Edited version of private ruling

Authorisation Number: 1011670653054

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Ruling

Subject: Whether an invoice listing supplies made by two entities will be a valid tax invoice

You carry on an enterprise of providing services.

At times you and various entities will provide services to a given client.

The services will be separately (and directly) provided by each entity, notwithstanding that the work product may be combined in a single document or report delivered to the client.

While you are registered for GST, the other entities are not.

It is proposed that an entity will issue a combined invoice/tax invoice for a client in respect to the services provided by them as well as for the services performed by you for the same client.

The other entity will issue the tax invoice in respect to the services performed by you in their capacity as a "billing agent".

The format of the combined invoice/tax invoice, to be issued by any of the entities in relation to your services contain the following characteristics:

· Standard information such as your name, Australian Business number (ABN), the recipients name, ABN or address, the words "tax invoice" prominently stated, the date of issue, description of the services provided and the price, with the GST component clearly identified;

· A detailed break-down of services provided by you and the other entity for each legal matter covered by the bill;

· The statement that the other entity is issuing your tax invoice for your services and disbursements on your behalf.

Details of the taxable supplies made by you and the "out-of-scope" supplies made by the other entity will be separately identified.

Clearly note that it is intended to be a tax invoice for your services and disbursement supplied by you.

You are not in a common law relationship with any of the other entities.

This ruling is based on your advice that a common law relationship of principal/agent between you and the other entities is not in place. That is the client contracts separately with each entity.

Subsection 29-70(1) of the GST Act outlines that a tax invoice is a document that complies with the following requirements:

(a) it is issued by the supplier of the supply for 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:

i) the supplier's identity and the suppliers ABN;

ii) 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.

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

iv) the extent to which each supply to which the document relates is a taxable supply;

v) the date the document is issued;

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

vii) 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;

viii) 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.

One of the requirements for a document to be a tax invoice is that it needs to be issued by the supplier. The expression "issued by the supplier" is not defined by the GST Act and therefore takes its ordinary meaning.

The Macquarie Dictionary defines "issue" as:

the act of sending,….delivery; emission

As a verb (issued, issuing) it means:

21. to send out; discharge; emit.

The Encyclopaedic Your Legal Dictionary defines "supplier" as:

one who provides goods or services by way of sale

Accordingly the expression "supplier supplies" means a document is sent out, discharged or emitted by the entity making the supply of goods or services. However the GST Act provides exceptions to this rule such as in the circumstance where:

· an agent for the supplier gives the recipient a tax invoice;

· it is a recipient creates a tax invoice

· it is issued by an intermediary under Division 153B of the GST Act.

In furtherance to this the Australian Tax Office (ATO) has given consideration under ATO Interpretative Decision ATO ID 2010/146 whether the term "supplier supplies" is satisfied where two entities make taxable supplies to the same client but only one tax invoice is produced by one of the two suppliers. It is noted that both entity's details are listed on the invoice as are their respective supplies and that a written agreement exists between the parties for one entity to prepare and issue an invoice on behalf of the other.

The principle of the precedential ATO view in ATO ID 2010/146, at its bare minimum level, provides that a supplier is treated as having issued a tax invoice, where an entity who acts in its own name and in the name and on behalf of the supplier for the separate supplies each makes to the same third party, issues the tax invoice to that third party.

We do not consider that the registration status of the entities to be material facts that would prevent the application of the ATO ID 2010/146 to your circumstances. That is where a written agreement exists between you and the other entity for one entity to issue invoices on behalf of the other and both entities make supplies to the same client, paragraph 29-70(1)(a) of the GST Act will be satisfied.

We find that the invoice provided in your ruling submission meets the other tax invoice requirements of subsection 29-70 of the GST Act. It is in an approved form and contains enough information to allow certain factors to be determined.