Fact sheet and form                                                                            Business

Statement by a supplier

(reason for not quoting an ABN to an enterprise)

Purpose

This fact sheet provides guidance on:

n pay as you go (PAYG) withholding from payments for supplies, andn the requirements for quoting an Australian businessnumber (ABN). When you pay suppliers who provide goods or services to your business, those suppliers generally need to quote an ABN. They can quote their ABN on an invoice or some other document that relates to the goods and/or services they provide. If any supplier does not provide their ABN, you may need to withhold an amount from the payment for that supply. This is sometimes referred to as ‘No ABN withholding’.

Withholding from paymentsGenerally, you must withhold 46.5% of the total payment fora supply unless:

n you have an invoice or some other document relating to the supply on which the supplier’s ABN is quoted

n the ABN of the supplier’s agent is quoted (if the supply is made through the agent), orn one of the exceptions to withholding applies or the supplieris not entitled to an ABN.You may also be required to withhold 46.5% from the payment if you have reasonable grounds to believe that the ABN quoted is invalid (for example, it belongs to another entity).

Quoting an ABN

A supplier must quote their ABN by the time the payment is made to prevent 46.5% of that payment being withheld.A supplier may quote their ABN on an invoice or other document relating to the supply. Documents on which an ABN may be quoted include:

n invoices

n quotes

n renewal notices (such as for insurance or subscriptions)

n order forms

n receipts

n contracts or lease documents

n letterheads, emails or internet records (web pages)

n records of over-the-phone quotation of an ABN and/orn catalogues (and other promotional documents) the supplier produces. You must keep this information with other records relating to the supply. ���������������������������������������������������You do not have to check whether the ABN is valid. However, if you suspect that the ABN quoted does not belong to the supplier or the supplier’s agent, you can check it by either visiting www.abr.business.gov.au or phoning the Tax Office on 13 72 26, 24 hours a day, seven days a week.