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  • 13.b. What type of documentation is required to reflect a third party payment?

    Division 134 of the GST Act requires a new form of adjustment note - Third Party Adjustment Note - for decreasing adjustments above $75 (the adjustment note threshold).

    A new legislative instrument titled A New Tax System (Goods and Services Tax) Third Party Adjustment Note Information Requirements Determination (No.1) 2010 has been created to inform manufacturers of the information they need to include in a third party adjustment note in order to properly account for their third party payment adjustments.

    The instrument also sets out the information that the Commissioner requires for a third party adjustment note. The requirements provide for appropriate documentation to be created, which will be held by manufacturers and customers to substantiate their third party adjustments.

    Note: There is a requirement for the manufacturer to issue a third party adjustment note if they make a third party payment in the same tax period they supplied the car to another entity and which the customer subsequently purchased.

      Last modified: 07 Jun 2012QC 16411