RCTI 2017/8
COMMONWEALTH OF AUSTRALIA
This legislative instrument has been repealed by F2023L00785 - A New Tax System (Goods and Services Tax): Recipient Created Tax Invoice Determination 2023.This legislative instrument replaces F2006B11581
A New Tax System (Goods and Services Tax) Act 1999
I, Timothy Dyce, Deputy Commissioner of Taxation, make this determination under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).1. Name of determination
This determination is the Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Quarry Operators.
2. Commencement
This determination commences on 1 April 2017.
3. Repeal of previous determination
This determination replaces determination A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 63) 2000 - F2006B11581 (previous determination), registered on 15 November 2006. The previous determination is repealed from 1 April 2017.
4. Application
This determination applies to a quarry operator that satisfies the requirements of this determination.
This determination is substantially the same as the previous determination that it replaces. An entity that satisfied the requirements of the previous determination and that is a quarry operator will generally satisfy the requirements of this determination.
5. Class of tax invoices that may be issued by the recipient of a taxable supply under this determination
A quarry operator , who is the recipient of a taxable supply, may issue a tax invoice that belongs to a class of tax invoices, for a taxable supply of the transport of the quarry products where they:
- (a)
- establish the value of the supply rather than the supplier; and
- (b)
- satisfy the requirements set out in paragraph 6.
6. Requirements that must be satisfied by a recipient of a taxable supply under this determination
A recipient must satisfy the following requirements:
- (a)
- the supplier and the recipient must be registered for GST when the tax invoice is issued
- (b)
- the recipient must set out in the tax invoice the ABN of the supplier
- (c)
- the recipient must issue the original or a copy of the tax invoice to the supplier within 28 days of making, or determining the value of a taxable supply and must retain the original or the copy
- (d)
- if there is an adjustment the recipient must issue the original or a copy of an adjustment note to the supplier within 28 days of the adjustment and must retain the original or the copy
- (e)
- the recipient must reasonably comply with its obligations under the taxation laws, and
- (f)
- the recipient must have either a written agreement with the supplier that meets the requirements of paragraph 7, or a written agreement embedded in the Recipient Created Tax Invoice (RCTI) that meets the requirements of paragraph 8.
7. Requirements of a written agreement with the supplier other than a written agreement embedded in the RCTI
The written agreement the recipient has with the supplier must:
- (a)
- specify the supplies to which it relates
- (b)
- be current and effective when the RCTI is issued, and
- (c)
- contain the following conditions:
- (i)
- the recipient can issue RCTIs in respect of the supplies
- (ii)
- the supplier will not issue tax invoices in respect of the supplies
- (iii)
- the supplier acknowledges that it is registered for GST when it enters into the agreement and that it will notify the recipient if it ceases to be registered for GST, and
- (iv)
- the recipient acknowledges that it is registered for GST when it enters into the agreement and that it will notify the supplier if it ceases to be registered for GST.
8. Requirements of a written agreement embedded in the RCTI
The agreement that the recipient has with the supplier that is embedded in the RCTI must contain the following statement:
The recipient and the supplier declare that this agreement applies to supplies to which this tax invoice relates. The recipient can issue tax invoices in respect of these supplies. The supplier will not issue tax invoices in respect of these supplies. The supplier acknowledges that it is registered for GST and that it will notify the recipient if it ceases to be registered. The recipient acknowledges that it is registered for GST and that it will notify the supplier if it ceases to be registered for GST. Acceptance of this RCTI constitutes acceptance of the terms of this written agreement.
Both parties to this supply agree that they are parties to an RCTI agreement. The supplier agrees to notify the recipient if the supplier does not wish to accept the proposed agreement within 21 days of receiving this document.
9. Definitions
The following expressions is defined for the purpose of this determination:
quarry operator means a business that extracts blue metal stone and other products from the ground, processes the products, loads the products on to vehicles and conveys the products to the sites of its clients.
Other expressions in this determination have the same meaning as in the GST Act.
Dated: 11 April 2017
Signed by Timothy Dyce
Deputy Commissioner of Taxation
Registration Number: F2017L00421
Registration Date: 12 April 2017
Related Explanatory Statements:
RCTI 2017/8 - Explanatory Statement