• Tax invoices

    Is the Commissioner's discretion, in relation to treating a document that is not a tax invoice as a tax invoice, automatically exercised following every MOG change?

    The Commissioner has the discretion to treat a document as a tax invoice even when it does not meet all the requirements of a tax invoice.

    When a MOG change occurs, an affected government organisation can ask us to exercise the discretion. In exercising the discretion, we generally specify in the notice of decision a three month period during which certain documents will be treated as tax invoices.

    These documents include:

    • tax invoices issued to the losing agency for supplies received by the gaining agency
    • tax invoices issued in the identity of the losing agency for supplies made by the gaining agency
    • RCTIs issued in the identity of the losing agency for supplies received by the gaining agency.

    These documents must comply with the other GST requirements for tax invoices.

    These discretions are not automatically exercised following a MOG change unless the jurisdiction that the gaining agency belongs to has already obtained from us a notice of decision to exercise the discretion. Otherwise, the gaining agency should follow the procedures within their jurisdiction in relation to the requirement to request the Commissioner to exercise the discretion.

    Under what circumstances will we allow an n affected government organisation, in a MOG change, more time to treat certain documents that are not tax invoices as tax invoices?

    The three month period specified in the notice of decision about treating certain documents as tax invoices usually commences on the date specified in the AAO or proclamation for the MOG changes to take place. Extensions of this time are considered on a case by case basis. Government organisations should contact us as soon as possible if they believe it may take longer than three months for them to have their tax invoices compliant.

    Find out more

    For more information on ATO discretion to treat documents as tax invoices, refer to Practice Statement Law Administration PS LA 2004/11External Link The Commissioner's discretions to treat a particular document as a tax invoice or adjustment note (as at 1 July 2000).

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    What treatment should be given to RCTIs issued under a written RCTI agreement with an abolished government organisation?

    A MOG change usually takes immediate effect which can make it difficult for either the supplier or recipient to an RCTI agreement to meet the requirements for issuing an RCTI.

    In these circumstances, an abolished government organisation will no longer be the supplier or recipient of a supply referred to in an existing RCTI agreement. New RCTI agreements must be entered into by the gaining agency and other suppliers or recipients as soon as possible.

    If an abolished government organisation was the recipient in an RCTI agreement, the new government organisation will need to request that the Commissioner exercise his discretion to treat a document issued under the existing RCTI agreement as a RCTI. This will enable the new government organisation to claim GST credits on the supply it receives.

    Find out more

    For more information about RCTIs, refer to:

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    Does the notice of decision, to treat a document that is not a tax invoice as a tax invoice, apply to a RCTI?

    Suppliers or recipients to RCTI agreements may need to enter into new agreements following MOG changes.

    We have the discretion to treat a document as a tax invoice even though the document does not meet all the requirements of a tax invoice.

    When a MOG change occurs, an affected government organisation can ask us to exercise the discretion. In exercising the discretion, we generally specify in the notice of decision a three month period during which certain documents will be treated as tax invoices.

    The notice of decision in relation to treating certain documents as tax invoices will also apply to RCTIs issued in the identity of a losing agency for supplies received by a gaining agency.

    That is, a gaining agency will only be required to make one request to the ATO to exercise the discretion to treat specified documents as tax invoices.

    Does a notice of decision, issued to one jurisdiction in relation to treating a document (that is not a tax invoice) as a tax invoice, under a MOG change, extend to another jurisdiction?

    A notice of decision issued to one jurisdiction about treating a document (that is not a tax invoice) as a tax invoice under a MOG change specifies the relevant legislation governing the MOG change.

    Therefore, the notice cannot treat documents that are generated in relation to MOG changes in another jurisdiction under different legislations and which are not tax invoices, as tax invoices.

      Last modified: 03 Mar 2014QC 25055