ATO Interpretative Decision

ATO ID 2006/110 (Withdrawn)

Goods and Services Tax

GST and tax invoices issued by another entity on behalf of a supplier
FOI status: may be released

This ATO ID is withdrawn with effect from 1 July 2010 due to legislative changes to Subdivision 29-C of the A New Tax System (Goods and Services Tax) Act 1999 that apply to tax periods starting on or after 1 July 2010. Despite its withdrawal, this ATO ID continues to be the ATO precedential view prior to 1 July 2010. See ATO ID 2010/146, which reflects the view in respect of the rewritten Subdivision for tax periods starting on or after 1 July 2010.

This document has changed over time. View its history.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, also 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 also issues a tax invoice for the purposes of paragraph 29-70(1)(a) of the GST Act.

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 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 name and Australian business number (ABN) of both entities. The invoice satisfies the requirements of paragraphs 29-70(1)(b), 29-70(1)(c), 29-70(1)(d) and 29-70(1)(e) of the GST Act and is not a recipient created tax invoice.

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 lists the requirements of a tax invoice. Paragraph 29-70(1)(a) of the GST Act provides that a tax invoice for a taxable supply 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.

However, as Entity B prepares and issues the invoice, it needs to be determined whether the tax 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.

The written agreement does not alter Entity A's relevant obligations under the GST Act. Further, Entity A's name 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 name, 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 a tax invoice for the purposes of paragraph 29-70(1)(a) of the GST Act.

Note 1: Similarly, in the above circumstances, Entity A will also be treated as issuing an adjustment note for the purposes of paragraph 29-75(1)(a) of the GST Act.

Note 2: Goods and Services Tax Ruling GSTR 2000/17 Goods and services tax: tax invoices explains the requirements for a 'tax invoice'.

Note 3: Both Entity A and Entity B have a GST liability for their respective taxable supplies made to customers that are invoiced by Entity B.

Date of decision: 20 July 2005

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 29-70(1)(e)
   paragraph 29-75(1)(a)

Related Public Rulings (including Determinations)
Goods and Services Tax Ruling GSTR 2000/17

Keywords
Goods and services tax
GST supplies & acquisitions
Taxable supply
GST invoices
Tax invoices

Business Line: GST

Date of publication: 28 April 2006

ISSN: 1445-2782

history

	Date:	Version:
	20 July 2005	Original statement
You are here	13 August 2010	Archived

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