RCTI 2016/21


AUSTRALIAN GOVERNMENT

This legislative instrument replaces and repeals A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No 46) 2000. (F2006B00362), registered on 15 February 2006.

A New Tax System (Goods and Services Tax) Act 1999

I, Timothy Dyce, Deputy Commissioner of Taxation, make this determination under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Name of determination

1. This determination is the Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 21) 2016 for Vehicle Dealers.

Commencement

2. This determination commences on the day after registration.

Repeal of previous determination

3. A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 46) 2000 (the previous determination) - F2006B00362, registered on 15 February 2006, is repealed on the commencement of this determination.

Determination (Who is covered by this determination)

4. This determination applies to a vehicle dealer who satisfies the requirements of this determination.

5. A vehicle dealer who satisfied the requirements of the previous determination will satisfy the requirements of this determination.

Classes of tax invoices that may be issued by the recipient of a taxable supply under this determination

6. A vehicle dealer who is the recipient of a taxable supply of a vehicle trade-in, may issue a tax invoice called a recipient created tax invoice (RCTI) for the taxable supply if the vehicle dealer:

(a)
establishes the value of the taxable supply;
(b)
provides all documentation required to affect the transfer of the vehicle; and
(c)
satisfies the requirements set out in Clause 7.

Requirements that must be satisfied by the recipient under this determination

7. A recipient must satisfy the following requirements when issuing a RCTI under this determination:

(a)
be registered for GST;
(b)
set out the ABN of the supplier on the RCTI;
(c)
issue the original or a copy of the RCTI to the supplier within 28 days of making, or determining, the value of a taxable supply and retain the original or the copy;
(d)
the recipient must issue the original or a copy of an adjustment note to the supplier within 28 days of any adjustment and must retain the original or the copy;
(e)
reasonably comply with its obligations under the taxation laws; and
(f)
have either a written agreement with the supplier that meets the requirements of Clause 8, or a written agreement embedded in the RCTI that meets the requirements of Clause 9.

Requirements of a written agreement with the supplier

8. The written agreement the recipient has with the supplier must:

(a)
specify the supplies to which it relates;
(b)
be current and effective when the RCTI is issued; and
(c)
have the following conditions:

(i)
the recipient can issue RCTIs in respect of the supplies;
(ii)
the supplier will not issue tax invoices in respect of the supplies;
(iii)
the supplier acknowledges that it is registered for GST when it enters into the agreement and that it will notify the recipient if it ceases to be registered for GST; and
(iv)
the recipient acknowledges that it is registered for GST when it enters into the agreement and that it will notify the supplier if it ceases to be registered for GST.

Requirements of a written agreement embedded in the RCTI

9. The embedded agreement in the RCTI that the recipient has with the supplier must contain the following statement:


The recipient and the supplier declare that this agreement applies to supplies to which this tax invoice relates. The recipient can issue tax invoices in respect of these supplies.The supplier will not issue tax invoices in respect of these supplies.The supplier acknowledges that it is registered for GST and that it will notify the recipient if it ceases to be registered. The recipient acknowledges that it is registered for GST and that it will notify the supplier if it ceases to be registered for GST. Acceptance of this RCTI constitutes acceptance of the terms of this written agreement.

Both parties to this supply agree that they are parties to a RCTI agreement. The supplier must notify the recipient within 21 days of receiving this document if the supplier does not wish to accept the proposed agreement.

Definitions

10. The following expressions are defined for the purposes of this determination:


vehicle dealer means an entity that is in the business of supplying vehicles.

vehicle means a car, motorcycle, commercial vehicle, caravan or farm machinery.

11. Other expressions in this determination have the same meaning as in the GST Act.



Dated 24 February 2016

Timothy Dyce
Deputy Commissioner of Taxation


Registration Number: F2016L00168

Registration Date: 29 February 2016

Related Explanatory Statements:

RCTI 2016/21 - Explanatory statement