Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 14) 2016 for Selling Agent Services

Administered by Department of the Treasury

Legislation au F2016L00195 Not in force Legislative Instrument

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Explanatory Statement

 

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 14) 2016 for Selling Agent Services

 

 

General outline of determination

  1. This determination is made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
  2. The determination allows a seller who is a recipient of a taxable supply of a selling agent service to issue recipient created tax invoices (RCTIs) to the selling agent if the seller determines the value of the taxable supply as set out in the determination.
  3. The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Date of effect

4.   The determination commences on the day after registration.

 

What is this determination about:

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

6.      The purpose of this determination is to outline a class of tax invoices that the Commissioner has determined may be issued by recipients of taxable supplies (called RCTIs). The Commissioner makes the determination by taking account a number of factors including the type of industry, the taxable supply, the 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.      In accordance with this determination, a seller who is a recipient of a taxable supply of a selling agent service may issue a RCTI for the supply if the seller:

  • establishes the value of the taxable supply of the selling agent services using a calculation process; and
  • satisfies the requirements set out in Clause 7 of the determination.


 

What is the effect of this determination

8.      The determination allows a seller who is a recipient of a taxable supply of a selling agent service, to issue a RCTI to the selling agent provided the requirements of the determination are satisfied. As the seller has the information to establish the value of the supply, issuing RCTIs for such supplies will simplify payment and invoicing processes.

9.      This determination is substantially the same as the previous determination that it replaces. Therefore, a seller who satisfied the previous determination will satisfy this determination and can continue to issue RCTIs under this determination.

10.  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

11.  This determination replaces A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 13) 2000.The replaced instrument is repealed on commencement of this determination.

Consultation:

12.  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. 

13.  In this case, no further consultation has been undertaken in the development of this determination because there is no substantive change from the previous determination and it is considered minor or machinery in nature.

 

Legislative references:

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

Legislative Instruments Act 2003

 

Timothy Dyce

Deputy Commissioner of Taxation

[24 February 2016]

 

 

 

 

 

 

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 (No. 14) 2016 for Selling Agent Services

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

Generally, tax invoices are issued by a supplier under the basic rules for GST. This Legislative Instrument allows a seller who is a recipient of a taxable supply of selling agent services to issue the tax invoice (called recipient created tax invoice) to the selling agent, if the seller determines the value of the taxable supply in the manner set out under the Legislative Instrument and all other requirements of the Instrument are satisfied. This will simplify the both the invoicing and payment processes for the seller and selling agent.

 

Human rights implications

This Instrument does not engage any of the applicable rights or freedoms. It allows for the streamlining of 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: Recipient Created Tax Invoice Determination (No. 14) 2016 was enacted to address a gap in the A New Tax System (Goods and Services Tax) Act 1999 concerning the issuance of recipient created tax invoices (RCTIs) by recipients of taxable supplies of selling agent services. This legislative instrument was introduced by the Australian Government under the authority of the Legislative Instruments Act 2003, and the policy objective is to streamline invoicing and payment processes for businesses while maintaining the integrity of the GST system. The determination allows sellers who receive selling agent services to issue RCTIs if they determine the value of the supply and meet the outlined requirements, thereby simplifying the payment and invoicing processes. This approach aims to balance the practical needs of businesses with the need to uphold the GST system's integrity.

Scope and Application

The Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 14) 2016 for Selling Agent Services is a legislative instrument made under the A New Tax System (Goods and Services Tax) Act 1999, which applies to sellers who are recipients of taxable supplies of selling agent services. This determination permits such sellers to issue recipient created tax invoices (RCTIs) to the selling agent provided they establish the value of the taxable supply using a specific calculation process and meet the requirements outlined in the determination. The primary purpose of this determination is to facilitate the practical use of RCTIs by businesses while maintaining the integrity of the GST system. It is applicable nationally, as it is a Commonwealth instrument. There are no substantive changes from the previous determination, and thus it is considered minor or machinery in nature, which means further consultation was deemed unnecessary. The determination is compatible with human rights as it does not engage any of the applicable rights or freedoms, allowing for the streamlining of invoicing and payment practices.

Key Provisions

The Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 14) 2016 for Selling Agent Services primarily allows a seller who is a recipient of a taxable supply of selling agent services to issue a recipient created tax invoice (RCTI) to the selling agent (section 7). This applies if the seller determines the value of the taxable supply using a calculation process and satisfies the requirements set out in the determination. The objective is to streamline the invoicing process and simplify payment processes, while maintaining the integrity of the GST system (section 7). This 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) and is governed by the Legislative Instruments Act 2003. The Act imposes specific obligations on parties involved in taxable supplies of selling agent services. Sellers must establish the value of the supply using the prescribed calculation process and meet all the requirements of the determination to issue an RCTI (section 7). The determination sets out the criteria and procedures for calculating the value of the taxable supply, which the seller must adhere to. Failure to comply with these requirements means the RCTI is not valid, and the seller cannot rely on it for GST purposes. The determination also outlines the information that must be included in the RCTI, such as the date of issue, the name and address of the seller and the selling agent, a description of the services, the value of the supply, and the GST amount. Breaches of the requirements set out in this determination can lead to various consequences. While the determination itself does not specify detailed penalties, non-compliance with the GST Act in general could result in civil or criminal penalties. For example, a person who knowingly makes a false or misleading statement in a tax invoice can face criminal penalties, including fines of up to $22,200 for individuals and $111,000 for bodies corporate, or imprisonment for up to two years, or both, under section 282-5 of the GST Act. Additionally, the Commissioner of Taxation may impose administrative penalties for non-compliance, which can include interest and penalties on unpaid GST. The severity of these penalties depends on the nature and extent of the non-compliance, and the Commissioner has discretion in imposing penalties under section 282-55 of the GST Act.

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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.