Note: For periods from 1 April 2017, the VRC worksheet is no longer required to be completed.
The interim VRC arrangement only applied to VRC transactions entered into between 1 January 2017 – 31 March 2017.
During this time, businesses that entered into these voluntary arrangements were required to complete and submit a worksheet to report and reconcile these transactions, in addition to the BAS.
We have been able to give effect to the voluntary GST reverse charge agreements between buyers and sellers when the following has occurred.
- The buyer has provided us with accurate transaction information, their sellers’ ABNs and appropriate authorisation to transfer available credits on the buyer’s ATO account into the ATO accounts of the sellers.
- The buyer has ensured that they have enough credit in their ATO account for us to facilitate the transfers.
As part of the VRC process, it is important that both parties are up to date with their tax affairs. We are unable to transfer credits between parties when the relevant conditions are not met.
Use the VRC worksheet (PDF, 1.79MB)This link will download a file for the periods of 1 January 2017 to 31 March 2017.
The VRC does not apply from 1 April 2017 and the worksheet is not required for periods after that date.
We are not able to make a transfer from the purchaser's account when the purchaser:
- has not paid the required amount under the VRC
- has a debt owing to us
- enters into liquidation or becomes insolvent.
When we cannot make a transfer from the purchaser's account.
- We cannot enforce the commercial agreement between the purchaser and seller.
- The seller remains liable for any GST payable on the supply to the purchaser.
- Sales and GST payable amounts reported on the BAS are not revised to reduce the seller's sales and GST payable amount for any credits for VRC transactions not transferred from the purchaser.
If you, as a seller, have not received your GST credit from the buyer you should refer to the terms of your agreement and consider seeking independent advice regarding the options available to you.
If you are uncertain if a transfer under the VRC has been made to your account from the buyer, call 13 28 66 to enquire.
- ATOtvExternal Link – slides from our July 2017 webinar.