a Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Defined Commission and/or Fee Based Services in the Financial Industry
Reference: RCTI 2017/12
Document type: Determination
Enabling act: A New Tax System (Goods and Services Tax) Act 1999
Date of issue: 11 April 2017
Signatory: Timothy Dyce Deputy Commissioner of Taxation
Registration number: F2017L00419
Registration date: 12 April 2017
This legislative instrument replaces F2007B00006 | This determination replaces determination A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 49) 2000 - F2007B00006 (previous determination), registered on 3 January 2007. The previous determination is repealed from 1 April 2017. | This determination is substantially the same as the determination that it replaces. An entity that satisfied the requirements of the previous determination and that is a recipient of a taxable supply of a defined commission and/or fee based service will satisfy the requirements of this determination.


1. Name of determination: This determination is a Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Defined Commission and/or Fee Based Services in the Financial Industry. | 2. Commencement: This determination commences on 1 April 2017. | 3. Repeal of previous determination: This determination replaces determination A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 49) 2000 - F2007B00006 (previous determination), registered on 3 January 2007. The previous determination is repealed from 1 April 2017. | 4. Application: This determination applies to a recipient of a taxable supply of a defined commission and/or fee based service . This determination is substantially the same as the determination that it replaces. An entity that satisfied the requirements of the previous determination and that is a recipient of a taxable supply of a defined commission and/or fee based service will satisfy the requirements of this determination. 5. Class of tax invoices that may be issued by the recipient of a taxable supply under this determination A recipient of a taxable supply of a defined commission and/or fee based service may issue a tax invoice that belongs to a class of tax invoices, for the taxable supply if they: (a) establish the value of the supply rather than the supplier; and (b) satisfy the requirements set out in paragraph 6. (a) establish the value of the supply rather than the supplier; and (b) satisfy the requirements set out in paragraph 6. | 6. Requirements that must be satisfied by a recipient of a taxable supply under this determination: A recipient must satisfy the following requirements: (a) the recipient must be registered for GST when the tax invoice is issued (b) the recipient must set out in the tax invoice the ABN of the supplier (c) the recipient must issue the original or a copy of the tax invoice to the supplier within 28 days of making, or determining, the value of a taxable supply and must retain the original or the copy (d) if there is an adjustment the recipient must issue the original or a copy of an adjustment note to the supplier within 28 days of the adjustment and must retain the original or the copy (e) the recipient must reasonably comply with its obligations under the taxation laws, and (f) the recipient must have either a written agreement with the supplier that meets the requirements of paragraph 7, or a written agreement embedded in the Recipient Created Tax Invoice (RCTI) that meets the requirements of paragraph 8. (a) the recipient must be registered for GST when the tax invoice is issued (b) the recipient must set out in the tax invoice the ABN of the supplier (c) the recipient must issue the original or a copy of the tax invoice to the supplier within 28 days of making, or determining, the value of a taxable supply and must retain the original or the copy (d) if there is an adjustment the recipient must issue the original or a copy of an adjustment note to the supplier within 28 days of the adjustment and must retain the original or the copy (e) the recipient must reasonably comply with its obligations under the taxation laws, and (f) the recipient must have either a written agreement with the supplier that meets the requirements of paragraph 7, or a written agreement embedded in the Recipient Created Tax Invoice (RCTI) that meets the requirements of paragraph 8. 7. Requirements of a written agreement with the supplier other than a written agreement embedded in the RCTI The written agreement the recipient has with the supplier must: (a) specify the supplies to which it relates (b) be current and effective when the RCTI is issued, and (c) contain the following conditions: (i) the recipient can issue tax invoices in respect of the supplies (ii) the supplier will not issue tax invoices in respect of the supplies (iii) the supplier acknowledges that it is registered for GST when it enters into the agreement and that it will notify the recipient if it ceases to be registered, and (iv) The recipient acknowledges that it is registered for GST when it enters into the agreement and that it will notify the supplier if it ceases to be registered. (a) specify the supplies to which it relates (b) be current and effective when the RCTI is issued, and (c) contain the following conditions: (i) the recipient can issue tax invoices in respect of the supplies (ii) the supplier will not issue tax invoices in respect of the supplies (iii) the supplier acknowledges that it is registered for GST when it enters into the agreement and that it will notify the recipient if it ceases to be registered, and (iv) The recipient acknowledges that it is registered for GST when it enters into the agreement and that it will notify the supplier if it ceases to be registered. (i) the recipient can issue tax invoices in respect of the supplies (ii) the supplier will not issue tax invoices in respect of the supplies (iii) the supplier acknowledges that it is registered for GST when it enters into the agreement and that it will notify the recipient if it ceases to be registered, and (iv) The recipient acknowledges that it is registered for GST when it enters into the agreement and that it will notify the supplier if it ceases to be registered. | 8. Requirements of a written agreement embedded in the RCTI: The agreement that the recipient has with the supplier that is embedded in the RCTI must contain the following statement: The recipient and the supplier declare that this agreement applies to supplies to which this tax invoice relates. The recipient can issue tax invoices in respect of these supplies. The supplier will not issue tax invoices in respect of these supplies. The supplier acknowledges that it is registered for GST and that it will notify the recipient if it ceases to be registered. The recipient acknowledges that it is registered for GST and that it will notify the supplier if it ceases to be registered for GST. Acceptance of this RCTI constitutes acceptance of the terms of this written agreement. Both parties to this supply agree that they are parties to an RCTI agreement. The supplier agrees to notify the recipient if the supplier does not wish to accept the proposed agreement within 21 days of receiving this document. | 9. Definitions: The following expressions are defined for the purposes of this determination: defined commission and/or fee based service means a service supplied by: (a) a financial supply facilitator or agent of a financial supply facilitator ; and/or (b) an entity providing management, administrative, trustee, custodial or similar services where the recipient is a financial supply provider . financial supply facilitator has the meaning given by regulation 40-5.07 of A New Tax System (Goods and Services Tax) Regulations 1999. financial supply provider has the meaning given by regulation 40-5.06 of A New Tax System (Goods and Services Tax) Regulations 1999. (a) a financial supply facilitator or agent of a financial supply facilitator ; and/or (b) an entity providing management, administrative, trustee, custodial or similar services where the recipient is a financial supply provider . Other expressions in this determination have the same meaning as in the GST Act.