A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination 2012

Link to law: https://www.comlaw.gov.au/Details/F2012L00769

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Legislative Instrument
 
 A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination 2012
 
I, James O’Halloran, Deputy Commissioner of Taxation, make this determination under the following provision:
 
·         section 29-75 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
 
 
 
 
James O’Halloran
Deputy Commissioner of Taxation
 
Dated: 29 March 2012
 
 
1.            Name of Determination
This legislative instrument is the A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination 2012.
 
2.            Revocation of previous instrument
The legislative instrument A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination (No. 1) 2000 (F2006B11651) registered on 29 November 2006 is revoked on the commencement of this legislative instrument and therefore does not apply to net amounts for tax periods to which this instrument applies.
 
3.            Commencement and application of this instrument
(a)        This legislative instrument commences on 1 July 2010.
(b)        This legislative instrument specifies the other information requirements for adjustment notes and recipient created adjustment notes for the purposes of subsection 29-75(1) of the GST Act. These requirements apply in relation to net amounts for tax periods starting on or after        1 July 2010. 
(c)        A document that satisfied the information requirements of A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination (No. 1) 2000 (F2006B11651) registered on 29 November 2006 will continue to satisfy the information requirements of this legislative instrument.
 
 
4.            Legislative instrument (Who is covered by this legislative instrument)
            This legislative instrument applies to all entities that issue adjustment notes and recipient created adjustment notes under section 29-75 of the GST Act.
 
5.            Information requirements
(1)        Adjustment Note other than a recipient created adjustment note
An adjustment note, other than a recipient created adjustment note referred to in subclause (2), must contain the following information, or enough information in the adjustment note to enable the following to be clearly ascertained:
(a)       that the document is intended as an adjustment note and the effect[1] of the adjustment;
(b)       the identity[2] of the supplier or the supplier’s agent;
(c)       the identity or ABN of the recipient, the recipient’s agent,or another member of the recipient’s GST group,[3] if the adjustment note:
(i)         relates to a tax invoice showing the total price for the supply or supplies is at least $1,000 (or such higher amount as the regulations specify); or
(ii)        arises out of an adjustment event where a supply that was not taxable becomes taxable and the price of the supply is at least $1,000;
(d)       the issue date of the adjustment note;
(e)       a brief explanation of the reason for the adjustment;
(f)        the amount of the adjustment to the GST payable;[4]
(g)       the difference between the price of the supply before the adjustment event and the price of the supply after the adjustment event. If the supply is not a wholly taxable supply, the price of the supply is referable to that part of the supply that is affected by the adjustment event and that is, or becomes, taxable.
 
(2)        Recipient created adjustment note
A recipient created adjustment note must contain the following information, or enough information in the recipient created adjustment note to enable the following to be clearly ascertained:
(a)       that the document is intended as a recipient created adjustment note and the effect[5] of the adjustment;
(b)       the identity and ABN of the supplier or the supplier’s agent;
(c)       the identity[6] of the recipient or the recipient’s agent;
(d)       the issue date of the adjustment note;
(e)       a brief explanation of the reason for the adjustment;
(f)        the amount of the adjustment to the GST payable;[7]
(g)       the difference between the price of the supply before the adjustment event and the price of the supply after the adjustment event.  If the supply is not a wholly taxable supply, the price of the supply is referable to that part of the supply that is affected by the adjustment event and that is, or becomes, taxable.
 
(3)        Statement as an alternative to the requirement in paragraph 5(1)(f) or 5(2)(f), as applicable
            If the amount of the GST payable is 1/11th of the price, a statement can be included as an alternative to the requirement at paragraph 5(1)(f) or 5(2)(f).  The statement must make it clear that the difference in the price of the supply includes GST.
Note: all other requirements in subclause 5(1) or 5(2), as applicable, must be satisfied.
 
(4)        Concessional treatment
A document issued by an entity to another entity may be treated by the other entity as an adjustment note for the purposes of the GST Act if:
(a)        it would comply with the requirements for an adjustment note but for the fact that it does not contain certain information; and
(b)        all of that information can be clearly ascertained from other documents given by the entity to the other entity.
 
6.            Definitions
(1)            Recipient created adjustment note means, for the purpose of this determination, an adjustment note issued by a recipient in the circumstances referred to in subsection 29-75(2) of the GST Act.
(2)            Other expressions in this determination have the same meaning as in the GST Act.
 
 

[1] For example, whether it is a positive or negative amount, or a debit or credit amount, to the supplier or the recipient.
[2] Paragraph 29-75(1)(b) of the GST Act also requires the adjustment note to contain the ABN of the entity that issues it, either the supplier or the supplier’s agent.
[3] Where the document was taken to be a tax invoice under the circumstances in subsection 48-57(1).
[4] If the amount of the GST payable is 1/11th of the price, see the alternative to this requirement at subclause 5(3).
[5] For example, whether it is a positive or negative amount, or a debit or credit amount, to the supplier or the recipient.
[6] Paragraph 29-75(1)(b) of the GST Act also requires the adjustment note to contain the ABN of the entity that issues it.  In the case of a recipient created adjustment note, this is either the recipient or the recipient’s agent.
[7] If the amount of the GST payable is 1/11th of the price, see the alternative to this requirement at subclause 5(3).