A New Tax System (Goods and Services Tax) Recipient Created Tax Invoice Determination RCTI 2005/1
      I, Neil Edward Mann, make the following determination under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999. Citation 1. This determination may be cited as the A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination RCTI 2005/1. Commencement 2.  (a)  This determination commences on 1 July 2005. (b)   This determination does not revoke or vary any previous determination made by the Commissioner or a delegate of the Commissioner. Application of determination 3. This determination applies to an entity not determined previously as being able to issue a tax invoice belonging to a class of tax invoices that may be issued by a recipient. Classes of Tax Invoices that may be issued by the recipient of a taxable supply 4.  A seller of reconditioned motor vehicle parts who is a recipient of a taxable supply by way of the return of a worn part, may issue a tax invoice that belongs to a class of tax invoices for a taxable supply of a worn part where the following circumstances exist:   (a)     the recipient of the worn part is registered for GST; (b)     the recipient sells a reconditioned part to a customer; (c)     the recipient of the worn part issues an invoice for the sale of the reconditioned part to a customer that separately itemises a deposit (generally referred to as a ‘core deposit’) for the supply of the worn part; (d)     the customer later supplies a worn part to the recipient who pays the ‘core deposit’ to the customer;  (e)     if the customer does not supply the worn part, the ‘core deposit’ is retained by the supplier of the reconditioned part; (f)       the recipient establishes the value of worn parts; and (g)     the recipient satisfies the requirements set out in Clause 5. Requirements that must be satisfied by a recipient of a taxable supply 5.  A recipient must satisfy the following requirements: (a)    the recipient must be registered for GST when the invoice is issued;   (b)    the recipient must set out in the tax invoice the Australian Business Number of the supplier;   (c)     the recipient must issue the original or a copy of the tax invoice to the
supplier within 28 days of making, or determining, the value of a
taxable supply and must retain the original or the copy;   (d)    the recipient must issue the original or a copy of an adjustment note to
the supplier within 28 days of the adjustment and must retain the
original or the copy;   (e)    the recipient must reasonably comply with its obligations under the
taxation laws;   (f)       the recipient must issue the tax invoice pursuant to a written agreement that the recipient has with the supplier which specifies the supplies to which it relates and contains the following terms: (i)                the recipient may issue tax invoices in respect of the specified supplies; (ii)              the supplier will not issue tax invoices in respect of those
supplies; (iii)            the supplier acknowledges that it is registered when it enters the agreement and that it will notify the recipient if it ceases to be registered; (iv)            the recipient acknowledges that it is registered when it enters the agreement and that it will notify the supplier if it ceases to be registered;     (v)              the recipient indemnifies the supplier for any liability for GST and penalty that may arise from an understatement of the GST payable or any of the specified supplies received on a tax invoice the recipient issues.   (g)    the recipient must not issue a document that would otherwise be a recipient created tax invoice, on or after the date when the recipient or the supplier has failed to comply with any of the requirements of this determination.   Definitions 6.  The following expressions are defined for the purposes of this determination: recipient means an entity that sells reconditioned motor vehicle parts and pays a “core deposit” as consideration for the supply of a worn part; worn part means a used or second-hand motor vehicle part that is returned for reconditioning . 7.  Other expressions in this determination have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999. Dated this 21st day of June 2005   Signed by Neil Edward Mann Deputy Commissioner and Delegate of the Commissioner