ATO Interpretative Decision
ATO ID 2010/146
Goods and Services Tax
GST and tax invoices issued by another entity on behalf of a supplierFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Does Entity A, a supplier of services, issue a tax invoice for the purposes of paragraph 29-70(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) where Entity B, on behalf of Entity A, prepares and issues a single invoice for the taxable supplies that each entity makes separately to the same customers?
Decision
Yes. Entity A issues a tax invoice for the purposes of paragraph 29-70(1)(a) of the GST Act in the circumstance described.
Facts
Entity A and Entity B make separate taxable supplies of certain services to the same customers. Both entities are registered for goods and services tax (GST).
Entity A and Entity B enter into a written agreement for the preparation and issuance of invoices. Under this agreement, Entity B prepares and issues a single invoice on behalf of Entity A and for itself for the taxable supplies that each entity separately makes to the same customer. Entity B does not charge a fee for preparing and issuing the invoices.
The invoice shows the identity and Australian Business Number (ABN) of both entities. The invoice satisfies the requirements of a tax invoice outlined in paragraphs 29-70(1)(b), 29-70(1)(c), and 29-70(1)(d) of the GST Act. The invoice is not a recipient created tax invoice as the customer does not create or issue it.
Entity A does not issue its own invoice in respect of the taxable supplies that it makes and that are invoiced along with the taxable supplies made by Entity B.
Reasons for Decision
Subsection 29-70(1) of the GST Act provides that a document is a tax invoice if it meets several requirements. Paragraph 29-70(1)(a) of the GST Act provides that one of these requirements is that the document must be issued by the supplier, unless it is a recipient created tax invoice.
The term 'supplier' is not defined in the GST Act. However, in the context of section 9-5 of the GST Act, an entity that makes a taxable supply is treated as the supplier. As Entity A and Entity B both make separate taxable supplies, they are the suppliers for the purposes of paragraph 29-70(1)(a) of the GST Act.
However, as it is Entity B that prepares and issues the invoice, it needs to be determined whether the invoice is also 'issued' by Entity A.
Under the written agreement, Entity B physically prepares and issues the invoice on behalf of Entity A. Entity B does not charge a fee to Entity A for this service. This written agreement does not alter Entity A's relevant obligations under the GST Act.
Further, Entity A's identity and ABN appear on each invoice issued by Entity B. For the purposes of determining whether Entity A has also 'issued' the invoice, it is not relevant that Entity B's identity, ABN and details of Entity B's taxable supplies are also shown on the invoice.
By entering the written agreement with Entity B and because Entity A's relevant details are on the invoice, Entity A also issues the invoice. As the invoice satisfies the other requirements of a tax invoice, Entity A issues a tax invoice for the purposes of paragraph 29-70(1)(a) of the GST Act.
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
subsection 29-70(1)
paragraph 29-70(1)(a)
paragraph 29-70(1)(b)
paragraph 29-70(1)(c)
paragraph 29-70(1)(d)
paragraph 29-75(1)(a)
Related Public Rulings (including Determinations)
Goods and Services Tax Ruling GSTR 2000/17
ATO ID 2006/110
Keywords
Goods and services tax
GST supplies & acquisitions
Taxable supply
GST invoices
Tax invoices
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 1 July 2010 | Original statement |
| 22 April 2013 | Original statement |