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  • The no-ABN withholding rule

    If a seller cannot quote an ABN to you before you make any payment for the supply, you can still buy scrap from them using the no-ABN withholding rule.

    You apply the no-ABN withholding rule by withholding an amount at the top marginal rate of tax (47% from 1 July 2017) from the total payment and send the withheld amount to us.

    You report the amount withheld to us in your next business activity statement and complete a payment summary form and give it to the seller. The seller will use this form to claim the withheld amount as a credit in their next income tax return.

    The no-ABN withholding rule does not apply if the seller completes a Statement by a supplier declaring the supply is not made in the course of carrying on a business or where the sale amount is $82.50 or less.

    The no-ABN withholding rule is not an alternative to having an ABN. Having a valid ABN is the easiest way to make business-to-business sale transactions.

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      Last modified: 30 Jun 2017QC 17300