the A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 6) 2001
Reference: RCTI 2001/6 (As Amended)
Document type: Legislative Instrument
Enabling act: A New Tax System (Goods and Services Tax) Act 1999
Date of issue: 18 May 2009
Signatory: Prepared by the Goods and Services Tax Centre of Expertise, Australian Taxation Office
Registration number: F2005B02818
Registration date: 9 December 2005


2. (a) This determination commences on 1st August 2001.: (b) This determination does not revoke or vary any previous determination made by the Commissioner or a delegate of the Commissioner. Application of determination 3. This determination applies to an entity not determined previously as being able to issue a tax invoice belonging to a class of tax invoices that may be issued by a recipient. Classes of Tax Invoices that may be issued by the recipient of a taxable supply 3. A tax invoice that belongs to a class of tax invoices for a taxable supply which consists of entering into a covered services obligation may be issued by an entity that is the recipient of that taxable supply where the recipient: (i) establishes the value of those services after the supply is made; and (ii) satisfies the requirements set out in Clause 5. (i) establishes the value of those services after the supply is made; and (ii) satisfies the requirements set out in Clause 5. Requirements that must be satisfied by a recipient of a taxable supply 5. A recipient must satisfy the following requirements: (a) the recipient must be registered for GST when the 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) 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 specifying the supplies to which it relates, that is current and effective when the RCTI is issued, agreeing that: (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 when it enters into the agreement and that it will notify the supplier if it ceases to be registered for GST; or • 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. (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 (a) the recipient must be registered for GST when the 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) 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 specifying the supplies to which it relates, that is current and effective when the RCTI is issued, agreeing that: (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 when it enters into the agreement and that it will notify the supplier if it ceases to be registered for GST; or • 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. (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 • a written agreement with the supplier specifying the supplies to which it relates, that is current and effective when the RCTI is issued, agreeing that: (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 when it enters into the agreement and that it will notify the supplier if it ceases to be registered for GST; or • 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. Definitions 6. The following expressions are defined for the purposes of this determination: • covered services means the provision of specified legal services by suitably qualified legal practitioners; • covered services obligation means entering into an obligation to provide covered services to members of the recipient of that obligation; • members of the recipient means individuals who have entered into an agreement with the recipient of the obligation that entitles the individual to receive future covered services; • specified legal services means the legal services as listed in the written agreement entered into between the supplier and the recipient. • covered services means the provision of specified legal services by suitably qualified legal practitioners; • covered services obligation means entering into an obligation to provide covered services to members of the recipient of that obligation; • members of the recipient means individuals who have entered into an agreement with the recipient of the obligation that entitles the individual to receive future covered services; • specified legal services means the legal services as listed in the written agreement entered into between the supplier and the recipient. 7. Other expressions in this determination have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 . Note 1: The A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 6) 2001 (in force under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999) as shown in this compilation is amended as indicated in the Tables below. Table of Instruments Title Date of FRLI registration Date of commencement Recipient Created Tax Invoice - Embedded Agreement Amending Legislative Instrument 2009 14 May 2009 (see RCTI 2009/1 ) 1 July 2009 Table of Amendments Provision affected How affected Clause 5 am. ( RCTI 2009/1 ) ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted