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Ruling

Subject: GST and tax invoice requirements

Question 1

Does your tax invoice meet the minimum information requirements under subsection 29-70(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes, your current tax invoice satisfies the requirement in subparagraph 29-70(1)(c)(i) of the GST Act relating to the identify of the supplier, and will meet the minimum requirements of a valid tax invoice when all the other tax invoice requirements under subsection 29-70(1) of the GST Act are satisfied.

Relevant facts and circumstances

You are the trustee company ('Trustee Co') for the Trust ('Trust').

Your trading name is 'XXX Pty Ltd'.

You operate an enterprise.

You have been registered for GST since 1 July 2000.

The sample of your current tax invoice header includes the following details:

'Trustee Co ACN XXX XXX XXX'

'XXX Pty Ltd'

'ABN XX XXX XXX XXX'

A customer has contended that your current tax invoice does not meet the minimum information requirements. In particular, that your tax invoice does not meet the requirement relating to the identity of the supplier (in a capacity as a trustee of a trust) as outlined in subparagraph

29-70(1)(c)(i) of the GST Act.

For the purposes of this private ruling, it is assumed that your current tax invoice meets all the other tax invoice requirements under subsection 29-70(1) of the GST Act.

You have supplied an extract from the Australian business register (ABR) which showed the following details:

ABN XX XXX XXX XXX

Legal name Trust

Trading name XXX Pty Ltd

Type of entity Trust

Trustee Trustee Co

ATO records show the following:

Client name Trust

Client type Other Trust

Trustee Trustee Co

Trading name XXX P/L

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 29-70.

Reasons for decision

Section 29-70 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) sets out the requirements for a tax invoice.

Subsection 29-70(1) of the GST Act, as amended, states:

A tax invoice is a document that complies with the following requirements:

(a) it is issued by the supplier of the supply or supplies to which the document relates, unless it is a *recipient created tax invoice (in which case it is issued by the *recipient);

(b) it is in the *approved form;

(c) it contains enough information to enable the following to be clearly ascertained:

· the supplier's identity and the supplier's *ABN;

· if the total *price of the supply or supplies is at least $1,000 or such higher amount as the regulations specify, or if the document was issued by the recipient - the recipient's identity or the recipient's ABN;

· what is supplied, including the quantity (if applicable) and the price of what is supplied;

· the extent to which each supply to which the document relates is a *taxable supply;

· the date the document is issued;

· the amount of GST (if any) payable in relation to each supply to which the document relates;

· if the document was issued by the recipient and GST is payable in relation to any supply - that the GST is payable by the supplier;

· such other matters as the regulations specify;

(d) it can be clearly ascertained from the document that the document was intended to be a tax invoice or, if it was issued by the recipient, a recipient created tax invoice.

(* means a term defined in Section 195-1 of the GST Act)

Goods and Services Tax Ruling (GSTR) 2000/17 sets out the information requirements for a tax invoice, and has been withdrawn on 25 May 2011. GSTR 2000/17 is replaced by Goods and Services Tax Ruling GSTR 2011/D1, paragraph 43 of which states that when the final ruling is issued, it is proposed to apply on and from 1 July 2010.

From 1 July 2010, requirements for the content of tax invoices are less prescriptive and more flexible than they previously were. This means that documents containing minor errors may still be treated as tax invoices.

Paragraphs 10 to 14 of GSTR 2011/D1 state as follows:

10. A document is in the approved form for a tax invoice if it includes the information required by subsection 29-70(1)…

11. Paragraph 29-70(1)(c) requires specific information to be clearly ascertainable from the document. This means that provided the information can be found in the document, or determined from information within the document, it does not matter that it is not specifically stated or in a particular format. This also means that it must be clear what the information represents.

12. If the information can only be determined by reference to another external source (such as the Australian Business Register (ABR) or document, the information cannot be clearly ascertained from the document.

Identity of the supplier or recipient

13. A tax invoice must include information to establish the identity of the supplier, and the recipient if applicable. Information sufficient to identify the supplier or recipient includes, but is not limited to, the legal name of the entity, the business name, or the trading name.

14. In the case of a tax invoice issued by the trustee of a trust it is the trustee's identity and ABN (as trustee) that must be clearly ascertainable from the document. Information sufficient to identify the trustee would include the legal name of the trustee acting in that capacity.

Further, paragraphs 68 to 70 of GSTR 2011/D1 state as follows:

Identity of the supplier or recipient

68. The term 'identity' is not defined in the GST Act and therefore takes its ordinary meaning. To satisfy this requirement the tax invoice would need to include enough information to establish the identity of the supplier, and the recipient if applicable. Information sufficient to identify the supplier or recipient includes, but is not limited to, the legal name of the entity; the business name; or the trading name. Typically, a taxi driver licence or accreditation number is not sufficient to identify the supplier. In this case refer to Example 7 at paragraphs 171 to 172 of Appendix 3 to this Ruling.

Tax invoices issued by the trustee of a trust

69. Although an entity is defined to include a trust, a trust has no legal personality and so will not be registered in its own right on the ABR. Rather, the trustee of the trust will be registered and will be issued with an ABN in its capacity as trustee. The legal name of the entity will be identified on the register as the trustee for the particular trust.

70. For a supply made by the trustee of a trust, in its trustee capacity, it is the trustee's identity and ABN (as trustee of the trust) that must be clearly ascertainable from the tax invoice. Information sufficient to identify the trustee of the trust would include the legal name for the trustee in that capacity, for example, Jones' Pty Ltd as Trustee for the Jones' Family Trust.

The sample tax invoice you provided includes the name of the trustee of the trust (being 'Trustee Co'), with the relevant ABN and trading name (being 'XXX Pty Ltd').

Sub-paragraph 29-70(1)(c)(i) of the GST Act does not refer to any specific requirement that an entity's name on a tax invoice has to be the legal or the trading name of the entity as it appears on the ABR.

Goods and Services Tax Advice GSTA TPP 030 advises that the name on a tax invoice is to provide a clear and accurate indication of who the entity is. It advises that the name on a tax invoice must be a clear and unambiguous word or combination of words by which the recipient is designated or known. Whether this is the entity's trading name, business name or legal name does not make any difference to the requirements of a tax invoice. It further advises that for identifying entities and distinguishing between particular entities the ATO will rely primarily on the ABN. This is one of the reasons why the ABN of the supplier must be shown on all tax invoices. Although this GST Advice is based on the withdrawn GSTR 2000/17, it is still applicable because it is consistent with the amendments to section 29-70 of the GST Act, regarding the supplier's identity.

As there is no requirement in the GST Act that the name registered is to be the 'business' or 'trading' name, it is considered that a name by which the entity is commonly known and identified in a commercial sense would be sufficient to satisfy the tax invoice requirements.

Furthermore, the Commissioner had previously stated that the requirement to show the then 'name' of the trustee was satisfied if the document included the correct ABN and identified, for example: the legal name of the entity that acts as the trustee (for example, Jones' Pty Ltd or The Trustee for the Jones' Family Trust); or the trading name of the enterprise carried on by the trustee of that trust (for example, Jones' Plumbing Services); as the ABR can be relied upon to reveal the underlying trust relationship.

In your circumstance, your current tax invoice shows the correct ABN and the relevant trading name of the enterprise carried on by the trustee of that trust (being 'XXX Pty Ltd'). In addition, the trustee's name for the trust (being 'Trustee Co') is also stated.

Accordingly, the sample tax invoice you provided satisfies the requirement in subparagraph

29-70(1)(c)(i) of the GST Act relating to the identify of the supplier, and will meet the minimum requirements of a valid tax invoice when all the other tax invoice requirements under subsection 29-70(1) of the GST Act are satisfied.

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