Edited version of private ruling

Authorisation Number: 1011667478130

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Ruling

Subject: GST and tax invoices

Question

Is the document you provided a valid tax invoice?

Answer

Yes.

Relevant facts and circumstances

You are registered for goods and services tax (GST).

You have received from a supplier a document purporting to be tax invoice.

This document lists the following information;

· Supplier's name.

· Supplier's ABN.

· The words 'tax invoice'.

· Quantity.

· Description of the item supplied.

· Balance - $X.

· Date

· GST - $X/10

· Direct deposit account name.

· Bill-to name.

Reasons for decision

Summary

Yes, the document you have provided is a valid tax invoice.

Detailed reasoning

New information requirements for a tax invoice were introduced from 1 July 2010. However, it is our policy to treat a document as a valid tax invoice if it meets the information requirements in force prior to 1 July 2010.

Prior to 1 July 2010, for a document to be treated as a tax invoice for taxable sales totalling less than $1,000, it must include:

· the words 'tax invoice' stated prominently

· the name of the seller

· the Australian Business Number (ABN) of the seller

· the date of issue of the tax invoice

· a brief description of the thing or things sold

· the GST-inclusive price of the taxable sale, and

· the GST amount (this can be shown separately or, where the GST to be paid is exactly one-eleventh of the total price, as a statement such as 'Total price includes GST').

In your case, you have been issued with a document from a supplier that purports to be a tax invoice. However, you have raised concerns that although the document contains most of the above information, it is not a tax invoice given it does not include the supplier's correct name and quotes an incorrect ABN for the supplier. You are also concerned that your name and ABN included on the document are incorrect (or at least do not correspond).

The Commissioner's view on the information requirements of a tax invoice prior to 1 July 2010 is provided by Goods and Services Tax Ruling GSTR 2000/17. GSTR 2000/17 provides that the name of the supplier can include what they are known by, for example their trading name (albeit this is not their legal name).

The supplier has identified themselves on the document you have provided. In addition, the supplier operates a website under this name. We consider that they are holding themselves out under this name.

Paragraph 60 of GSTR 2000/17 states that a tax invoice issued by the trustee of a trust must show the ABN of the trustee, issued to them in that capacity. A verification check on the Australian Business Register (www.abr.gov.au ) confirms that the ABN stated on the document is the ABN of the supplier.

Please note that the information requirements necessary for a document to be treated as a tax invoice for sales totalling less than $1000 do not require any information in relation to the recipient of the supply, even though this may be included on the document (and may even be incorrect). Consequently, the document the supplier has issued to you includes all of the necessary information for it to be treated as a tax invoice.

You have also raised concerns in relation to your name and ABN. The information requirements necessary for a document to be treated as a tax invoice for sales totalling $1000 or more do require that the name of the buyer, and either the address or ABN of the buyer, appear on the document.

Paragraph 60 of GSTR 2000/17 states that it is acceptable for a tax invoice to show the name of the trustee. Hence the name displayed on the tax invoice is an acceptable form of your name. Therefore, if you were issued with a document from this supplier for taxable sales totalling $1,000 or more then the document you have currently been issued with would also meet the information requirements for it to be treated as a tax invoice.

You have stated that you have encountered issues impacting your business in situations where the name and ABN listed on an invoice do not match exactly. The ATO is not responsible for making taxation law, and can only advise you as to the operation of taxation law. However, we would encourage you to raise your concerns using the Tax Issues Entry System (TIES). This service can be accessed at www.ties.gov.au.