{"id":5536,"date":"2020-12-25T15:27:04","date_gmt":"2020-12-25T04:27:04","guid":{"rendered":"https:\/\/mnygroup.wpengine.com\/?p=5536"},"modified":"2025-02-01T18:49:16","modified_gmt":"2025-02-01T07:49:16","slug":"what-is-a-recipient-created-tax-invoice","status":"publish","type":"post","link":"https:\/\/mnygroup.com.au\/en\/what-is-a-recipient-created-tax-invoice\/","title":{"rendered":"What Is a Recipient Created Tax Invoice?"},"content":{"rendered":"<nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><span class=\"last\">Home<\/span><\/p><\/nav>\n<blockquote><p>Tax invoices are an essential element of Australia\u2019s taxation system, and serve both to collect taxation revenue related to the goods and services on which GST is levied as well as record the credits that are\u00a0 claimable by eligible businesses.<\/p><\/blockquote>\n<p><span style=\"color: #000000;\">A business registered for GST will generally be required to hold a tax invoice for any transaction in order for an input tax credit to be claimed. The tax invoice can usually only be issued by the entity that made the taxable supply, however there are circumstances where, in order to secure access to input credit claims, the receiver of the services or goods can generate such an invoice. This is known as a recipient-created tax invoice (RCTI).<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-5537 aligncenter\" src=\"https:\/\/mnygroup.com.au\/wp-content\/uploads\/2021\/02\/What-is-a-recipient-created-tax-invoice-1024x641.jpg\" alt=\"What is a recipient created tax invoice?\" width=\"1020\" height=\"638\" srcset=\"https:\/\/mnygroup.com.au\/wp-content\/uploads\/2021\/02\/What-is-a-recipient-created-tax-invoice-1024x641.jpg 1024w, https:\/\/mnygroup.com.au\/wp-content\/uploads\/2021\/02\/What-is-a-recipient-created-tax-invoice-300x188.jpg 300w, https:\/\/mnygroup.com.au\/wp-content\/uploads\/2021\/02\/What-is-a-recipient-created-tax-invoice-768x481.jpg 768w, https:\/\/mnygroup.com.au\/wp-content\/uploads\/2021\/02\/What-is-a-recipient-created-tax-invoice-1536x962.jpg 1536w, https:\/\/mnygroup.com.au\/wp-content\/uploads\/2021\/02\/What-is-a-recipient-created-tax-invoice.jpg 1920w\" sizes=\"auto, (max-width: 1020px) 100vw, 1020px\" \/><\/p>\n<p><span style=\"color: #000000;\">Note however that an RCTI can only be issued in circumstances that are ATO approved. The circumstances are typically those where for commercial or practical reasons it is appropriate for the recipient of a supply to calculate and\/or issue an invoice. Government grants and trade-in contracts are typical RTCI examples.<\/span><\/p>\n<p><span style=\"color: #000000;\">You can issue an RCTI if:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">you and the supplier are both registered for GST <\/span><\/li>\n<li><span style=\"color: #000000;\">you and the supplier agree in writing that you may issue an RCTI and they will not issue a tax invoice<\/span><\/li>\n<li><span style=\"color: #000000;\">the agreement is current and effective when you issue the RCTI<\/span><\/li>\n<li><span style=\"color: #000000;\">the goods or services being sold under the agreement are of the type that the ATO has determined can be invoiced using an RCTI.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">Your written agreement can either be a separate document specifying the supplies, or you can embed this information or specific terms in the tax invoice.<\/span><\/p>\n<p><span style=\"color: #000000;\">To be valid, an RCTI must contain sufficient information to clearly determine the<a href=\"https:\/\/www.ato.gov.au\/business\/gst\/tax-invoices\/\" target=\"_blank\" rel=\"noopener\"> requirements of tax invoices <\/a>and show the document is intended to be a recipient-created tax invoice, not a standard tax invoice.<\/span><\/p>\n<p><span style=\"color: #000000;\">In addition it must detail the purchaser\u2019s identity or ABN. If GST is payable, it must also show that it\u2019s payable by the supplier. As the recipient, you must:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">issue the original or a copy of your RCTI to the supplier within 28 days of one of the following dates<\/span>\n<ul>\n<li><span style=\"color: #000000;\">the date of the sale<\/span><\/li>\n<li><span style=\"color: #000000;\">the date the value of the sale is determined\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000000;\">retain the original or a copy of the RCTI <\/span><\/li>\n<li><span style=\"color: #000000;\">comply with your obligations under the tax laws.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">You will need to stop issuing RCTIs once any of the requirements for issuing RCTIs are no longer met.<\/span><\/p>\n<p><span style=\"color: #000000;\">The ATO has supplied a template that you can use to generate an RCTI. See www.ato.gov.au\/Forms\/ Recipient-created-tax-invoices, or ask us for a copy.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><strong><a href=\"https:\/\/mnygroup.com.au\/\">www.mnygroup.com<\/a><\/strong><\/p>\n<p><span style=\"color: #999999;\"><em>This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.<\/em><\/span><\/p>\n<div class=\"blog-share text-center\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tax invoices are an essential element of Australia\u2019s taxation system, and serve both to collect taxation revenue related to the goods and services on which GST is levied as well as record the credits that are\u00a0 claimable by eligible businesses.<\/p>\n","protected":false},"author":17,"featured_media":5537,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1689],"tags":[1468],"class_list":["post-5536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-advice","tag-tax","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-20"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts\/5536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/comments?post=5536"}],"version-history":[{"count":0,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts\/5536\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/media\/5537"}],"wp:attachment":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/media?parent=5536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/categories?post=5536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/tags?post=5536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}