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ATO Interpretative Decision

ATO ID 2001/245 (Withdrawn)

Goods and Services Tax

GST and tax invoice for multiple recipients
FOI status: may be released
  • This ATO ID is withdrawn with effect from 1 July 2010 due to legislative changes to Subdivision 29-C of the A New Tax System (Goods and Services Tax) Act 1999 that apply to tax periods starting on or after 1 July 2010. Despite its withdrawal, this ATO ID continues to be the ATO precedential view prior to 1 July 2010. See ATO ID 2010/144, which reflects the view in respect of the rewritten Subdivision for tax periods starting on or after 1 July 2010.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplier of farm machinery, issuing a tax invoice that meets the requirements under subsection 29-70(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it issues a single tax invoice for a single supply made jointly to more than one recipient?

Decision

Yes, the entity is issuing a invoice that meets the requirements under subsection 29-70(1) of the GST Act, when it issues a single tax invoice for a single supply made out jointly to more than one recipient.

Facts

The entity is a farm machinery supplier. The entity supplies a tractor to a father and son. The GST inclusive value of the supply is greater than $1000. The father and son purchase the tractor jointly but operate separate businesses. The entity issues a single tax invoice detailing the names of both purchasers. All of the other requirements for a document to be a tax invoice under subsection 29-70(1) of the GST Act are satisfied.

The supply is a taxable supply under section 9-5 of the GST Act. The entity is registered for goods and services tax (GST).

Reasons for Decision

Subsection 29-70(1) of the GST Act and the attendant Regulation 29-70.01 of A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations), specify the information which must be contained on a tax invoice. Subsection 29-70(1) of the GST Act refers to a tax invoice for a taxable supply.

In this case, although there is more than one recipient, the entity is making a single supply. Therefore, the entity is able to issue a single tax invoice. Where the total amount payable, including GST, for the supply is $1000 or more, one of the requirements for a document to be a tax invoice is that the name of the recipient must appear on the tax invoice (subregulation 29-70.01(2) of the GST Regulations). Therefore, if there is more than one recipient of the supply, both recipients' names must appear.

In this case, the names of both recipients appear on the tax invoice.

Therefore, as the names of both recipients appear on the invoice, and the rest of the requirements of a valid tax invoice are satisfied, the entity is issuing a tax invoice that meets the requirements under subsection 29-70(1) of the GST Act.

[NOTE: It is the responsibility of each recipient to determine, based on his/her own individual usage of the item, whether the supply constitutes a creditable acquisition under section 11-5 of the GST Act. If the supply does constitute a creditable acquisition under section 11-5 of the GST Act, each recipient also has the responsibility for calculating the amount of any input tax credit that they may be entitled to (Division 11 of the GST Act).]

Date of decision:  1 December 2000

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 11
   section 11-5
   subsection 29-70(1)

A New Tax System (Goods and Services Tax) Regulations 1999
   regulation 29-70.01
   subregulation 29.70.01(2)

Keywords
Goods & services tax
GST invoices
Tax invoices
GST supply
Taxable supply

Business Line:  GST

Date of publication:  27 August 2001

ISSN: 1445-2782

history
  Date: Version:
  1 December 2000 Original statement
You are here 13 August 2010 Archived

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