Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) No. 2 Determination 2020

Administered by Department of the Treasury

Legislation au F2020L01518 In force Legislative Instrument

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Explanatory Statement

 

Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) No. 2 Determination 2020

 

 

General Outline of Instrument

  1. This instrument is made under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999.
  2. 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.
  3. This determination allows corporate card holders to claim input tax credits without holding a tax invoice in certain circumstances.
  4. The instrument is a legislative instrument for the purposes of the Legislation Act 2003.
  5. This instrument replaces Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Legislative Instrument 2020 F2020L00110 (the previous legislative instrument), registered on 10 February 2020.

 

Date of effect

6.                  The instrument is taken to have commenced on 11 February 2020, the date of commencement of the previous legislative instrument. It applies to tax periods that commence on or after 10 February 2020, being the application date in the previous legislative instrument.

7.                  The instrument adds an additional corporate card provider not included in the previous instrument and applies retrospectively to ensure taxpayers issued a credit card statement by that corporate card provider are not disadvantaged. For the purposes of subsection 12(2) of the Legislation Act 2003 this instrument does not adversely affect the rights or liabilities of any person other than the Commonwealth.

 

What is this instrument about

8.                  The purpose of this instrument is to add a corporate card provider not included in the previous legislative instrument, that has requested to be added to the list of approved providers and has met the requirements as outlined in WTI 2020/2. The instrument allows holders of a corporate card statement from an approved provider to claim input tax credits without the requirement to hold a tax invoice.

 

What is the effect of this instrument

9.                  The effect of this instrument is, for tax periods commencing on or after 10 February 2020 that the GST tax invoice record keeping concessions contained in the revoked instrument continue to operate in substantially the same way.

10.              The instrument allows an additional corporate card provider to issue corporate card statements that meet the requirements of this instrument.

11.              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

12.              This determination replaces Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Legislative Instrument 2020, registered on 10 February 2020.

13.              This determination includes a corporate card provider entity that has applied to be included in this legislative instrument. This determination is otherwise the same as the previous legislative instrument that it replaces. An entity that satisfied the requirements of the previous legislative instrument will satisfy the requirements of this determination.

14.              The concession in this instrument and the revoked instrument are granted to reduce compliance costs for entities claiming input tax credits for creditable acquisitions, by permitting the entity (the holder of certain corporate cards) to claim an input tax credit without holding a tax invoice. Instead, the cardholder was required to hold a corporate card statement (issued by the corporate card provider) that met certain information requirements specified in the instruments.

 

Explanation

15.              Provided the requirements of this instrument are met, for the purposes of attributing an input tax credit for a creditable acquisition to a tax period, a cardholder is not required (under subsection 29-10(3) of the GST Act) to hold a tax invoice for the creditable acquisition (section 7). In summary, the corporate card statement may be used to claim input tax credits where:

(a)               the cardholder holds a corporate card statement for the creditable acquisition that contains the information set out in section 9

(b)               the GST related information on the corporate card statement meets the accuracy requirements set out in section 12

(c)                the cardholder meets the requirements of section 13 that ensure the cardholders use the statement accurately to claim input tax credits

(d)               section 11 does not apply. This section requires the cardholder to hold a tax invoice in relation to the acquisition where the statement shows an estimated GST amount, or there is an error in relation to the acquisition, and

(e)               the card statement issued by the corporate card provider meets the information requirements specified in this instrument by using either of two methods:

(i)                  the accurate method provided by paragraph 8(2)(b), or

(ii)                the signed statement method provided by paragraph 8(2)(c).

16.              For low value transactions (currently those that do not exceed $75 in value) there is no requirement under subsection 29-10(3) of the GST Act to hold a tax invoice. Therefore, this instrument is not applicable to low value transactions.

 

Consultation

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

18.              For this instrument, public consultation was undertaken for a period of 4 weeks commencing on 4 September 2020.

19.              The draft instrument and draft explanatory statement were published on the ATO Legal database. Publication was advertised via the ‘What’s new’ page on that system and via the ‘Open Consultation’ page on ato.gov.au.  Major tax and superannuation publishers and associations monitor these pages and include the details in the daily and weekly Alerts and newsletters to their subscribers and members. This ensures advice of the draft is disseminated widely across the tax professional community, and that they are in an informed position to provide comments and feedback.

20.              No feedback was received.

 

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

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) No. 2 Determination 2020

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 Instrument

This Legislative Instrument allows corporate card holders to claim input tax credits without holding a tax invoice in certain circumstances.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms as it is considered to be minor or machinery in nature and does not substantially change the law.

The purpose of this instrument is to add a corporate card provider not included in the previous legislative instrument, that has requested to be added to the list of approved providers and has met the requirements as outlined in WTI 2020/2. The instrument allows holders of a corporate card statement from an approved provider to claim input tax credits without the requirement to hold a tax invoice

 

Conclusion

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

Overview

The Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) No. 2 Determination 2020 was enacted to allow corporate card holders to claim input tax credits without holding a tax invoice in certain circumstances, thereby reducing compliance costs for entities claiming such credits. This determination, made under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999, was introduced to streamline tax processes for corporate card users. It replaces an earlier legislative instrument from February 2020 and includes an additional corporate card provider that meets the specified requirements. The objective is to ensure that corporate card holders can use their statements to claim input tax credits accurately and without the necessity of holding a tax invoice, provided the card statements meet certain information requirements. This change applies retrospectively to tax periods starting from 10 February 2020, ensuring that taxpayers are not disadvantaged by the inclusion of the new provider.

Scope and Application

The Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) No. 2 Determination 2020 is a legislative instrument made under the A New Tax System (Goods and Services Tax) Act 1999. This determination replaces an earlier instrument registered on 10 February 2020 and adds a new corporate card provider to the list of approved entities. It allows holders of corporate card statements from these approved providers to claim input tax credits without holding a tax invoice, provided the statement contains specific information and meets certain accuracy requirements. This waiver applies to tax periods commencing on or after 10 February 2020 and is designed to reduce compliance costs for entities claiming input tax credits. The instrument does not affect low-value transactions, those currently valued at $75 or less, for which the tax invoice requirement is already waived under the GST Act. The instrument applies nationally and is considered minor or machinery in nature with no substantial impact on human rights or freedoms.

Key Provisions

The Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) No. 2 Determination 2020 (the Determination) allows corporate card holders to claim input tax credits without holding a tax invoice in certain circumstances (section 7). This provision is particularly significant for tax periods commencing on or after 10 February 2020, which is the application date of the previous instrument. The Determination modifies the previous legislative instrument by including an additional corporate card provider that has met the specified requirements outlined in WTI 2020/2. This amendment ensures that taxpayers who have been issued a credit card statement by this new provider are not disadvantaged (section 10). The Determination is designed to reduce compliance costs for entities claiming input tax credits for creditable acquisitions by permitting the use of a corporate card statement instead of a tax invoice, provided certain conditions are met. The Determination imposes several obligations on the parties it governs. Corporate card holders must ensure that their corporate card statements contain the information set out in section 9 and meet the accuracy requirements specified in section 12. Furthermore, cardholders must comply with the requirements of section 13 to ensure they use the statement accurately to claim input tax credits. Corporate card providers, on the other hand, must issue statements that meet the information requirements specified in the Determination, either through the accurate method outlined in paragraph 8(2)(b) or the signed statement method provided by paragraph 8(2)(c) (section 8). If the corporate card statement shows an estimated GST amount or there is an error in relation to the acquisition, the cardholder must hold a tax invoice (section 11). There are no explicit offences or penalties mentioned in the Determination for breaches of its provisions. However, the Determination does state that the concession granted is intended to reduce compliance costs and ensure that entities can claim input tax credits without unnecessary burden. It is important for corporate card holders and providers to adhere to the specified requirements to avoid any potential complications in claiming input tax credits. While the Determination itself does not outline specific penalties for non-compliance, any failure to comply with the requirements of the A New Tax System (Goods and Services Tax) Act 1999 could result in civil or criminal consequences under that Act. These could include fines and imprisonment, depending on the nature and severity of the breach.

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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.