Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Food and Grocery Manufacturers and Retailers 
Reference: RCTI 2017/2
Document type: Determination
Enabling act: A New Tax System (Goods and Services Tax) Act 1999
Date of issue: 28 March 2017
Signatory: Timothy Dyce Deputy Commissioner of Taxation
Registration number: F2017L00365
Registration date: 31 March 2017
This legislative instrument replaces and repeals A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 25) 2000 (F2006B11592) , registered on 17 November 2006. | This determination repeals and replaces determination A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 25) 2000 - F2006B11592, registered on 17 November 2006. | This determination is substantially similar to the determination it replaces. An entity that satisfied the requirements of the previous determination and that is a food and grocery manufacturer or retailer will generally satisfy the requirements of this determination.


1. Name of determination: This determination is the Goods and Services Tax: Recipient Created Tax Invoice Determination 2017 for Food and Grocery Manufacturers and Retailers . | 2. Commencement: This determination commences on the day after its registration on the Federal Register of Legislation. | 3. Repeal of previous determination: This determination repeals and replaces determination A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 25) 2000 - F2006B11592, registered on 17 November 2006. | 4. Application: This determination applies to food and grocery manufacturers or retailers that satisfy the requirements of this determination. This determination is substantially similar to the determination it replaces. An entity that satisfied the requirements of the previous determination and that is a food and grocery manufacturer or retailer will generally satisfy the requirements of this determination. 5. Classes of Tax Invoices that may be issued by the recipient of a taxable supply under this determination A food and grocery manufacturer or retailer may issue a recipient created tax invoice (RCTI) for the receipt of a taxable supply of membership or association of the Australian Food and Grocery Council if they: (a) establish the value of the taxable supply; and (b) satisfy the requirements set out in paragraph 6. (a) establish the value of the taxable supply; 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 supplier and 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; (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 RCTI that meets the requirements of paragraph 8. (g) the recipient must not issue a document that would otherwise be a recipient created tax invoice, on or after the date when the recipient or the supplier has failed to comply with any of the requirements of this determination; and (h) if the recipient has a current GST turnover of less than $1,000,000, it must notify the Commissioner in writing of the recipient's intention to use recipient created tax invoices. This notification must be made before 14 days have elapsed after the first occasion that a recipient created tax invoice is issued by that recipient. (a) the supplier and 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; (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 RCTI that meets the requirements of paragraph 8. (g) the recipient must not issue a document that would otherwise be a recipient created tax invoice, on or after the date when the recipient or the supplier has failed to comply with any of the requirements of this determination; and (h) if the recipient has a current GST turnover of less than $1,000,000, it must notify the Commissioner in writing of the recipient's intention to use recipient created tax invoices. This notification must be made before 14 days have elapsed after the first occasion that a recipient created tax invoice is issued by that recipient. 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: An agreement with the supplier embedded in an RCTI it issues that contains 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: food and grocery manufacturer or retailer means an entity that provides consideration in the form of a membership or association fee for membership or association of the Australian Food and Grocery Council. Other expressions in this determination have the same meaning as in the GST Act.