new drafts issued in their internal news bulletins. The major legal publishers also publish news of the drafts in their key tax alerting services - such as the Weekly Tax Bulletin (published by Thomson Reuters Australia) and Tax Tracker and Tax Week (published by CCH Australia). Additionally, draft determinations and draft explanatory statements have been published on the ATO Consultation Hub. Links to these drafts were published organisations and newsletters such as the Taxation News (Chartered Accountants Australia and New Zealand) weekly bulletin. No comments have been received to date.

Legislative references:

A New Tax System (Goods and Services Tax) Act 1999

Acts Interpretation Act 1901

Legislation Act 2003

Human Rights (Parliamentary Scrutiny) Act 2011.

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: Recipient Created Tax Invoice Determination

2017 for Food and Grocery Manufacturers or Retailers

The 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

Generally, tax invoices are issued by a supplier under the basic rules for GST. The Legislative Instrument allows a food and grocery manufacturer or retailer that is a recipient of a taxable supply of membership or association to the Australian Food and Grocery Council to issue the tax invoice (called a recipient created tax invoice) subject to a number of provisos. The food and grocery manufacturer or retailer that issues the RCTIs must determine the value of the taxable supply and satisfy the other requirements of the Legislative Instrument. This allows for simplification of the invoicing and payment processes.

Human rights implications

The Instrument does not engage any of the applicable rights or freedoms. It allows for the streamlining of invoicing and payment practices.

Conclusion

The Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 was enacted to address the need for streamlining invoicing processes for food and grocery manufacturers and retailers. This legislative instrument is made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and is a legislative instrument for the purposes of the Legislation Act 2003. The determination allows food and grocery manufacturers and retailers to issue recipient created tax invoices (RCTIs) in certain circumstances, facilitating the practical use of RCTIs by businesses while maintaining the integrity of the GST system. The effect of this determination is to streamline payment and invoicing processes by allowing the recipient of a taxable supply to issue the tax invoice if they have the information to establish the value of the supply and satisfy the requirements set out in the determination. The determination is minor or machinery in nature and has a minor compliance cost impact.

Scope and Application

The Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 applies to food and grocery manufacturers and retailers who are recipients of taxable supplies, particularly those involving membership or association with the Australian Food and Grocery Council. This legislative instrument, made under the A New Tax System (Goods and Services Tax) Act 1999, allows these entities to issue recipient created tax invoices (RCTIs) when they have the necessary information to establish the value of the supply. The determination is designed to streamline invoicing and payment processes by allowing the recipient to issue the tax invoice, rather than the supplier, provided certain conditions are met. This instrument operates within the Commonwealth jurisdiction and replaces the previous determination from 2006, effectively repealing the earlier rules upon its commencement. Compliance with this determination is expected to incur minimal costs, as it is considered minor or machinery in nature. The determination is compatible with human rights, as it does not engage any of the applicable rights or freedoms.

Key Provisions

The Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Food and Grocery Manufacturers and Retailers (the "Determination") is a legislative instrument made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). This Determination provides an exemption for food and grocery manufacturers or retailers to issue recipient created tax invoices (RCTIs) for certain taxable supplies. Specifically, under section 8 of the Determination, a food and grocery manufacturer or retailer that is a recipient of a taxable supply of membership or association of the Australian Food and Grocery Council may issue a RCTI for the taxable supply if the entity establishes the value of the taxable supply rather than the supplier and satisfies the requirements set out in paragraph 6 of the Determination. The Determination aims to streamline payment and invoicing processes by allowing the recipient of a taxable supply, that has the information to establish the value of the taxable supply, to issue the tax invoice. The Determination imposes certain obligations and requirements on food and grocery manufacturers or retailers that issue RCTIs. Firstly, the entity must establish the value of the taxable supply rather than the supplier. Secondly, the entity must satisfy the requirements set out in paragraph 6 of the Determination, which include providing a clear and accurate description of the goods or services supplied, the date of supply, the amount of GST payable, and the name and address of the supplier and recipient. The Determination also requires that the RCTI must be issued within 28 days of the date of supply. Failure to comply with the requirements of the Determination may result in civil or criminal consequences. Under section 28-20 of the GST Act, a person who issues a tax invoice that does not comply with the requirements of the GST Act may be liable to pay a civil penalty of up to $2,100. In addition, under section 28-25 of the GST Act, a person who knowingly or recklessly issues a tax invoice that does not comply with the requirements of the GST Act may be liable to pay a criminal penalty of up to $21,000 for an individual and $105,000 for a body corporate. It is important to note that these penalties are in addition to any other penalties or consequences that may apply under other laws. In conclusion, the Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Food and Grocery Manufacturers and Retailers provides an exemption for food and grocery manufacturers or retailers to issue RCTIs for certain taxable supplies. The Determination imposes certain obligations and requirements on entities that issue RCTIs, and failure to comply with these requirements may result in civil or criminal consequences. It is important for food and grocery manufacturers or retailers to ensure that they comply with the requirements of the Determination to avoid any potential penalties or consequences.

Area of Law: Taxation Law
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Compliance Obligations; Consultation Requirements
Catchwords: Recipient Created Tax Invoice

Interactions

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.

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