Changes to GST and other indirect tax laws

Recent changes to GST and other indirect tax laws have affected fuel tax credits in several ways.

General interest charge on overpayments

On 1 April 2010, the law about the repayment of overpaid refunds changed and this affects fuel tax credits. This applies even if you are not registered or required to be registered for GST.

If your claim for fuel tax credits starts on or after 1 April 2010 and you receive an overpayment on a fuel tax credit, you should treat the overpaid amount as tax that became due and payable from the date of the overpayment. Also, if you claim more fuel tax credits than you are eligible for, you may be liable for a penalty and a general interest charge, which will be worked out from the date of the overpayment.

For more information, refer to Changes to recover overpaid refunds.

Time limit to claim

From 1 July 2010, you must claim any outstanding fuel tax credits within four years from the end of the tax period in which you would have generally attributed the fuel tax credits to. You can claim the fuel tax credits in your current BAS rather than revising an earlier BAS that corresponds to the date of the tax invoice, as long as you do this within the four year time limit.

For more information, refer to Changes to time limit on entitlements to ITCs and fuel tax credits.

Changes to tax invoices

From 1 July 2010, the amount of information required on tax invoices has been relaxed. However, if you are issuing tax invoices in accordance with the previous law, you will not need to change your accounting system or software.

If you are claiming fuel tax credits, this change means that documents containing minor errors may still be treated as tax invoices. This reduces the costs of additional follow up with suppliers to substantiate your claims.

For more information, refer to: Changes to tax invoices and recipient created tax invoices - frequently asked questions Valid Tax Invoices and GST credits Changes to tax invoices and recipient created tax invoices - overview.

GST groups and GST joint ventures

From 1 July 2010:

• entities can self-assess their eligibility to form and make changes to a GST group or GST joint venture at any time during a tax period
• entities can enter into indirect tax sharing agreements to provide additional certainty in relation to their indirect tax law liabilities.

For more information, refer to GST groups and GST joint ventures - overview.

More information

We have updated our industry issues registers to reflect the law changes. To access the latest versions, go to GST essentials -'More' - then select 'Other industries'. For more information: phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday write to us at Australian Taxation Office GPO Box 3001 PENRITH  NSW  2740