Goods and Services Tax: Waiver of Tax Invoice Requirement (eftpos Interchange Services Reports) Determination 2021

Overview

The Goods and Services Tax: Waiver of Tax Invoice Requirement (eftpos Interchange Services Reports) Determination 2021 was enacted to provide a legislative solution under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). This determination was introduced to alleviate the administrative burden on members of the eftpos payment system by allowing them to claim input tax credits for eftpos interchange services without needing a tax invoice, in specific circumstances. The determination was made by the Commissioner for Taxation under subsection 29-10(3) of the GST Act, aiming to reduce compliance costs for the members while ensuring that the requirements are clearly defined and transparent. This legislative instrument is designed to be minor and administrative in nature, with minimal compliance costs expected for both implementation and ongoing adherence.

Scope and Application

The Goods and Services Tax: Waiver of Tax Invoice Requirement (eftpos Interchange Services Reports) Determination 2021 applies to members of the eftpos payment system who acquire eftpos interchange services, allowing them to claim an input tax credit without holding a tax invoice under specific conditions. This legislative instrument is made under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and is intended to reduce compliance costs for members. The requirement to hold a tax invoice is waived if the member holds an eftpos interchange services report that meets the criteria outlined in section 8 of the determination. This waiver applies across the Commonwealth of Australia and does not affect the rights or liabilities of any person other than the Commonwealth, as stipulated under the Legislation Act 2003. There are no stated exclusions or thresholds within this determination, and it does not engage any applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Goods and Services Tax: Waiver of Tax Invoice Requirement (eftpos Interchange Services Reports) Determination 2021 (the Determination) made under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides an exemption from the requirement to hold a tax invoice for members of the eftpos payment system who acquire eftpos interchange services. Specifically, section 7 of the Determination states that where a member holds an eftpos interchange services report that meets the criteria specified in section 8, the member is not required to hold a tax invoice to attribute an input tax credit for the eftpos interchange services recorded on the report. This waiver aims to reduce the administrative burden and compliance costs for members of the eftpos payment system. The Determination imposes certain obligations on members of the eftpos payment system. Firstly, members must ensure that any eftpos interchange services report held complies with the requirements set out in section 8 of the Determination. This includes ensuring that the report accurately reflects the services acquired and the amount of the transaction. Secondly, members must maintain records of the eftpos interchange services reports held and the corresponding input tax credits attributed, as required under the GST Act. These obligations are essential for members to claim the input tax credit and comply with their tax obligations. Breach of the obligations imposed by the Determination may have civil or criminal consequences. Under section 29-10(3) of the GST Act, any person who fails to comply with the requirements for holding a tax invoice or who makes a false or misleading statement in relation to an input tax credit may be subject to penalties. The maximum penalties for making a false or misleading statement include fines of up to $11,000 for individuals and $55,000 for corporations. Additionally, any person who knowingly or recklessly makes a false or misleading statement may be subject to criminal prosecution and imprisonment for up to two years. It is important for members of the eftpos payment system to ensure compliance with the Determination to avoid these potential consequences. The Determination is a legislative instrument for the purposes of the Legislation Act 2003 and 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. The Commissioner is required to be satisfied that appropriate and reasonably practicable consultation has been undertaken before making the Determination. In this case, public consultation was undertaken for a period of 4 weeks, but no feedback was received. The Determination has been developed to reduce the compliance costs of members of the eftpos payment system, and the impact of the Determination is expected to be minimal.