RCTI 2016/9
AUSTRALIAN GOVERNMENT
This legislative instrument has been repealed by F2023L00785 - A New Tax System (Goods and Services Tax): Recipient Created Tax Invoice Determination 2023.This legislative instrument replaces and repeals A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No 12) 2000. (F2005B2424), registered on 20 October 2005.
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. 09) 2016 on Loyalty Program Participation.
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Tax Invoice Determination (No. 12) 2000 (the previous determination) - F2005B02424, registered on 20 October 2005, is repealed on commencement of this determination.
Determination (Who is covered under this determination)
4. This determination applies to a retail association or group that satisfies the requirements of this determination.
5. A retail association or group that 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 retail association or group that is the recipient of a taxable supply of a loyalty program participation may issue a tax invoice called a recipient created tax invoice (RCTI) for the taxable supply if the retail association or group:
- (a)
- establishes the value of the taxable supply after the supply is made; and
- (b)
- 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 must 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)
- must 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 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; 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:
customer reward programs means loyalty programs that provide incentives to members or customers which may be redeemed in the form of other special rewards, goods or services. Examples of such incentives and programs include but are not limited to "Plus Points" and "Fly Buys".
loyalty program participation means the participation in customer reward programs whereby the retailer will provide goods and services in exchange for points.
retail association or group means one or more entities that establish procedures, rules and systems that are adhered to by member entities in relation to customer reward programs in which those member entities participate.
11. Other expressions in this determination have the same meaning as in GST Act.
Dated 24 February 2016
Timothy Dyce
Deputy Commissioner of Taxation
Registration Number: F2016L00196
Registration Date: 1 March 2016
Related Explanatory Statements:
RCTI 2016/9 - Explanatory statement