ATO Interpretative Decision

ATO ID 2007/6 (Withdrawn)

Goods and Services Tax

• This ATO ID is withdrawn as it contains a view in respect of the former section 29-70 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) that does not apply in relation to taxable supplies for tax periods starting on or after 1 July 2010. The former section 29-70 was repealed and replaced with section 29-70 of the GST Act by the Tax Laws Amendment (2010 GST Administration Measures No. 2) Act 2010 with effect from 1 July 2010.
  Despite its withdrawal, this ATO ID continues to be a precedential view in relation to taxable supplies for tax periods starting before 1 July 2010.
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Is the unregistered agent that makes a supply on behalf of a supplier that is registered for goods and services tax (GST), issuing a tax invoice that complies with the requirements in subsection 29-70(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it includes its own name and Australian business number (ABN) on the invoice rather than the supplier's?

Decision

Yes, the unregistered agent is issuing a tax invoice that complies with the requirements in subsection 29-70(1) of the GST Act when the invoice contains:

•

the agent's name and ABN (instead of the supplier's name and ABN)

•

the price for the supply

•

the words 'tax invoice' stated prominently

•

the date of issue of the tax invoice

•

the name of the recipient

•

the address or ABN of the recipient

•

a brief description of each thing supplied, including for each description the quantity of goods or extent of services supplied, and

•

the total amount of GST payable.

There is no requirement that the agent be registered or required to be registered for GST.

Facts

The agent is not registered for GST or required to be registered for GST. The agent has an ABN, and acts as an agent for a supplier that is registered for GST. The supplier is not a GST branch.

The agent is not a resident agent acting for a non-resident entity.

The agent makes a supply to a recipient on behalf of the supplier. This supply is a taxable supply under section 9-5 of the GST Act. The total amount, including GST, payable for the supply is $1,000 or more.

The agent issues the recipient of the supply with an invoice that contains:

•

the price for the supply

•

the words 'tax invoice' stated prominently

•

the date of issue of the tax invoice

•

the name of the recipient

•

the address or ABN of the recipient

•

a brief description of each thing supplied, including for each description the quantity of goods or extent of services supplied, and

•

the total amount of GST payable.

However, instead of setting out the supplier's name and ABN where relevant, the invoice sets out the agent's name and ABN.

The invoice is not a recipient created tax invoice.

Reasons for Decision

Under subsection 29-70(1) of the GST Act, a tax invoice for a taxable supply must:

(a)

be issued by the supplier, unless it is a recipient created tax invoice (in which case it must be issued by the recipient)

(b)

set out the ABN of the entity that issues it

(c)

set out the price for the supply

(d)

contain such other information as the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) specify, and

(e)

be in the approved form.

Subregulation 29-70.01(2) of the GST Regulations specifies the additional information that a tax invoice must contain where the total amount, including the GST payable for the supply to which the tax invoice relates is $1,000 or more. These information requirements are:

(a)

the words 'tax invoice' stated prominently

(b)

the date of issue of the tax invoice

(c)

the name of the supplier

(d)

the name of the recipient

(e)

the address or the ABN of the recipient

(f)

a brief description of each thing supplied, and

(g)

for each description, the quantity of the goods or the extent of the services supplied.

Subregulation 29-70.01(4) of the GST Regulations further specifies that when the tax invoice is for taxable supplies only, and the amount of GST payable is exactly one-eleventh of the total price, the tax invoice must show the GST amount separately or provide a statement to the effect that the total amount payable includes GST.

The agent is not the supplier. The agent issues an invoice that relates to a taxable supply where the total amount, including GST, payable for the supply is $1,000 or more. This invoice contains:

•

the price for the supply

•

the words 'tax invoice' stated prominently

•

the date of issue of the tax invoice

•

the name of the recipient

•

the address or ABN of the recipient

•

a brief description of each thing supplied, including for each description the quantity of goods or extent of services supplied, and

•

the total amount of GST payable.

However, instead of setting out the supplier's name and ABN where relevant, the invoice sets out the agent's name and ABN.

In the absence of any special rules, the invoice cannot be a tax invoice because it does not comply with the requirements in subsection 29-70(1) of the GST Act. However, Division 153 of the GST Act contains special rules about tax invoices and agents.

Paragraph 29-70(1)(a) of the GST Act requires that the supplier issues a tax invoice. Subsection 153-15(1) of the GST Act provides that if a supplier makes a taxable supply through an agent, the obligation to issue a tax invoice relating to the supply is complied with if either the supplier or its agent gives the recipient a tax invoice within 28 days after a request is made. Therefore, the tax invoice that the agent issues satisfies the requirement in paragraph 29-70(1)(a) of the GST Act.

Paragraph 65 of Goods and Services Tax Ruling GSTR 2000/37 provides that where an agent issues a tax invoice, the document is a tax invoice and meets the requirements of subsection 29-70(1) of the GST Act if it sets out the agent's name and ABN as the supplier and issuer instead of the principal's name and ABN.

Neither subsection 29-70(1) of the GST Act or section 153-15 of the GST Act require the agent to be registered for GST in order to issue a valid tax invoice.

Accordingly, the agent is issuing a tax invoice that complies with the requirements in subsection 29-70(1) of the GST Act when it is not registered for GST and the tax invoice contains:

•

the agent's name and ABN (instead of the supplier's name and ABN)

•

the price for the supply

•

the words 'tax invoice' stated prominently

•

the date of issue of the tax invoice

•

the name of the recipient

•

the address or ABN of the recipient

•

a brief description of each thing supplied, including for each description the quantity of goods or extent of services supplied, and

•

the total amount of GST payable.

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   subsection 29-70(1)
   paragraph 29-70(1)(a)
   Division 153
   section 153-15
   subsection 153-15(1)

Related Public Rulings (including Determinations)
Goods and Services Tax Ruling GSTR 2000/37

Keywords
Acquisitions and supplies by Agents
Goods and services tax
GST invoices
GST special rules
Tax invoices

Business Line:  Indirect Tax

Date of publication:  12 January 2007

ISSN: 1445-2782