Recipient Created Tax Invoice (RCTI)

What is an RCTI?

An RCTI is a recipient created tax invoice.  It is a special form of tax invoice which is issued by the recipient rather than the supplier. UWA are eligible to issue these types of invoices.  However, there are specific requirements.

RCTI Agreement
A recipient created tax invoice agreement must be entered into between the recipient and supplier before any RCTIs are issued.  If an RCTI is issued without a valid agreement, the RCTI is not considered compliant for GST purposes and no ITC can be claimed.

Notify FS-Tax if you have, or plan to, enter into an RCTI Agreement with a third party. It is important that the agreement meets all the requirements of the legislation and will require review by FS Tax staff.

Compliant Invoice
For an RCTI to be a compliant tax invoice, it must contain the following information:

  • The words “Recipient Created Tax Invoice”
  • The name of the supplier
  • The ABN of the supplier
  • The name of the recipient
  • The ABN of the recipient
  • The date of issue of the RCTI
  • The quantity of the goods sold or the extend of the services sold
  • A brief description of the things sold; and
  • The total price of the sale (including GST)

If the RCTI is for taxable sales only, it must also:

  • Provide a statement such as “total price includes GST”
    or
  • Show the total price and a statement to the effect that the GST shown is payable by the supplier

If the RCTI is for both a taxable sale and either a GST-free or input taxed sale, it must also:

  • Clearly identify each taxable sale
  • Show the total price; and
  • Show the total amount of GST payable separately and a statement to the effect that the GST shown is payable by the supplier

Contact FS-Tax for a sample of an RCTI if required.

Other Requirements of the Recipient
The recipient must:

  • Issue the original or a copy of the RCTI to the supplier within 28 days of when the sale is made or when the value of the sale is determined
  • Retain the original or a copy of the RCTI
  • Reasonably comply with its obligations under the taxation laws (contact FS-Tax for more information)
  • Not issue a document that would otherwise be an RCTI, on or after the date that they or the supplier has failed to comply with any of the requirements of RCTIs.
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