If the supplier does not provide an ABN and the total payment for goods and services is more than $75 (excluding GST) you generally withhold the top rate of tax from the payment and pay it to us.
If a supplier has applied for an ABN you can offer to hold payment until they have obtained and quoted their ABN. This is a matter for you and your supplier to work out. However you must not make full payment to the supplier on the understanding that an ABN will be quoted later.
As you cannot claim the GST input tax credit for payments you have withheld from, you should keep records of these transactions separate from other payment records.
There are some payments from suppliers that you don't have to withhold tax from, regardless of whether an ABN is provided or not. However you must have sufficient records to show the reason for not withholding.
Payment summary
If you withhold tax from a supplier's payment you must complete a payment summary and give it to them at the same time you pay them the net amount or as soon as possible after.
You can get PAYG payment summary – withholding where ABN not quoted forms from our online ordering service, or create your own as long as it contains the same content.
Keep a copy of the payment summary to help prepare your annual report for PAYG withholding where no ABN is quoted.
Paying a supplier with goods or services
If you agree to provide a supplier with goods or services instead of paying money, withholding will still apply if no ABN is provided.
See also:
- PAYG Payment summaries
- Annual reporting
- PAYG withholding where ABN not quoted - annual report
- TR 2002/9 Income tax: withholding from payments where recipient does not quote ABN
- Non-cash payments