Issue
Does Entity A, a supplier of services, also issue a tax invoice for the purposes of paragraph 29-70(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) where Entity B, on behalf of Entity A, prepares and issues a single invoice for the taxable supplies that each entity makes separately to the same customers?
Decision
Yes. Entity A also issues a tax invoice for the purposes of paragraph 29-70(1)(a) of the GST Act.
Facts
Entity A and Entity B make separate taxable supplies of certain services to the same customers. Both entities are registered for goods and services tax (GST).
Entity A and B enter into a written agreement for the preparation and issuance of invoices. Under this agreement, entity B prepares and issues a single invoice on behalf of Entity A and for itself for the taxable supplies that each entity separately makes to the same customer. Entity B does not charge a fee for preparing and issuing the invoices.
The invoice shows the name and Australian business number (ABN) of both entities. The invoice satisfies the requirements of paragraphs 29-70(1)(b), 29-70(1)(c), 29-70(1)(d) and 29-70(1)(e) of the GST Act and is not a recipient created tax invoice.
Entity A does not issue its own invoice in respect of the taxable supplies that it makes and that are invoiced along with the taxable supplies made by Entity B.
Reasons for Decision
Subsection 29-70(1) of the GST Act lists the requirements of a tax invoice. Paragraph 29-70(1)(a) of the GST Act provides that a tax invoice for a taxable supply must be issued by the supplier, unless it is a recipient created tax invoice.
The term 'supplier' is not defined in the GST Act. However, in the context of section 9-5 of the GST Act, an entity that makes a taxable supply is treated as the supplier. As Entity A and Entity B both make separate taxable supplies, they are the suppliers for the purposes of paragraph 29-70(1)(a) of the GST.
However, as Entity B prepares and issues the invoice, it needs to be determined whether the tax invoice is also 'issued' by Entity A.
Under the written agreement, Entity B physically prepares and issues the invoice on behalf of entity A. Entity B does not charge a fee to entity A for this service.
The written agreement does not alter Entity A's relevant obligations under the GST Act. Further, Entity A's name and ABN appear on each invoice issued by Entity B. For the purposes of determining whether Entity A has also 'issued' the invoice, it is not relevant that Entity B's name, ABN and details of Entity B's taxable supplies are also shown on the invoice.
By entering the written agreement with Entity B and because Entity A's relevant details are on the invoice, Entity A also issues a tax invoice for the purposes of paragraph 29-70(1)(a) of the GST Act. Note 1: Similarly, in the above circumstances, Entity A will also be treated as issuing an adjustment note for the purposes of paragraph 29-75(1)(a) of the GST Act. Note 2: Goods and Services Tax Ruling GSTR 2000/17 Goods and services tax: tax invoices explains the requirements for a 'tax invoice'. Note 3: Both Entity A and Entity B have a GST liability for their respective taxable supplies made to customers that are invoiced by Entity B.