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Ruling

Subject: GST and electronic tax invoice

Question

Does the electronic tax invoice created and issued by suppliers to you satisfy the requirements of a tax invoice under section 29-70 of the GST Act?

Answer

Yes, the electronic tax invoice created and issued by suppliers to you satisfies the requirements of a tax invoice under section 29-70 of the GST Act.

Relevant facts and circumstances

You are a retailer of goods.

You purchase goods from suppliers who issue separate paper invoices for each delivery resulting to a significant number of tax invoices to be processed.

To do away with the paper tax invoices, you established an online system for your suppliers through which they would create and issue tax invoices for the goods that you purchase from them.

The online system is operated by a third party provider. The supplier is the only party that is authorised to make changes to the order. Those changes are for quantity and, in limited circumstances, the weight. The supplier is the only party that can create the tax invoice on the online system and submit it to you.

A sample of a tax invoice issued through the online system contains the following information:

· the words 'Tax Invoice' prominently displayed on the top of the document

· the invoice number and the date the invoice is issued

· the name and address of the supplier

· the ABN of the supplier

· your name and address as the recipient

· the description of the goods supplied

· the GST-exclusive and GST-inclusive prices of the goods

· the amount of GST

Relevant legislative provision

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

Reasons for decision

A tax invoice may be issued in electronic form, for example by Electronic Data Interchange (EDI). Section 25 of the Acts Interpretation Act 1901 defines 'document' to include any article or material from which sounds, images or writings are capable of being reproduced with or without the aid of any other article or device. Therefore, a document in electronic form that meets the requirements of subsection 29-70(1) of the GST Act is a tax invoice.

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

(1) 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:

(i) the supplier's identity and the supplier's *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.

Issued by the supplier

A document is taken to have been issued by the supplier when possession of the document is passed from the supplier to the recipient. That is, the document is delivered to the recipient. In the case of a document in electronic form, it is taken to have been issued by the supplier when it has been created and transmitted to the recipient.

In this case, the supplier creates the tax invoice and transmits it to you through the online system. As such, the tax invoice is issued by the supplier in accordance with paragraph 29-70(1)(a) of the GST Act.

In the approved form

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

In this case, the tax invoice issued by the supplier through the online system contains the following:

· the name and address of the supplier establishing the supplier's identity;

· the supplier's ABN;

· your identity as the recipient;

· description of each goods supplied and its price;

· the quantity of each goods supplied and whether it is taxable;

· the date that the invoice is issued;

· the amount of GST payable for each supply

As the tax invoice issued by the supplier through the online system contains the information above, the requirement in paragraph 29-70(1)(c) of the GST Act is satisfied. Therefore, the tax invoice is in the approved form as required in paragraph 29-70(1)(b) of the GST Act.

Intended to be a tax invoice

The document must contain enough information that it can be clearly determined from the document that it is intended to be a tax invoice or recipient created tax invoice. This is an objective test that must be satisfied by reference to the document itself.

A direct way of satisfying that a document is intended as a tax invoice is to include the words 'Tax Invoice' or 'GST Invoice'.

In some situations, the context of the document itself may make the intention clear without any title to that effect. For example, a document could include a statement to the effect that it provides all the information needed for the recipient to claim their input tax credits. However, merely containing all of the other required information will not be sufficient to demonstrate that the document is intended to be a tax invoice. It is expected that most suppliers will continue to include the words 'Tax Invoice' on documents to avoid any doubt.

In this case, the invoice issued by the suppliers through the online system has the words 'Tax Invoice'. As such, the requirement in paragraph 29-70(1)(d) is satisfied.

Accordingly, the tax invoice created and issued by the suppliers to you through the online system satisfies the requirements of a tax invoice under section 29-70 of the GST Act.