Just when you think you’ve got the hang of Recipient Created Tax Invoices – a new change looms. Here’s the latest on the Australian Commissioner’s newly proposed changes to the rules for issuing a Recipient Created Tax Invoice (RCTI) and how it could potentially affect your GST invoice treatment.
Who is eligible to issue a recipient-created tax invoice?
For a business to claim input tax credits, it must hold a valid tax invoice (or valid RCTI). Therefore, ensuring compliance is critical to meet GST requirements. In most cases, the supplier of a taxable supply (e.g. the service provider) will issue a tax invoice to the recipient (e.g. the customer).