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GST and Tax Invoices |
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Q1. What is a tax invoice?
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Q2. What information is required for tax invoices?
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Q3. How are tax invoices different from ordinary invoices?
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Q4. What is an adjustment note?
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Q5. Is the ACN required on tax invoices?
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| Q1. What is a tax invoice? |
Answer: A tax invoice is a document that records the supply of goods and services and complies with the information and presentation requirements specified in the GST legislation.
The supplier will generally issue a tax invoice. However, in certain circumstances, it may be more appropriate for an invoice to be issued by the recipient.
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Q2. What information is required for tax invoices?
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Answer: Where the GST-inclusive value of the supply is less than $1,000 the following information is required:- The ABN of the issuer
- The price for the supplier
- The words "tax invoice" stated in a prominent place
- The date of issue
- The name of the supplier (this may be a business or trading name)
- A brief description of each good or service supplied.
Where the GST-inclusive value of the supply is $1,000 or more the following information is required:
- The ABN of the issuer
- The price for the supplier
- The words "tax invoice" stated in a prominent place
- The date of issue
- The name of the supplier (this may be a business or trading name)
- The name of the recipient (buyer)
- The address and ABN of the recipient (buyer)
- A brief description of each good or service supplied
- The quantity or volume of each good or service supplied
There are also additional information requirements depending on whether the supply is a mixed supply (eg. a combination of taxable supplies and GST-free supplies) or purely taxable.
- Purely taxable supply and the GST payable is 1/11th of the price charged.
Must show either the words "the total price includes GST for the supply" or the GST-exclusive value and the amount of GST charged.
- Taxable supply and the amount of GST payable has been calculated in accordance with the rules for long-term accommodation in commercial residential premises. GST < 1/11 of price.
Must show the GST-exclusive value and the amount of GST charged.
- A mixed supply.
Must identify each taxable supply and the total amount of GST payable and the total amount payable. |
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| Q3. How are tax invoices different from ordinary invoices? |
Answer: Most of the information required to be shown on tax invoices will already be shown on existing documents such as invoices and receipts.
However, certain additional information must be shown, most notable, the words 'TAX INVOICE', stated in a prominent place, and the business's Australian Business Number ('ABN'). |
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Q4. What is an adjustment note?
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Answer: In general, when an business makes a taxable supply, they must charge GST and the recipient of the supply is able to claim input tax credits for GST paid.
However, after the supply has taken place, circumstances might change the amount of GST that is payable, or the amount of input tax credits that can be claimed. These changes are known as adjustment events.
When an adjustment is necessary, an adjustment note must be issued in certain circumstances. An adjustment note is basically a document that records changes to the information shown on tax invoices.
However, an adjustment note does not need to be issued if the GST exclusive value of the taxable supply is $50 or less.
The information shown on adjustment notes must comply with the requirements specified in the GST legislation. |
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| Q5. Is the ACN required on tax invoices? |
Answer: The GST law requires a tax invoice to set out the Australian Business Number of the entity that issues it. It is silent on the requirement to display an ACN.
The Corporations law requires the Australian Company Number (ACN) to appear on all "public documents" including invoices.
However, by changes made in Corporations Amendment Regulations 2000 (No.5), corporations and registered managed investment schemes are allowed to use their Australian Business Numbers (ABNs) in place of their Corporations Law registration numbers (that is, their Australian Company Number (ACN), Australian Registered Body Number (ARBN) or Australian Registered Scheme Number (ARSN).
The use of the ABN will be conditional on the last nine digits of the ABN being the same as the Corporations Law registration number.
This means that, until further notice, companies should display their ACN on all tax invoices, because tax invoices are classified as public documents. Where the ABN forms part of the ACN the ABN will comply with both requirements .
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