Document ID: chunk:federal_register_of_legislation:F2020L00044:body:0:p3
Version: federal_register_of_legislation:F2020L00044
Segment Type: other
Provision Reference: 
Character Range: 6344–9619

before and after the adjustment event.

    9.                  Use of signed statements for obtaining transaction information

    (1) The corporate card provider/acquirer may, in relation to a supplier, use the signed statement method in section 10 to calculate the decreasing adjustment, provided they have a signed statement from each supplier that:

             (a)               states the ABN of the supplier

             (b)               states the type of supplies (i.e. taxable, GST-free and/or input taxed supplies) made by the supplier, and for which the corporate card is accepted as payment

             (c)                where the supplier only makes taxable supplies - states whether or not GST is calculated at 1/11th of the price for all the taxable supplies made by the supplier, and

             (d)               provides the corporate card provider/acquirer with an undertaking the corporate card provider/acquirer will be notified when the supplier:

                  (i)                  ceases to be registered for GST, or

                  (ii)                ceases to make only taxable supplies where the GST is calculated at 1/11th of the price.

    (2) The corporate card provider/acquirer must retain the signed statement for at least 5 years after the supplier ceases their association with the corporate card provider/acquirer.

    10.              Calculating the adjustment or the estimated adjustment to GST payable using the signed statement method

    The signed statement method for calculating the amount of an adjustment or an estimated adjustment to the GST payable is as follows:

             (a)               for an adjustment to the GST payable - where the supplier has indicated on the signed statement that the supplier only makes taxable supplies where the GST is 1/11th of the price, the corporate card provider/acquirer may calculate the amount of the adjustment to the GST payable as 1/11th of the change in price, or

             (b)               for an estimated adjustment to the GST payable - where a supplier has indicated on the signed statement that the supplier makes taxable supplies where GST may not be 1/11th of the price, or the supplier is a mixed transaction supplier, the corporate card provider/acquirer may calculate the estimated adjustment amount as 1/11th of the change in price of the relevant transaction if:

                  (i)                  the corporate card provider/acquirer indicates the estimated adjustment amount for this transaction must be verified

                  (ii)                the corporate card provider/acquirer advises the cardholder to obtain an adjustment note before attributing a decreasing adjustment to a tax period (if required by subsection 29-20(3) of the GST Act), and

                  (iii)              at least one of the requirements in subparagraphs 10(b)(i) and 10(b)(ii) is prominently displayed on the corporate card statement.

    11.              Accuracy requirements for corporate card statements

    Where the corporate card provider/acquirer has reason to consider any information set out in paragraph 8(d) or an estimated GST amount is not accurate, the corporate card provider/acquirer must not include that information