Issue 8 - Tax invoices for credit card sales

Nature of arrangement

When an airline ticket is purchased using a credit card, the travel agent sends the credit card number to the airline. It is the airline that processes the credit card transaction. The travel agent does not receive the credit payment and does not pass the money on to the airlines.

Issue

Can the travel agent issue a tax invoice or does the invoice need to issue from the airline?

For source of ATO view, refer to paragraphs 35 and 36 of GSTR 2000/17 - Goods and services tax: tax invoices.

Decision

Under subdivision 153-A, a tax invoice for a taxable supply made through an agent can be issued by the principal or the agent. However the principal and the agent must not both issue separate tax invoices relating to the same supply.

In this arrangement, the travel agent acts as the agent of the airline and may issue tax invoices provided the airline does not issue a tax invoice.

References

Goods and Services Tax Ruling GSTR 2000/17 - Goods and services tax: tax invoices deals with this issue.

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