NAT 12358-08

NAT 12358-08.2011

Fact sheet for GST-registered businesses

Valid tax invoices and GST credits

Terms we use

When we say:

n GST credit, we mean the GST term input tax credit

n sale and purchase, we mean the GST terms supply and acquisition.

Tax invoices

Tax invoices are important documents for the operation of the GST system. Tax invoices must contain certain information to be valid. These requirements are detailed below (see ‘What is a valid tax invoice?’ in the next column).

You must issue a tax invoice for any taxable sales you make of more than $82.50 (including GST), where the purchaser requests it.

If you make taxable purchases for business purposes, you can use the tax invoices you receive to claim the correct amount of GST credits for those purchases.

Claiming GST credits

To claim a GST credit for purchases that cost more than $82.50 (including GST), you must be registered for GST and have a valid tax invoice or recipient created tax invoice (RCTI). If you use an incorrect or incomplete tax invoice to claim a GST credit, the GST credit may not be allowed.

To claim GST credits for purchases that cost $82.50 or less (including GST), you must keep documents such as cash register dockets, receipts or invoices to support your claims.

You must also keep your tax invoices and other GST records for five years.

Your supplier must be registered for GST before you can claim a GST credit on a purchase. If you are in doubt, you can:

n ask if the supplier is registered for GST

n check the Australian Business Register (ABR) at www.abr.gov.au

n phone 13 72 26 to confirm the supplier’s Australian business number (ABN) is valid

n phone us on 13 28 66 for advice.

There is a four-year time limit in claiming GST credits.

For more information, refer to Time limits on GST refunds (NAT 11645).

What is a valid tax invoice?

A valid tax invoice is a document that meets all of the following requirements:

n it is issued by the supplier, unless it is an RCTI (in which case it is issued by the recipient)

n it contains enough information to enable the following to be clearly identified

– the supplier’s identity and ABN

– a brief description of what is sold, including the quantity (if applicable) and the price of what is sold

– the extent to which each sale is a taxable sale – this can be shown separately or, if the GST to be paid is exactly one-eleventh of the total price, as a statement such as ‘total price includes GST’

– the date the document is issued

– the amount of GST (if any) payable for each sale

– if the document was issued by the recipient and GST is payable for any sale – that the GST is payable by the supplier

– that the document was intended to be a tax invoice or an RCTI if it was issued by the recipient.

In addition, if the total price of the sale is at least $1,000 or if the document was issued by the recipient, the recipient’s identity or ABN must be able to be clearly identified.

Valid tax invoices and GST credits

What if a document does not contain all of the required information?

If a document issued by a supplier does not contain all of the required information, you may treat that document as a valid tax invoice if the missing information can be clearly identified from other documents provided by the supplier.

Terms such as ‘total price includes GST’ or similar wording are not sufficient for invoices for both taxable sales and either a GST-free or input taxed sales.

For more information about tax invoices, refer to:

n GST for small business (NAT 3014)

n GSTR 2000/17 Goods and services tax: tax invoices.

What is an RCTI?

An RCTI is a tax invoice that is issued by the recipient of the

goods and/or services rather than the supplier. RCTIs can only

be issued by a recipient if:

n the recipient and the supplier are both registered for GST

n the sales for which the recipient can issue an RCTI are

agreed to in writing by the recipient and the supplier either

in a separate written agreement specifying the supplies to

which each agreement relates or embedding this information

or specific terms, as outlined in the legislative instrument, in

the tax invoices they issue

n the agreement is current and effective when the RCTI

is issued

n the goods or services being sold under the agreement

are of the type that we have determined can be invoiced

using RCTIs.

W e have made legislative determinations about the

types of sales of goods or services that can be invoiced

using RCTIs. For more information:

n phone us on 13 28 66

n visit our legal database at law.ato.gov.au and search

using the term ‘RCTI’.

What is a valid RCTI?

To be valid, a RCTI must contain sufficient information to enable

the following to be clearly identified:

n that the document was intended to be an RCTI

n the identity and ABN of the supplier

n the identity or ABN of the recipient

n what is sold, including the quantity (if applicable) and the price

n the extent to which each sale is a taxable sale

n the date of issue of the document

n the amount of GST (if any) payable for each sale

n if GST is payable for any sale - that the GST is payable by

the supplier.

The recipient must:

n issue the original or a copy of the RCTI to the supplier within

28 days of when the sale is made or when the value of the

sale is determined

n retain the original or a copy of the RCTI

n reasonably comply with its obligations under the taxation laws

n not issue a document that would otherwise be an RCTI, on or

after the date when they or the supplier has failed to comply

with any of the requirements of RCTIs.

For more information about RCTIs, refer to GSTR

2000/10 Goods and services tax: recipient created tax

invoices.

Valid ta x invoices and GST credits

How do you obtain a tax invoice for your purchase?

If you buy taxable goods or services that cost more than $82.50 (including GST), your supplier must provide you with

a tax invoice within 28 days after you request one.

Tax invoices that contain incorrect or incomplete information, where you can not work out the missing information from other

documents issued by the supplier are not considered to be valid. You should ask your supplier to replace it with a complete

and correct tax invoice.

If you wish to claim a GST credit but your supplier does not give you a valid tax invoice within the 28 day period, you can seek

our permission to claim the GST credit by providing us with the following information:

n your name, contact details and ABN

n documents relating to the purchase

n the name, address and ABN (if known) of the supplier

n the nature, purpose and quantity of the purchase

n the amount paid or payable, and the amount of GST included

n the steps you’ve taken to obtain a tax invoice.

To request our permission to claim a GST credit, you should:

n email us at GSTmail@ato.gov.au

n write to GST General Technical Advice, PO Box 9935

in your capital city.

What if you claimed a GST credit without having a valid tax invoice?

If you claimed a GST credit without having a valid tax invoice, you can write to us explaining your circumstances and ask that

the tax invoice be treated as valid.

If we discover a claim of this nature, for example during an audit, we will usually treat the tax invoices as valid and allow your claim if you:

n are entitled to the GST credit

n have made a genuine attempt to comply with the requirement to hold a tax invoice.

How does the ATO deal with missing or invalid tax invoices?

We issued a practice statement that explains when we will treat a document that is not a tax invoice as a valid tax invoice.

If you claim a GST credit without a tax invoice or with an invalid tax invoice, we may either:

n treat your tax invoice as being valid

n treat some other document as a valid tax invoice.

Our decision to allow your claim will depend on the details you provide.

For more information about how we deal with GST credits claimed with invalid or missing tax invoices, refer to PS LA 2004/11 The Commissioner’s discretions to treat a particular document as a tax invoice or adjustment note.

Can you get a previous tax invoice decision reviewed?

The practice statement applies to decisions we made about tax

invoices from 1 July 2000. If you claimed a GST credit after 1

July 2000 and we disallowed the claim because you didn’t have

a valid tax invoice, you can request a review if you believe our

decision was not made in accordance with the policy in the

practice statement.

To apply for a review of a tax invoice decision,

complete the form Request for review of tax invoice

decision (NAT 12381).

You cannot amend a disallowed claim of this nature by:

n revising your activity statement

n using the process described in Correcting GST mistakes

(NAT 4700).

Valid ta x invoices and GST credits

Commonwealth of Australia, 2011

You are free to copy, adapt, modify, transmit and distribute this material as

you wish (but not in any way that suggests the ATO or the Commonwealth

endorses you or any of your services or products).

Published by

Australian Taxation Office

Canberra

August 2011

JS 20422

M ore information

For a copy of our publications or for more information,

you can:

n visit our website at www.ato.gov.au

n phone us on 13 28 66

n write to us at PO Box 9935 in your capital city.

If you do not speak English well and need help from the

ATO, phone the Translating and Interpreting Service on

13 14 50.

If you are deaf, or have a hearing or speech impairment,

phone the ATO through the National Relay Service (NRS)

on the numbers listed below:

n TTY users, phone 13 36 77 and ask for the ATO number

you need

n S peak and Listen (speech-to-speech relay) users,

1300 555 727 and ask for the ATO number you need

n internet relay users, connect to the NRS on

www.relayservice.com.au and ask for the ATO

number you need.

Our commitment to you

We are committed to providing you with accurate, consistent

and clear information to help you understand your rights and

entitlements and meet your obligations.

If you follow our information in this publication and it turns out

to be incorrect, or it is misleading and you make a mistake as

a result, we must still apply the law correctly. If that means you

owe us money, we must ask you to pay it but we will not charge

you a penalty. Also, if you acted reasonably and in good faith we

will not charge you interest.

If you make an honest mistake in trying to follow our information

in this publication and you owe us money as a result, we will

not charge you a penalty. However, we will ask you to pay

the money, and we may also charge you interest. If correcting

the mistake means we owe you money, we will pay it to you.

We will also pay you any interest you are entitled to.

If you feel that this publication does not fully cover your

circumstances, or you are unsure how it applies to you,

you can seek further assistance from us.

We regularly revise our publications to take account of any

changes to the law, so make sure that you have the latest

information. If you are unsure, you can check for more recent

information on our website at www.ato.gov.au or contact us.

This publication was current at August 2011.

If I Have An ACN, Do I Still Need An ABN For My Company?

An ABN (Australian Business Number) is provided by the Australian Business Register.

An ACN (Australian Company Number) issued by ASIC.

You can run a business (with a business name) just with an ABN and do not need a ACN where as if you register as a company (that trades & claims GST) you will need an ABN to trade under that name. There is also variables on this such as if you or your business does not earn over $75k you will not require an ABN number.

http://www.abr.business.gov.au/Faq.aspx

ABN & business related questions

What is an ABN?

The Australian Business Number (ABN) was introduced on 1 July 2000 to enable businesses in Australia to deal with a range of government departments and agencies using a single identification number. The ABN is a public number which does not replace your tax file number.

ABN registration details become part of the Australian Business Register (ABR), which the ATO maintains on behalf of the Commonwealth. You can access the publicly available information contained in the ABR through the ABN Lookup website.

How do I apply for an ABN?

You can apply for an ABN online from the ABR website.

Criterion 2

The entity is entitled to an ABN if it can answer ‘Yes’ to the following statements:

its activity is carried out in the:
- form of a business
- nature of trade, or
- form of a regular or continuous grant of a lease, licence or interest in property
its activity is carried out in Australia or it makes supplies that are connected with Australia
its activity is not a private recreational pursuit or hobby.

If you require any assistance with your application or have any queries about its progress, please contact the ABR .

What is the status of my ABN registration?

Please contact the ABR for information about the progress of your ABN application.

How long does it take to get an ABN?

Provided you supply all the information required, you will usually receive on-line notification of your ABN immediately upon completion of the ABN application.

If you omit information or it cannot be verified an ABN will not be allocated immediately. Under these circumstances your application will be processed manually and can take up to 28 days. To check the progress of your application please contact the ABR .

How much does it cost to get an ABN?

The ATO does not impose a fee for applying for an ABN online or by paper application. If you consult a tax agent to complete an application for you they may charge a fee for their services. Otherwise, there is no cost.

How do I reactivate/cancel my ABN?

Reactivate your ABN
- If your ABN has been cancelled, you can apply to reactivate it. Please refer to How do I reactivate my ABN? on the ABR website for more information.
Cancel your ABN
- You must inform the Australian Business Register (ABR) if you have ceased trading or your business has been sold. Please refer to Application to cancel registration on the ATO website for more information.

What is the difference between an 'active' ABN and a 'cancelled' ABN?

An ABN with a status of 'active' means that the registration is current.

An ABN with a status of 'cancelled' means that the ABN has been deactivated and is no longer current.

Can I use the same ABN for more than one business?

You can conduct any number of businesses/activities under the same ABN provided they all operate under the same business structure. If your second or subsequent business operates under a different structure you need to apply for a separate ABN for these new businesses.

Can I replace an ABN?

An ABN may be replaced or changed at the discretion of the Registrar of the ABR.

Please refer to Replacement of an ABN on the ABR website for more information.

What is an ACN or ARBN?

Australia Company Numbers (ACNs) and Australian Registered Body Numbers (ARBNs) are 9 digit numbers issued by Australian Securities & Investments Commission (ASIC).

An ACN is issued to an entity when it registers as a company under corporations law.
An ARBN is issued to an entity when it registers with ASIC other than as a company, for example, foreign companies and registrable Australian bodies.

ACNs and ARBNs must conform to the Australian Company Number (ACN) check digit to be valid. For more information about companies and company structures please visit ASIC .

How often is ABN Lookup updated?

ABN Lookup receives updates from the Australian Business Register (ABR) every hour. However, the information provided from the ABR is dependent on the business entities updating their details when they change. Therefore we are unable to guarantee the information that is provided on the ABN Lookup website is accurate, up to date or complete.

If you have doubts over the currency of information provided on the ABN Lookup website, we recommend that you verify the information from other sources.

Can you provide me with contact details for a business?

Under tax legislation, ABN Lookup only contains the public information provided by a business when it registers for an ABN. The public information gives the postcode and state/territory in which the business is located, but does not include the address, email, telephone or other contact details.

Where can I find the details about a company?

The Australian Securities and Investments Commission (ASIC) is responsible for regulating companies and financial institutions. A search of the ASIC National Names Index will provide some basic information about a company. For more detailed information you may need to approach a business information broker. There is a listing of recommended business information brokers on the ASIC website.

Can I obtain a copy of our certificate of incorporation?

The ABN Lookup database does not hold information on certificates of incorporation.

Each state and territory has legislation that allows various kinds of non-profit bodies to become bodies corporate. Bodies incorporated under these Acts are normally community, cultural, educational, sporting or charitable organisations. Please contact the Incorporated Association Register in your state/territory Office of Fair Trading or Consumer Affairs for more information.

How do I register my business trading name?

How you register your business trading name depends on the type of business you conduct. Please refer to Register your business name for more information regarding business name registrations in your state.

How do I add additional business trading names to my ABN?

Providing that the second or subsequent business is conducted under the same business structure (e.g. same partners) you can use the existing ABN.

To add additional business trading names to your ABN you need to notify the ABR of your Change of registration details .

Someone else is using my business trading/company name on ABN Lookup. What can I do?

A name registered to you may appear against another ABN record because the ABR does not restrict entry to registered names only. The ABN Application relies on 'self assessment' and the ABR generally accepts whatever names are provided by an applicant.

Use/misuse of registered business names is a state government issue. Please refer to Register your business name for more information regarding business name registrations in your state.

What does it mean if the details of an ABN are suppressed

A person can apply to have details relating to an entity in the Australian Business Register (ABR) suppressed. For example, where:

a person believes that, if the details appear on the public register, they may cause harm to them or those associated with them. For example, where domestic abuse and violence orders are in place
the public availability of ABR details may endanger a person who is employed in certain fields. For example, psychiatric doctors dealing with dangerous patients, or
the Registrar of the ABR determines that disclosing certain details are not in the public interest.

A written request for suppression of ABR details must be accompanied by a statutory declaration, giving the reasons for the suppression, and the relevant supporting documentation.

For more information, please see Who can apply to have their ABN details suppressed on the ABR web site.

Searching ABN Lookup

What information is available on ABN Lookup?

Only companies and businesses registered with an ABN will appear on ABN Lookup.

The ABN Lookup website holds only the publicly available information about a business including:

Australian Business Number (ABN) and status
Entity names and business trading names
State/territory and postcode of the main business location
Australian Company Number (ACN), Australian Registered Body Number (ARBN), or Australian Registered Scheme Number (ARSN)
Goods & Services Tax (GST) registration
Deductible Gift Recipient (DGR) registration
Charitable tax concessions

The ABN Lookup website does not hold non-public ABR data such as:

Detailed contact information
Industry code

Why can't I find the name I am looking for?

The most common reason for not finding a name on ABN Lookup is that the Australian Business Register (ABR) has not been notified of a change of details. ABN Lookup contains the public information provided at the time ABN registration and any subsequent update. To add additional business trading names to an ABN you need to notify the ABR of a Change of registration details .

Another common reason for not finding a name on ABN Lookup is the search criteria used. As ABN Lookup holds almost 20 million names, searching for single word names such '1', 'Jane', 'Smith', 'Bob' or 'Mark' can be problematic. The best way to find a name is to include as much of the name as you know.

Where a name search does not complete within a reasonable period, you will get a message to either search again using a 'narrow' search or to use the 'Advanced Search' to add additional words. If the name you are looking for is a single common name, using the 'narrow' search option will generally find it. If the name consists of several words, using the 'Advanced Search' link to add just one extra word will improve your results.

Why doesn't my ABN appear on ABN Lookup?

Your ABN will automatically appear on ABN Lookup on the day it becomes active. However, if you contact ABN Lookup and advise us of your ABN, we can manually retrieve it from the ABR prior to this date. It will then appear on the ABN Lookup website.

What do the gold star and half star mean?

The stars on the search results page provide a visual cue as to how well your search criteria match the results record. Results are ordered by relevance with the closest matches appearing at the top of the list. A gold star means an exact match whereas a "half" star is a close match.

What is the maximum number of records returned by a search?

The maximum number of records returned for any search is 200, sorted with the closest match at the top of the list.

ABN Lookup web services

Why should I use the ABN Lookup web services?

The ABN Lookup web services allow you to easily incorporate ABN information and search capabilities into your own applications. The web services also provide greater functionality and more options than are available through the HTML interface. For example, the name search method allows you to control how many matching names are returned by the search. As there is no upper limit, you are not restricted to the top 200 matching names imposed through the HTML interface.

Furthermore, additional search options are available through the web services such as retrieving ABNs for a selected postcode or for a particular entity type or are registered for GST etc.

How do I register for access to the ABN Lookup web services?

You can register online for access to the ABN Lookup web services.

Once we have received your application we will e-mail you an authentication GUID (Globally Unique IDentifier).

What is a GUID? Do I need one?

GUID stands for Globally Unique Identifier. When you register for access to the ABN Lookup web services you will be assigned a GUID. A valid GUID is required to access the ABN Lookup web services.

Is there any sample code available for accessing the web services?

From our Sample code page you can download and trial a number of working applications that interface with the ABN Lookup web services. The sample applications cover a number of different langauages and platforms including Visual Basic, C#, Java, php, Microsoft Access and Excel.

To run the sample applications you will need to be a registered user of the ABN Lookup web services.

Are there working examples of the web services that I can see?

Download the free and very useful ABN Lookup tools to see working examples of the web services in action. Microsoft Excel and Java versions of the tools are available.

What information about an ABN is available through the ABN Lookup web services?

Like the ABN Lookup web site, the web services provide access to only the publicly available information about a business.

Can I use the ABN Lookup web services to apply for an ABN?

The ABN Lookup web services cannot be used to apply for an ABN. Please see How do I apply for an ABN above.

Can I use the ABN Lookup web services to update my ABN details?

The ABN Lookup web services cannot be used to update ABN details. To update ABN details you need to notify the ABR of your Change of registration details .