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Recipient Created Tax Invoice – Embedded Agreement Amending Legislative Instrument 2009

Recipient Created Tax Invoice – Embedded Agreement Amending Legislative Instrument 2009

Administered by Department of the Treasury

Legislation au F2009L01772 Not in force Legislative Instrument

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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 GST Act).
The purpose of this determination is to update existing legislative instruments that are in respect of recipient created tax invoices.
The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Date of effect

4. The instrument commences on 1 July 2009.

5. The instrument will not apply retrospectively.

What this instrument is about

6. The purpose of this instrument is to update existing legislative instruments that are in force in respect of recipient created tax invoices.

7. Specifically, this instrument provides taxpayers with an alternative to the current requirement for the recipient to hold a written agreement with the supplier before issuing a recipient created tax invoice (RCTI). This will give recipients of supplies the option either of maintaining separate written agreements specifying the supplies to which each agreement relates and containing specific terms or of embedding these matters in tax invoices they issue.

8. This will provide flexibility and ease record keeping requirements as written agreements will not have to be retained where the alternative approach is adopted.

9. This instrument also makes technical corrections in regard to reference numbers in three instruments. The correct reference numbers for the relevant Legislative Instruments are reflected in the Tables, below.

What is the effect of this instrument

10. The effect of this instrument is that an embedded agreement will be treated as an alternative to a written agreement for the purposes of RCTI instruments. It will also make minor technical corrections.

11. The Tax Office believes the revenue impact will be nil as the instrument is not expected to alter the tax base. The instrument merely aims to reduce the compliance burden on taxpayers.

Background

12. Under subsection 29-70(3) of the GST Act, the Commissioner may determine in writing that a 'tax invoice' belonging to a class of tax invoices that may be issued by the 'recipient' of a 'taxable supply' is a 'recipient created tax invoice'. The Commissioner has made many such RCTI instruments since the commencement of the GST.

13. Amongst other things, the requirements of these RCTI instruments include the requirement that a recipient hold a written agreement with the supplier before issuing an RCTI.

14. This present instrument will provide an alternative to the requirement to hold a written agreement by embedding an agreement in a tax invoice issued by the recipient.

15. As a result of the instrument providing an alternative, the existing RCTI instruments (that make reference to the written agreement requirement) need to be updated to ensure that this alternative is reflected in those RCTI instruments.

16. The inclusion of an embedded agreement in the existing RCTI instruments will provide an alternative to the requirement for the parties to hold a written agreement from 1 July 2009.

Consultation

17. The matter was raised and discussed at meetings of the National Tax Liaison Group GST Subcommittee. No other consultation was undertaken as the instrument is considered minor or machinery in nature, and does not substantially change the law. 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.

RCTI Determinations to be amended by this instrument

18. Because some of the RCTI determinations that are in force refer to a recipient indemnifying the supplier for GST and penalty, and some do not, this determination is effected in two ways.

19. Table 1 below, lists those RCTI determinations that do not refer a recipient indemnifying the supplier for GST and penalty.

20. Table 2 below, lists those RCTI determinations that do refer to a recipient indemnifying the supplier for GST and penalty.

21. The amendments to the determinations in Table 1 do not need to refer to an indemnity.

Table 1: RCTI determinations that do not refer to an indemnity

RCTI determinations that do not refer to an indemnity
F2006B11580 – CRCTI 2000/1 A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2000
F2005B02437 - RCTI 2000/3 (as amended) - Centenary of Federation licensees A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 3) 2000.
F2005B03122 - RCTI 2000/5 – Franchisees Agreements A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 5) 2000.
F2005B02426 - RCTI 2000/9 – Direct selling A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 9) 2000.
F2005B02425 - RCTI 2000/10 - Securities and derivatives A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 10) 2000.
F2005B02424 - RCTI 2000/12 – Loyalty and customer reward programs A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 12) 2000.
F2005B02419 - RCTI 2000/13 (as amended)- Retail: selling agents New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 13) 2000
F2005B02415 - RCTI 2000/14 (as amended) - Retail: merchandisers A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 14) 2000
F2006B00662 - RCTI 2000/15 (as amended) - Caravan parks A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 15) 2000
F2005B02409 - RCTI 2000/16 (as amended) - Prize winning events A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 16) 2000
F2005B02408 - RCTI 2000/17 (as amended) - Recycling: precious metals A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 17) 2000
F2006B00083- RCTI 2000/20 (as amended) – Licensing A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 20) 2000
F2005B02399 - RCTI 2000/21 –Telephone information service provider A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 21) 2000.
F2006B00343 - RCTI 2000/22 ( as amended) - Labour services A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 22) 2000
F2006B00209 - RCTI 2000/23 (as amended) - Referral services A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 23) 2000
F2005B02068 - RCTI 2000/24 (as amended) - Access to premises (including coin operated machines) A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 24) 2000
F2005B02752 - RCTI 2000/28 – Worker’s compensation insurance premiums: Joint Coal Board of New south Wales A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 28) 2000.
F2006B11594 - RCTI 2000/30 – Insurance: reinsurance and retrocession A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 30) 2000.
F2005B02754 - RCTI 2000/31 – Authors and publishers A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 31) 2000.
F2006B11606 - RCTI 2000/32 – Commission agents and publishers A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 32) 2000.
F2005B02756 - RCTI 2000/34 – Friendly societies A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 34) 2000.
F2005B02757 - RCTI 2000/36 (as amended) - Mineral extraction A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 36) 2000
F2005B02758 - RCTI 2000/37 (as amended)– Renting A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 37) 2000
F2005B02772 - RCTI 2000/40 – Vending machine operator A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000.
F2005B02801 - RCTI 2000/48 – Determination A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 48) 2000.
F2006B11590 - RCTI 2000/50 – Education A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 50) 2000.
F2006B11603 - RCTI 2001/1 – Recipient created tax invoices A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2001
F2005B02811 - RCTI 2001/3 (as amended) - Fuel wholesalers A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 3) 2001
F2005B02814 - RCTI 2001/4 – Superannuation schemes A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 4) 2001
F2006B11588 - RCTI 2001/5 (as amended) - Transportation of photographic/imaging equipment A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 5) 2001
F2005B02818 - RCTI 2001/6 – Certain legal services A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 6) 2001
F2006B11607 - RCTI 2001/7 – Royalties for copyrighted material A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 7) 2001
F2006B00095 - RCTI 2003/1 – Refrigerant processors A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2003
F2005B02830 - RCTI 2003/3 (as amended)- Electronic Pharmacy Data A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 3) 2003

RCTI determinations that do not refer to an indemnity

F2006B11580 – CRCTI 2000/1

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2000

F2005B02437 - RCTI 2000/3 (as amended) - Centenary of Federation licensees

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 3) 2000.

F2005B03122 - RCTI 2000/5 – Franchisees Agreements

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 5) 2000.

F2005B02426 - RCTI 2000/9 – Direct selling

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 9) 2000.

F2005B02425 - RCTI 2000/10 - Securities and derivatives

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 10) 2000.

F2005B02424 - RCTI 2000/12 – Loyalty and customer reward programs

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 12) 2000.

F2005B02419 - RCTI 2000/13 (as amended)- Retail: selling agents

New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 13) 2000

F2005B02415 - RCTI 2000/14 (as amended) - Retail: merchandisers

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 14) 2000

F2006B00662 - RCTI 2000/15 (as amended) - Caravan parks

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 15) 2000

F2005B02409 - RCTI 2000/16 (as amended) - Prize winning events

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 16) 2000

F2005B02408 - RCTI 2000/17 (as amended) - Recycling: precious metals

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 17) 2000

F2006B00083- RCTI 2000/20 (as amended) – Licensing

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 20) 2000

F2005B02399 - RCTI 2000/21 –Telephone information service provider

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 21) 2000.

F2006B00343 - RCTI 2000/22 ( as amended) - Labour services

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 22) 2000

F2006B00209 - RCTI 2000/23 (as amended) - Referral services

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 23) 2000

F2005B02068 - RCTI 2000/24 (as amended) - Access to premises (including coin operated machines)

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 24) 2000

F2005B02752 - RCTI 2000/28 – Worker’s compensation insurance premiums: Joint Coal Board of New south Wales

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 28) 2000.

F2006B11594 - RCTI 2000/30 – Insurance: reinsurance and retrocession

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 30) 2000.

F2005B02754 - RCTI 2000/31 – Authors and publishers

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 31) 2000.

F2006B11606 - RCTI 2000/32 – Commission agents and publishers

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 32) 2000.

F2005B02756 - RCTI 2000/34 – Friendly societies

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 34) 2000.

F2005B02757 - RCTI 2000/36 (as amended) - Mineral extraction

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 36) 2000

F2005B02758 - RCTI 2000/37 (as amended)– Renting

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 37) 2000

F2005B02772 - RCTI 2000/40 – Vending machine operator

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 40) 2000.

F2005B02801 - RCTI 2000/48 – Determination

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 48) 2000.

F2006B11590 - RCTI 2000/50 – Education

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 50) 2000.

F2006B11603 - RCTI 2001/1 – Recipient created tax invoices

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2001

F2005B02811 - RCTI 2001/3 (as amended) - Fuel wholesalers

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 3) 2001

F2005B02814 - RCTI 2001/4 – Superannuation schemes

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 4) 2001

F2006B11588 - RCTI 2001/5 (as amended) - Transportation of photographic/imaging equipment

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 5) 2001

F2005B02818 - RCTI 2001/6 – Certain legal services

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 6) 2001

F2006B11607 - RCTI 2001/7 – Royalties for copyrighted material

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 7) 2001

F2006B00095 - RCTI 2003/1 – Refrigerant processors

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2003

F2005B02830 - RCTI 2003/3 (as amended)- Electronic Pharmacy Data

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 3) 2003

22. The amendments to the determinations in Table 2 need to refer to an indemnity.

Table 2: RCTI determinations that do refer an indemnity

RCTI determinations that do refer to an indemnity
F2006B11599 - RCTI 2000/1 - Horse racing clubs A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1A) 2000
F2006B11586 - RCTI 2000/2 (as amended) - Road transport A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 2) 2000.
F2006B00728 - RCTI 2000/4 (as amended) - Recycling: general A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 4) 2000.
F2006B01574 - RCTI 2000/6 – Research grants A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 6) 2000.
F2007B00005 - RCTI 2000/7 - Greyhound racing A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 7) 2000
F2005B02427 - RCTI 2000/8 (as amended) - Horse breeders' incentive scheme operators A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No.8) 2000
F2006B11592 - RCTI 2000/25 – Food and grocery manufacturers and retailers A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 25) 2000.
F2005B02067 - RCTI 2000/26 – Tourism: land product supplier A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 26) 2000.
F2005B02751 - RCTI 2000/27 (as amended) – Construction A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 27) 2000
F2005B02753 - RCTI 2000/29 (as amended) - Scrap metal dealers A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 29) 2000
F2005B02755 - RCTI 2000/33 – Financial planning services A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 33) 2000.
F2005B02790 - RCTI 2000/42 (as amended) - Fishing operations A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 42) 2000
F2005B02791 - RCTI 2000/43 (as amended) - Primary production labour services A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 43) 2000
F2005B02799 - RCTI 2000/44 – General insurance agents A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 44) 2000.
F2006B00362 - RCTI 2000/46 (as amended) - Vehicle dealers A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 46) 2000
F2007B00006 - RCTI 2000/49 – Financial supply by defined commission or fee based service A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 49) 2000.
F2006B11581 - RCTI 2000/63 (as amended) - Quarry Operators A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 63) 2000.
F2005B02802 - RCTI 2000/64 – General insurance sub‑agents A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 64) 2000.
F2005L01636 - RCTI 2005/1 – Reconditioned motor vehicle parts A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2005
F2006L03480 - RCTI 2006/1 – Demand side response A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2006
F2008L02399 = RCTI 2008/1 – Agricultural producers A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2008

RCTI determinations that do refer to an indemnity

F2006B11599 - RCTI 2000/1 - Horse racing clubs

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1A) 2000

F2006B11586 - RCTI 2000/2 (as amended) - Road transport

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 2) 2000.

F2006B00728 - RCTI 2000/4 (as amended) - Recycling: general

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 4) 2000.

F2006B01574 - RCTI 2000/6 – Research grants

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 6) 2000.

F2007B00005 - RCTI 2000/7 - Greyhound racing

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 7) 2000

F2005B02427 - RCTI 2000/8 (as amended) - Horse breeders' incentive scheme operators

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No.8) 2000

F2006B11592 - RCTI 2000/25 – Food and grocery manufacturers and retailers

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 25) 2000.

F2005B02067 - RCTI 2000/26 – Tourism: land product supplier

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 26) 2000.

F2005B02751 - RCTI 2000/27 (as amended) – Construction

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 27) 2000

F2005B02753 - RCTI 2000/29 (as amended) - Scrap metal dealers

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 29) 2000

F2005B02755 - RCTI 2000/33 – Financial planning services

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 33) 2000.

F2005B02790 - RCTI 2000/42 (as amended) - Fishing operations

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 42) 2000

F2005B02791 - RCTI 2000/43 (as amended) - Primary production labour services

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 43) 2000

F2005B02799 - RCTI 2000/44 – General insurance agents

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 44) 2000.

F2006B00362 - RCTI 2000/46 (as amended) - Vehicle dealers

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 46) 2000

F2007B00006 - RCTI 2000/49 – Financial supply by defined commission or fee based service

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 49) 2000.

F2006B11581 - RCTI 2000/63 (as amended) - Quarry Operators

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 63) 2000.

F2005B02802 - RCTI 2000/64 – General insurance sub‑agents

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 64) 2000.

F2005L01636 - RCTI 2005/1 – Reconditioned motor vehicle parts

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2005

F2006L03480 - RCTI 2006/1 – Demand side response

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2006

F2008L02399 = RCTI 2008/1 – Agricultural producers

A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2008

23. Clause 1 of the instrument numbered F2006B11607 on the Federal Register of Legislative Instruments is to be amended so that the determination may cited as A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 7) 2001 instead of A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 5) 2001.

24. Clause 1 of the instrument numbered F2006B11599 on the Federal Register of Legislative Instruments is to be amended so that the determination may cited as A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1A) 2000 instead of A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2000.

25. Clause 1 of the instrument numbered F2007B00005 on the Federal Register of Legislative Instruments is to be amended so that the determination may cited as A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 7) 2000 instead of A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 2) 2000.

26. Clause 1 of the instrument numbered F2008L02399 on the Federal Register of Legislative Instruments is to be amended so that the determination may cited as A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1) 2008 instead of A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 3) 2008.

Shane Reardon

Deputy Commissioner of Taxation

7 May 2009

Legislative references:

A New Tax System (Goods and Services Tax) Act 1999
Legislative Instruments Act 2003

Overview

The Recipient Created Tax Invoice – Embedded Agreement Amending Legislative Instrument 2009 was enacted to address the need for an alternative to the current requirement for a recipient to hold a written agreement with the supplier before issuing a recipient created tax invoice (RCTI). This Act was introduced to provide taxpayers with an option to embed the agreement details in the tax invoices they issue, thereby offering flexibility and easing record-keeping requirements. It also aims to make minor technical corrections regarding reference numbers in existing instruments. The instrument, which commenced on 1 July 2009, is made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 and is considered a legislative instrument for the purposes of the Legislative Instruments Act 2003. The policy objective of this Act is to reduce the compliance burden on taxpayers without altering the tax base, as the revenue impact is expected to be nil.

Scope and Application

The Recipient Created Tax Invoice – Embedded Agreement Amending Legislative Instrument 2009, issued under the A New Tax System (Goods and Services Tax) Act 1999, updates existing legislative instruments concerning recipient created tax invoices. This determination, effective from 1 July 2009, allows taxpayers an alternative to the existing requirement of holding a written agreement with the supplier before issuing a recipient created tax invoice (RCTI). Specifically, it permits the embedding of agreements within tax invoices, thereby providing flexibility and easing record-keeping requirements. This change applies to various industries and conduct specified in the existing RCTI instruments, including those in Tables 1 and 2 of the explanatory statement. The instrument does not apply retrospectively and is not expected to alter the tax base, aiming primarily to reduce the compliance burden on taxpayers. The amendment affects numerous sectors, including horse racing clubs, food and grocery manufacturers, and reconditioned motor vehicle parts, among others, as detailed in the tables of the explanatory statement.

Key Provisions

The primary operative sections of this legislative instrument are those that update existing legislative instruments concerning recipient created tax invoices (RCTI) and provide for an alternative to the requirement for recipients to hold a written agreement with the supplier before issuing a RCTI. Specifically, this includes the introduction of an embedded agreement as an alternative to a written agreement (section 7). This allows recipients to either maintain separate written agreements specifying the supplies to which each agreement relates and containing specific terms, or to embed these matters directly in the tax invoices they issue. This change provides flexibility and eases record-keeping requirements by eliminating the need to retain separate written agreements when the embedded agreement approach is adopted. Additionally, the instrument includes technical corrections regarding reference numbers in three instruments, ensuring that the correct reference numbers are reflected in the relevant tables (section 9). The obligations imposed by this Act on the parties it governs primarily involve updating the existing legislative instruments to reflect the new alternative of using an embedded agreement. Recipients of supplies now have the option to embed the agreement details directly into the tax invoice, rather than maintaining separate written agreements. This change is intended to reduce the compliance burden on taxpayers and simplify record-keeping processes. Furthermore, the instrument mandates technical corrections to reference numbers in certain determinations to ensure accuracy and consistency in the legislative framework. Any breach of the provisions set out in this instrument could potentially lead to civil or criminal consequences, although the specific offences, penalties, or consequences are not detailed in the explanatory statement. Given that this instrument aims to streamline processes and reduce compliance burdens without altering the tax base, the primary focus is on ensuring that taxpayers adhere to the updated requirements for issuing RCTIs. Non-compliance with these updated requirements could result in the RCTI being deemed invalid, which could have subsequent implications for both the recipient and the supplier in terms of tax obligations and record-keeping.

Area of Law: Taxation Law
Instrument: Legislative Instrument
Concepts: Commencement Provisions; Regulatory Standards; Compliance Obligations

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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