Issue
Is the entity, a vendor of real property, required to issue a tax invoice under subsection 29-70(2) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it applies the margin scheme to the sale of the real property and the purchaser requests a tax invoice for the supply?
Decision
No, the entity is not required to issue a tax invoice under subsection 29-70(2) of the GST Act when it applies the margin scheme to the sale of the real property and the purchaser requests a tax invoice for the supply.
Facts
The entity is a vendor of real property. In this case, the entity sold a freehold interest in land by way of a taxable supply under section 9-5 of the GST Act. The entity applied the margin scheme to the sale of the real property. The purchaser of the real property is requesting that the entity supply a tax invoice for the supply.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 29-70(2) of the GST Act, where a recipient of a taxable supply requests a tax invoice, the supplier of the taxable supply must provide the tax invoice within 28 days of the recipient's request.
However, section 29-99 of the GST Act states that there are special rules relating to tax invoices and the sale of freehold interests in land in Division 75 of the GST Act.
Subsection 75-30(1) of the GST Act provides that an entity is not required to issue a tax invoice for a taxable supply that is solely a supply of real property under the margin scheme. Subsection 75-30(2) of the GST Act deems this provision to have effect despite the rules contained in section 29-70 of the GST Act.
In this case, the entity is making a sole supply of real property to which it applied the margin scheme. As such, the entity is not required to issue a tax invoice under subsection 29-70(2) of the GST Act due to the operation of subsection 75-30(1) of the GST Act.