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For GST registered businesses using recipient created tax invoice (RCTI) agreements.
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When we refer to:
- sales, we mean the GST term supplies
- seller, we are referring to the business or entity that makes the sale of a good or service or the GST term supplier
- purchaser, we are referring to the business or entity that purchases goods or services or the GST term recipient.
In certain situations the purchaser is able to issue a tax invoice to the seller, once a price has been worked out. This kind of tax invoice is referred to as a recipient created tax invoice (RCTI).
An RCTI is a tax invoice that is issued by the purchaser of the goods and/or services rather than the seller. RCTIs can only be issued by a purchaser if:
- the purchaser and the seller are both registered for GST
- the sales for which the purchaser can issue a RCTI are agreed to in writing by the purchaser and the seller either in a separate written agreement specifying the sales to which each agreement relates or embedding this information or specific terms, as outlined in the legislative instrument, in the tax invoices they issue
- the agreement is current and effective when the RCTI is issued
- the goods or services being sold under the agreement are of the type that we have determined can be invoiced using RCTIs.
Not all purchasers are able to issue RCTIs. We have approved a number of situations, and industry types, where sales can be invoiced using RCTIs. These can be viewed at Legislative determinations.
Industry associations, whose members are GST registered purchasers of taxable sales, and other GST registered purchasers can ask us to determine other situations where sales can be invoiced using RCTIs.
To do this you can:
For an RCTI to be valid, both the seller and the purchaser must meet a number of conditions, including:
- the seller and the purchaser must be registered for GST
- the purchaser must include the ABN of the seller on the RCTI
- the purchaser must issue the RCTI (or a copy) to the seller within 28 days of the sale or within 28 days of establishing the price
- the purchaser must keep the RCTI (or a copy)
- the purchaser must issue an adjustment note (or a copy) to the seller within 28 days of any adjustment occurring
- the purchaser must reasonably comply with their general tax obligations, such as being up to date with lodgment of activity statements and payments
- the purchaser must not issue an RCTI on or after the date on which either the purchaser or seller has ceased to comply with any of the requirements above
- the sales for which the purchaser can issue an RCTI are agreed to in writing by the purchaser and the seller either in a separate written agreement specifying the supplies to which each agreement relates or embedding this information or specific terms in the tax invoices they issue.
The written agreement between the seller and purchaser must meet all of the following requirements - it must:
- be current and effective whenever an RCTI is issued
- list the type of goods or services that it relates to
- state that the purchaser can issue tax invoices for the supplies
- state that the seller will not issue tax invoices for the supplies
- state that both the seller and the purchaser are registered for GST at the time they enter into the agreement and, if either ceases to be registered for GST, they will notify each other.
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If you use electronic accounting software, it may automatically generate a tax invoice for sales. Where your sale is covered by an RCTI agreement, you will need to ensure that you do not issue that tax invoice to the purchaser. This is so that the purchaser does not incorrectly claim a GST credit on both their RCTI and your tax invoice.
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In addition to the requirement for a written agreement, to be valid, an RCTI must contain enough information to enable the following to be clearly identified:
- that the document is intended to be an RCTI
- the identity and ABN of the seller
- the identity or ABN of the purchaser
- what is supplied, including the quantity (if applicable) and the price
- the extent to which each sale is a taxable sale
- the date of issue of the document
- the amount of GST (if any) payable for each sale
- if GST is payable for any sale - that the GST is payable by the seller.
We have developed a form you can use as a template for creating RCTI's. Alternatively, you can use the form as a reference of the information you need when creating your own RTCI. You can download a version of Recipient created tax invoice (NAT 73657, PDF, 60KB) in Portable Document Format (PDF).
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For more information about RCTIs, refer to:
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For copies of these publications or for other information:
- phone us on 13 28 66
- write to us at
If you do not speak English well and need help from us, phone the Translating and Interpreting Service on 13 14 50.
If you are deaf, or have a hearing or speech impairment, phone us through the National Relay Service (NRS) on the numbers listed below:
- TTY users, phone 13 36 77 and ask for the ATO number you need
- Speak and Listen (speech-to-speech relay) users, phone 1300 555 727 and ask for the ATO number you need
- internet relay users, connect to the NRS on www.relayservice.com.au and ask for the ATO number you need.
Last Modified: Wednesday, 11 January 2012