Additional Requirements For Issuing Invoices

For a recipient created tax invoice to be effective, the following additional conditions must be satisfied:

• the supplier and recipient must be registered when the invoice is issued, and when the supply covered by the invoice is made. A recipient can check the registration status of its supplier by contacting the Tax Office;
   
• the recipient must issue a copy of the tax invoice to the supplier and must retain the original;
   
• the recipient must issue an adjustment note to the supplier if there are any subsequent adjustment events, e.g. a change in price; the recipient must reasonably comply with its general tax obligations;
   
• the recipient and supplier must have a current written agreement that: (1) tax invoices should be issued by the recipient, not the supplier; (2) the parties will notify each other if they cease to be registered; (3) the recipient will notify the supplier if it ceases to satisfy the relevant requirements; and (4) the recipient indemnifies the supplier for GST or penalties arising from any understatement in the invoice; and
   
• the recipient must not issue any invoices after it has ceased to be eligible or has ceased to comply with any of these requirements (Draft GST Ruling GSTR 1999/135).
   
• An invoice issued by the recipient can also cover any supplies which the recipient makes back to the supplier. However, the Commissioner considers that the two supplies must be accounted for separately in the GST return of each party (Draft GST Rulings GSTR 1999/135, 1999/1310).
   
• EXAMPLE: A cane grower supplies cane to a sugar mill, which in turn supplies testing services to the grower. Although the supplies are related they must still be treated as separate supplies, which must be accounted for separately in the parties' GST returns. The recipient created tax invoice issued by the mill can, however, act as a tax invoice covering both supplies provided it treats them as separate.