In certain circumstances, it may be more appropriate for Monash University ("Monash"), as the recipient (buyer) of a service, to raise a tax invoice, rather than the supplier. This might be appropriate, for example, for royalty payments when Monash determines the royalty payment based on sales data provided to it by a publisher. In such a case it is possible that Monash (the recipient of the supply) could issue a recipient created tax invoice (RCTI).
Where suppliers would like Monash to issue RCTIs on their behalf they must approach Monash for formal approval. The following requirements must be satisfied for an RCTI arrangement to be considered:
- the supplier and the recipient (Monash) must be registered for GST
- Monash must issue a copy of the RCTI to the supplier and must retain the original
- Monash must issue an adjustment note to the supplier in relation to adjustment events
- the supplier must not issue tax invoices or adjustment notes
- there must be a written agreement in place between Monash and the supplier which is current and effective when the RCTI is issued.
There are only limited circumstances where Monash would agree to enter into such an arrangement. Where approval has been given for Monash to enter into an RCTI arrangement with with a supplier (vendor), Monash will raise the RCTI and send the original to the supplier within 28 days of raising it. The RCTI will contain all information required by the ATO ruling issued on RCTIs.
For more information on RCTIs please refer to the following ATO ruling: 2000/10 Goods and services tax: recipient created tax invoices.
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