Details on the changes to tax invoices and recipient created tax invoices (RCTIs) being introduced from 1 July 2010 as part of the Board of Taxation’s review of the legal framework for the administration of GST.
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. This reduces the costs of additional follow up with suppliers.
Where you receive a document from a supplier that is missing key information, you may still treat the document as a tax invoice under certain circumstances.
It must be clear that the document is intended to be a tax invoice and you must be able to clearly ascertain the missing information from other documents issued by that supplier. This concession does not apply to adjustment notes or recipient created adjustment notes.
As is currently the case, suppliers will still be required to provide a tax invoice to recipients, when requested.
Requirements for the content of RCTIs have been relaxed in line with those for tax invoices. Therefore, costs associated with pursuing recipients where tax invoices contain minor errors should be reduced.
However, the following special requirements apply and must be able to be clearly ascertained from the document:
- the identity or Australian business number (ABN) of the recipient of the supply
- that the supplier is liable for any GST payable.
The concession regarding missing information also applies to RCTIs for suppliers, but not recipients.
