RCTI 2017/7
COMMONWEALTH OF AUSTRALIA
This legislative instrument has been repealed by F2023L00785 - A New Tax System (Goods and Services Tax): Recipient Created Tax Invoice Determination 2023.This legislative instrument replaces F2006L03480
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).1. Name of determination
This determination is the Goods and Services Tax: Classes of Recipient Created Tax Invoices Determination 2017 for Demand Side Response Aggregators.
2. Commencement
This determination commences on 1 April 2017.
3. Repeal of previous determination
This determination replaces determination Goods and Services Tax: Classes of Recipient Created Tax Invoices Determination (No 1) 2006 - F2006L03480, (previous determination) registered on 23 October 2006. The previous determination is repealed from 1 April 2017.
4. Application
This determination applies to entities that are aggregators of Demand Side Response (DSR) and that are the recipient of a taxable supply from an entity registered for GST.
This determination is substantially the same as the determination it replaces. An entity that satisfied the requirements of the previous determination and that is an aggregator of DSR will generally satisfy the requirements of this determination.
5. Class of tax invoices that may be issued by the recipient of a taxable supply under this determination
An aggregator of DSR , who is a recipient of a taxable supply of DSR from a registered entity, may issue a tax invoice that belongs to a class of tax invoices for a taxable supply of DSR if they:
- (a)
- establish the value of the supply rather than the supplier ; and
- (b)
- satisfy the requirements set out in paragraph 6.
6. Requirements that must be satisfied by a recipient of a taxable supply under this determination
A recipient must satisfy the following requirements:
- (a)
- the recipient must be registered for GST when the tax invoice is issued
- (b)
- the recipient must set out in the tax invoice the ABN of the supplier
- (c)
- the recipient must issue the original or a copy of the tax invoice 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)
- if there is an adjustment the recipient must issue the original or a copy of an adjustment note to the supplier within 28 days of the adjustment and must retain the original or the copy
- (e)
- the recipient must reasonably comply with its obligations under the taxation laws, and
- (f)
- the recipient must have either a written agreement with the supplier that meets the requirements of paragraph 7, or a written agreement embedded in the Recipient Created Tax Invoice (RCTI) that meets the requirements of paragraph 8.
7. Requirements of a written agreement with the supplier other than a written agreement embedded in the RCTI
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)
- contain the following conditions:
- (i)
- the recipient can issue tax invoices 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.
8. Requirements of a written agreement embedded in the RCTI
The agreement that the recipient has with the supplier embedded in the an RCTI 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 an RCTI agreement. The supplier agrees to notify the recipient if the supplier does not wish to accept the proposed agreement within 21 days of receiving this document.
9. Definitions
The following expressions are defined for the purposes of this determination:
Demand Side Response (DSR) refers to the measures taken by electricity consumers to reduce their demand from the electricity network at peak times.
recipient means an entity that acquires DSR from registered electricity consumers, aggregates it and sells it to electricity retailers, network service providers and other users of DSR .
supplier means an electricity consumer that enters into a written agreement with a DSR aggregating entity to supply DSR as and when requested by the aggregating entity.
Other expressions in this determination have the same meaning as in the GST Act.
Dated: 11 April 2017
Signed by Timothy Dyce
Deputy Commissioner of Taxation
Registration Number: F2017L00431
Registration Date: 13 April
Related Explanatory Statements:
RCTI 2017/7 - Explanatory Statement