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No ABN withholding - questions and answers

 
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20. My supplier claims a supply is not a business transaction for them, do I need to withhold if they do not quote an ABN?

You do not need to withhold when no ABN is quoted if:

  • the supplier is an individual (not in business as a partnership, company or trust)
     
  • the supply, for the supplier, is private or domestic, for example, when another business person sells your business a second-hand computer that has only been used at home by the supplier for private purposes and is not part of their trading stock or business equipment, and
     
  • the supply is made as part of a private recreational pursuit or hobby, for example, when you buy a picture to hang in your public business office from an artist who paints as a hobby.

In these cases, the supplier should provide you with a written statement. A form for this is available from our website or suppliers can create their own. It should contain:

  • the supplier's name and address
     
  • a statement that the supply is either
    • private or domestic
    • part of a hobby or private recreational pursuit and, therefore, the supplier doesn't need to quote an ABN and you do not need to withhold from your payment to them, and
  • the supplier's signature.

The statement can be on the invoice. If it is separate, you must be able to link it to your transaction records so that you can show why you did not withhold. If you suspect that the statement is false, you must withhold from the payment if the supplier does not quote their ABN.

Last Modified: Wednesday, 30 January 2013
 
Table of contents
Overview
1. What do I need to do when ordering supplies or services from another business?
2. If I buy supplies or services from a business that does not quote an ABN, what do I have to do?
3. How do I send the withheld amount to the ATO?
4. When do I send my activity statement to the ATO?
5. What do I need to do at the end of the financial year?
6. Are documents quoting an ABN, other than invoices, acceptable?
7. Do documents quoting an ABN have to be on paper?
8. If I order supplies from catalogues or other promotional material, is quoting an ABN from the promotional document acceptable?
9. If I order supplies by credit card over the phone, what do I have to do?
10. If I order supplies over the internet, what do I have to do?
11. If I order goods or services for my business from overseas suppliers, do they need an ABN?
12. I use regular suppliers, do I have to make sure that every invoice I receive from them has an ABN?
13. My company is part of a corporate group, do we have to get an ABN every time we pay another group member for supplies?
14. If I have a two-year lease agreement, is it sufficient for the lessor's ABN to be quoted on the lease agreement?
15. Am I responsible for ensuring that a supplier's quoted ABN is correct?
16. My supplier has provided a different ABN from one on a previous invoice, what should I do?
17. Do I have to get an ABN or withhold for small amounts?
18. Do I have to withhold when the supplier is a charity?
19. If a supply is for personal (not business) use, do I have to withhold if the supplier doesn't quote their ABN?
20. My supplier claims a supply is not a business transaction for them, do I need to withhold if they do not quote an ABN?
21. My supplier claims that payment for a supply is exempt from income tax, do I need to withhold if they do not quote an ABN?
22. My supplier claims that they are not carrying on an enterprise and do not need an ABN, do I have to withhold from payments to them?
23. Instead of paying money for a supply, I agree to provide the supplier with goods or services, does withholding for 'No ABN' still apply?
24. I often buy second-hand goods for use in my business and business premises, what do I need to do?
25. Is a body corporate required to withhold an amount from a payment (in the form of cash or discount on levies) to an owner for providing them services (for example, gardening services)?
26. A real estate agent passes on rent from the tenant to the owner, is the agent required to withhold an amount if the owner has not quoted their ABN?
27. Is an agent or the owner required to withhold an amount from a payment to another entity for the provision of services in connection with the owner's property, if the other entity has not quoted their ABN?
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