Edited version of private advice

Authorisation Number: 1051611570350

Date of advice: 22 November 2019

Ruling

Subject: Tax invoices issued by billing agent on behalf of other entity

Question

Does the sample tax invoice satisfy the requirements of subsection 29-70(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes.

Relevant facts and circumstances

You are registered for GST.

You will enter into a written agreement with entity X, under which entity X will have authority to issue tax invoices on your behalf.

You provided to the Australian Taxation Office a sample invoice that would be issued by entity X on your behalf in respect of a sale you make. The sample tax invoice contains the following information:

• The heading 'Tax invoice'

• The supplier's identity - you
• The supplier's ABN - your ABN
• The customer's name
• Description of what was supplied, including the quantity
• Price of what was supplied.
• The GST amount for each line item and the total GST for the invoice.
• The date that invoice was issued.

The invoices will also specify that:

Entity X is the authorised invoicing agent for various entities. The goods and services described on this tax invoice are supplied by you (and your ABN appears).

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 subsection 29-10(3)

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

Reasons for decision

In accordance with subsection 29-70(2) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the supplier of a taxable supply must, within 28 days after the recipient of the supply requests it, give to the recipient a tax invoice for the supply, unless it is a recipient created tax invoice.

In accordance with subsection 29-70(1) of the GST Act, 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 was 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.

ATO Interpretative Decision ATO ID 2010/146 deals with tax invoices issued by another entity on behalf of a supplier. ATO ID 2010/146 considers whether the requirement that the supplier issues the tax invoice is satisfied where two entities (Entity A and Entity B) make taxable supplies to the same client but only one tax invoice is produced by Entity B. Both Entity A and Entity B's details are listed on the invoice as are their respective supplies and a written agreement exists between the parties for Entity B to prepare and issue an invoice on behalf of Entity A.

ATO ID 2010/146 provides that Entity A is treated as having issued a tax invoice for the purposes of paragraph 29-70(1)(a) of the GST Act.

As you have a written agreement with entity X under which entity X will prepare and issue tax invoices on your behalf and your relevant details are on the invoices, it is considered that you issue a tax invoice for the purposes of paragraph 29-70(1)(a) of the GST Act.

Goods and Services Tax Ruling GSTR 2013/1 sets out the information requirements for a tax invoice. It also explains when a document is in the approved form for a tax invoice.

Paragraph 7 of GSTR 2013/1 provides that a document is in the approved form for a tax invoice if it includes such information required by subsection 29-70(1) of the GST Act and otherwise meets the requirements of that subsection.

Further, paragraph 13 of GSTR 2013/1 provides that paragraph 29-70(1)(c) of the GST Act requires that particular information is able to be clearly ascertained from the information in the document. This means that the information does not have to be specifically stated or in a particular format. What is required is that the information can be found in the document or determined from information within the document. It further means that to be clearly ascertained, enough information must be present and it must be clear what the information represents.

The sample tax invoice you provided is 'in the approved form' for the purposes of paragraph 29-70(1)(b) as:

• it contains the information required by paragraph 29-70(1)(c); and
• it meets the requirement in paragraph 29-70(1)(d) that it can be clearly ascertained from the document that it is intended to be a tax invoice; and
• as discussed above, it is considered that the tax invoice is issued by the supplier of the relevant supplies, for the purposes of paragraph 29-70(1)(a) when entity X issues the invoice on your behalf.

Therefore, the sample tax invoice you provided satisfies all the requirements of subsection 29-70(1) of the GST Act.