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Under the A New Tax System (Goods and Services Tax) Act 1999 ('GST Act'), the Commissioner may determine circumstances in which you may claim an input tax credit without holding a tax invoice.C4 [F1] This Ruling explains the Commissioner's determination in relation to documents (transitional documents) that issue before 1 July 2000 for taxable supplies made on or after that date.

The Ruling also explains the requirement for an adjustment note relating to a supply for which the supplier issues a transitional document.

Certain terms used in this Ruling are defined or explained in the Definitions section of the Ruling. These terms, when first mentioned elsewhere in the body of the Ruling, appear in bold type.

All legislative references in this Ruling are to the GST Act unless otherwise stated.

This Ruling applies [to tax periods commencing] both before and after its date of issue. However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). Note 1: the Addendum to this Ruling that issued on 1 March 2006, explains our view of the law as it applied from 22 February 2005. Note 2: the Addendum to this Ruling that issued on 11 July 2007, explains our view of the law as it applied from 1 July 2007. Note 3: the Addendum to this Ruling that issued on 31 October 2012, explains our view of the law as it applied from 1 July 2010.

Generally, you must hold a tax invoice to claim an input tax credit for a creditable acquisition in your Business Activity Statement (BAS).C4 [F2] However, you do not need a tax invoice if: • the value of the taxable supply is $75 or less;C4 [F3] • you are claiming an input tax credit for a creditable importation ;C4 [F4] • the goods and services tax (GST) on the taxable supply is payable by the recipient because of section 15C of the A New Tax System (Goods and Services Tax Transition) Act 1999 C4 [F4A] (GST Transition Act); or • a determination by the Commissioner under subsection 29-10(3) applies to your circumstances.C4 [F5]

The input tax credit for a creditable acquisition is usually the amount of GST that is payable by the supplier.C4 [F6] If an acquisition is partly creditable , you will need to apportion the input tax credit.C4 [F7] Your input tax credits are offset against any GST payable to produce a net amount for a particular tax period.C4 [F8]

The GST Act requires that a tax invoice must:C4 [F9] • be issued by the supplier (unless the Commissioner determines that it can be of a class issued by the recipient); • set out the Australian Business Number (ABN) of the entity that issues it; • set out the price for the supply; • contain such other information as the RegulationsC4 [F10] specify; and • be in the approved form. The supplier must issue a tax invoice within 28 days of a request by the recipient of the supply.C4 [F11]

In addition, a tax invoice for a taxable supply that is made through a GST branch must show the GST branch registration number of the branch.C4 [F12]

GSTR 2000/1 explains the requirements for an adjustment note.

This Ruling replaces GST Bulletin, GSTB 1999/1- Guidelines for 'tax invoices' issued by suppliers before 1 July 2000. Accordingly, that Bulletin is withdrawn from the issue date of this Ruling .

The Commissioner has determined under subsection 29-10(3) that you are entitled to an input tax credit for a creditable acquisition without holding a tax invoice in certain circumstances. A copy of the determination is attached as a Schedule to this Ruling. The entitlement arises when: (a) you or your agent holds a document (a transitional document) issued before 1 July 2000 for a taxable supply made on or after that date; and (b) the document contains the following information: • the name or business name of the supplier, or the supplier's agent; • the address or ACN of the supplier, or the supplier's agent; • the date of issue; and (c) the document shows either or both: • the price of the taxable supplyC4 [F13] and a statement indicating that the price includes GST; or • the amount of the GST payable.

Your industry association sends you a notice to renew your annual membership. The notice is for membership during the period 1 January 2000 to 31 December 2000.C4 [F14] The notice shows the date of issue, the association's name and address, and the total membership fee payable of $384.40.

GST is payable by the industry association for the supply of the membership for the period 1 July 2000 to 31 December 2000.C4 [F15] The price of $384.40 is made up as follows: - price of the supply before 1 July 2000 = $182.00, and - price of the supply after 1 July 2000 = $202.40 ($184.00 plus GST of $18.40)

To claim an input tax credit, you will not need a tax invoice if the notice that you received shows either or both: • the price of $202.40 for that part of the supply that is made from 1 July 2000 to 31 December 2000, and indicates that the price includes GST; or • the amount of $18.40 GST that is payable. You need to hold this transitional document when you lodge your first BAS.

Some suppliers have previously issued documents that contain a formula to work out the price of the taxable supply or the GST payable. For example, the GST payable may be expressed as a percentage of the price. You can claim an input tax credit on the basis of such a document, providing it issued before 1 January 2000.C4 [F16]

This saves suppliers from having to reissue documents for this period only. However, the Commissioner does not accept that a formula satisfies the requirement to state the price or the GST amount for documents issued on or after 1 January 2000.

Where you acquire a taxable supply for which the GST payable is less than 1/11th of the price, you must hold a transitional document that satisfies paragraphs 12(a) and (b) of this Ruling and shows the amount of GST payable, if you wish to claim an input tax credit without a tax invoice.

GST is less than 1/11th of the price in limited circumstances, for example with an insurance premiumC4 [F17] or a supply of long-term accommodation in commercial residential premises.C4 [F18]

A document will also satisfy the requirements of paragraph 12 if it is issued by your insurance broker and shows the insurance broker's details instead of those of the insurance provider. This is consistent with section 153-25, which has the effect of deeming the insurance broker to be the agent of the insurer for the purposes of Division 153.

You are also entitled to an input tax credit without a tax invoice if you have a document that issued before 1 July 2000 together with another document(s), that contain the information referred to in paragraph 12 above.

You lease business premises under an agreement made before 8 July 1999 (the date the A New Tax System (Goods and Services Tax Transition) Act 1999 received Royal Assent) that contains a review opportunity on 1 July 2001. On or after 1 July 2001, the lessor issues a document that confirms the revised rent and states that it includes GST. You can claim an input tax credit (without having a tax invoice) if this document and the original lease agreement together contain the information specified in paragraph 12.

This Ruling also applies to documents you issue as the recipient of the taxable supply, providing you document falls into a class of tax invoices issued by a recipient that the Commissioner determines. Where you issue such a document for the supply that has the necessary information specified in paragraph 12, you may claim an input tax credit if you also hold a copy of the document.C4 [F19]

Adjustment events may occur that affect a taxable supply for which a transitional document was issued. The documents that are required in relation to these events are described in paragraphs 25 to 28.

An adjustment event relating to a taxable supply will only result in an adjustment if the GST or input tax credit has been attributed in your BAS.C4 [F20] If there is no adjustment, there is also no requirement to issue an adjustment note.

However, the original transitional document issued by the supplier may not satisfy paragraph 12 because it does not show the new price and/or GST amount for the taxable supply. Therefore, the Commissioner has determined under subsection 29-10(3), that you may claim an input tax credit if you hold documents that together satisfy the requirements of paragraph 12. You may hold the original document issued by the supplier, together with a document (such as a credit note) that gives details of the adjustment event.

If, as a supplier, you issue transitional documents before 1 July 2000 that meet the requirements of this Ruling, your recipients can claim an input tax credit without holding a tax invoice. Therefore, you may not have issued or have been requested to issue a tax invoice for these supplies.

In this case, you will have to issue any adjustment notes that relate to these supplies only when requested by the recipient.C4 [F21] Where the recipient does not request an adjustment note, you are not required to issue one if you did not issue or were requested to issue a tax invoice.C4 [F22]

The Commissioner recognises that because subsection 29-10(3) requires you to have a tax invoice before you can claim your input tax credit, this requirement may cause compliance difficulties for suppliers during the transitional period.

In particular, many suppliers have previously issued documents for supplies that span 1 July 2000 (including lease agreements and insurance and subscription renewal notices). Most of these documents will not be tax invoices because the information required by the GST Act is missing. For example, until suppliers have an ABN, they will not be able to issue a tax invoice.

Because of these special circumstances, the Commissioner will not require you to hold a tax invoice for these acquisitions. Instead, you only need a transitional document that has the basic information referred to in paragraph 12. This determination saves suppliers from the extra cost of producing another document that has all the information required for a tax invoice (see paragraphs 8 and 9).

The following terms are defined for the purposes of this ruling. Terms with asterisks are defined in section 195-1 of the GST Act:

You make a creditable acquisition if: (a) you acquire anything solely or partly for a * creditable purpose ; and (b) the supply of the thing to you is a *taxable supply; and (c) you provide, or are liable to provide, *consideration for the supply; and (d) you are *registered, or *required to be registered.C4 [F23]

You make a creditable importation if: (a) you import goods solely or partly for a *creditable purpose; and (b) the importation is a *taxable importation; and (c) you are *registered, or *required to be registered.C4 [F24]

You acquire a thing for a creditable purpose to the extent that you acquire it in *carrying on your *enterprise. However, you do not acquire the thing for a creditable purpose to the extent that: (a) the acquisition relates to making supplies that would be *input taxed; or (b) the acquisition is of a private or domestic nature.C4 [F25]

You import goods for a creditable purpose to the extent that you import the goods in *carrying on your *enterprise. However, you do not import the goods for a creditable purpose to the extent that: (a) the importation relates to making supplies that would be *input taxed; or (b) the importation is of a private or domestic nature.C4 [F26]

Entity means any of the following: (a) an *individual; (b) a body corporate; (c) a corporation sole; (d) a body politic; (e) a *partnership; (f) any other unincorporated association or body of persons; (g) a trust; (h) a *superannuation fund.C4 [F27]

You are entitled to an input tax credit for any *creditable acquisition or *creditable importation that you make.C4 [F28]

Your net amount is the difference between your total GST payable and your total input tax credits for a tax period.C4 [F29] It can be increased or decreased by adjustments arising in the same tax period. You include your net amount for a tax period in your BAS.

In relation to an *acquisition, partly creditable has the meaning given by 11-30 (section 70-20 also applies to a reduced credit acquisition). Under subsection 11-30(1): An acquisition that you make is partly creditable if it is a *creditable acquisition to which one or both of the following apply: (a) you make the acquisition only partly for a creditable purpose; (b) you provide, or are liable to provide, only part of the *consideration for the acquisition.

Below is a detailed contents list for this Ruling: Paragraph What this Ruling is about 1 Date of effect 5 Background 6 Previous Ruling 11 Ruling 12 When a tax invoice is not required 12 Example 13 Formula for the price of the taxable supply or the GST payable 16 Supplies for which the GST payable is less than 1/11th of the price 18 Insurance supplies 20 Multiple documents 21 Example 22 Recipient created documents 23 The requirements for an adjustment note 24 Adjustment events for which there is no adjustment 25 Adjustment events which results in an adjustment 27 Explanations 29 Definitions 32 Creditable acquisition 33 Creditable importation 34 Creditable purpose 35 Entity 37 Input tax credit 38 Net amount 39 Partly creditable 40 Detailed contents list 41