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) 2010External Link 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.