Recipient Created Tax Invoice (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.
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.
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”
- 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.