ATO Interpretative Decision
ATO ID 2001/394
Goods and Services Tax
GST, tax invoices and the margin schemeFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a vendor of real property, required to issue a tax invoice under subsection 29-70(2) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it applies the margin scheme to the sale of the real property and the purchaser requests a tax invoice for the supply?
Decision
No, the entity is not required to issue a tax invoice under subsection 29-70(2) of the GST Act when it applies the margin scheme to the sale of the real property and the purchaser requests a tax invoice for the supply.
Facts
The entity is a vendor of real property. In this case, the entity sold a freehold interest in land by way of a taxable supply under section 9-5 of the GST Act. The entity applied the margin scheme to the sale of the real property. The purchaser of the real property is requesting that the entity supply a tax invoice for the supply.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 29-70(2) of the GST Act, where a recipient of a taxable supply requests a tax invoice, the supplier of the taxable supply must provide the tax invoice within 28 days of the recipient's request.
However, section 29-99 of the GST Act states that there are special rules relating to tax invoices and the sale of freehold interests in land in Division 75 of the GST Act.
Subsection 75-30(1) of the GST Act provides that an entity is not required to issue a tax invoice for a taxable supply that is solely a supply of real property under the margin scheme. Subsection 75-30(2) of the GST Act deems this provision to have effect despite the rules contained in section 29-70 of the GST Act.
In this case, the entity is making a sole supply of real property to which it applied the margin scheme. As such, the entity is not required to issue a tax invoice under subsection 29-70(2) of the GST Act due to the operation of subsection 75-30(1) of the GST Act.
Date of decision: 9 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
section 29-70
subsection 29-70(2)
section 29-99
Division 75
subsection 75-30(1)
subsection 75-30(2)
Related Public Rulings (including Determinations)
GSTR 2000/21
Other References:
Property and Construction Issues Log - Issue 15.1.10
Keywords
Goods & services tax
GST free
GST invoices
Tax invoices
GST property & construction
GST margin scheme
GST sale of real property
GST special rules
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 9 August 2001 | Original statement |
| 16 December 2005 | Archived |