Issue 18 - Itineraries and ticketing

In some situations, a tourism industry operator may issue a document (such as an itinerary) before it is certain that they will make a supply because the document is merely an offer.

In these situations, there is no supply until the recipient accepts the offer. At a later point in time, the customer accepts the offer by making payment.

Issue

Are itineraries considered to be tax invoices?

Decision

A tax invoice is a document that complies with the information requirements set out in subsection 29-70(1) of the GST Act.

A supplier may issue to a prospective recipient a document that offers to make a supply. This may, for example include subscriptions to trade magazines, membership of trade or professional associations, or offers to attend training courses, seminars or conferences. When they issue the document, the supplier will not know whether the recipient will accept the offer, and therefore whether a supply will proceed. Because of these uncertainties, the offer document cannot be a tax invoice when it is issued.

However, the Commissioner has made a determination under subsection 29-10(3) of the GST Act, to cover particular situations concerning offer documents and renewal notices. The determination has effect from 1 July 2010. (See A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Offer Documents and Renewal Notices) Legislative Instrument 2013).

The determination is intended to save suppliers from having to issue another document if the offer is accepted. Accordingly, where a recipient or their agent holds an offer document, the determination allows the input tax credit for a creditable acquisition to be attributed at the time the recipient gives their GST return for the tax period to the Commissioner in certain circumstances.

The determination does not apply to offers made by a supplier to a single recipient, such as a 'quote' given by a professional or tradesperson.

References

GSTR 2013/1 Goods and services tax: tax invoices

A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Offer Documents and Renewal Notices) Legislative Instrument 2013

Return to Tourism and Hospitality Industry Partnership - issues register.