ATO Interpretative Decision

ATO ID 2001/792 (Withdrawn)

Goods and Services Tax

GST and the issue of a tax invoice for a compulsory third party motor vehicle insurance payment made prior to 1 July 2003
FOI status: may be released

This ATO ID is withdrawn on the basis that it is a straight application of the law and does not contain an interpretative decision

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 motor vehicle insurer, required to issue a tax invoice, under section 29-70 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies compulsory third party motor vehicle insurance to a customer prior to 1 July 2003 and subsection 23(1A) of the A New Tax System (Goods and Services Tax) Act 1999 (Transition Act) applies?

Decision

No, the entity is not required to issue a tax invoice under section 29-70 of the GST Act when it supplies compulsory third party motor vehicle insurance to a customer prior to 1 July 2003 and subsection 23(1A) of the Transition Act applies.

Facts

The entity is a motor vehicle insurer. The entity supplies compulsory third party motor vehicle insurance to a customer before 1 July 2003.

The compulsory third party motor vehicle insurance has been levied in connection with a compulsory third party scheme that is a statutory compensation scheme specified in the A New Tax system (Goods and Services Tax Transition) Regulations 2000 (Transition Regulations).

The customer is not entitled to an input tax credit under subsection 23(1) of the A New Tax System (Goods and Services Tax Transition) Act 1999 (Transition Act).

The entity is registered for goods and services tax (GST). The supply of the compulsory third party motor vehicle insurance to the customer is a taxable supply under section 9-5 of the GST Act.

Reasons for Decision

Under subsection 29-70(2) of the GST Act, the supplier of a taxable supply must, within 28 days after the recipient of the supply requests it, give the recipient a tax invoice for the supply.

In this case, the supply of compulsory third party motor vehicle insurance to the customer is a taxable supply under section 9-5 of the GST Act. As such, under subsection 29-70(2) of the GST Act, a tax invoice should be issued to the customer within 28 days after the customer requests it.

However, subsection 23(1A) of the Transition Act provides that if subsection 23(1) of the Transition Act applies and the customer is not entitled to an input tax credit for the acquisition, then section 29-70 of the GST Act does not apply in relation to the supply to which the acquisition relates.

In this case, the customer is not entitled to an input tax credit, under subsection 23(1) of the Transition Act, for a payment of compulsory third party motor vehicle insurance made prior to 1 July 2003. As such, section 29-70 of the GST Act does not apply and the entity is not required to issue a tax invoice when it supplies compulsory third party motor vehicle insurance to a customer prior to 1 July 2003.

Date of decision: 17 September 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   section 29-70
   subsection 29-70(2)

A New Tax System (Goods and Services Tax Transition) Act 1999
   subsection 23(1)
   paragraph 23(2)(a)
   subsection 23(1A)

A New Tax System (Goods and Services Tax Transition) Regulations 2000
the Regulations

Related ATO Interpretative Decisions
ATO ID 2001/791

Other References:
NAT 3427 - Insurance and GST - Fact Sheet

Keywords
Goods & services tax
GST invoices
Tax invoices
GST insurance
Third parties
GST supplies & acquisitions
Taxable supply
GST transitional issues
Special transitional rules

Business Line: Goods and services tax

Date of publication: 21 December 2001

ISSN: 1445-2782

history

	Date:	Version:
	17 September 2001	Original statement
You are here	23 December 2005	Archived

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