(1) The purpose of this Procedure is to establish a framework in which staff can confidently apply the Goods and Services Tax (GST) legislative requirements to University operations to ensure the University complies with its obligations arising from A New Tax System (Goods and Services Tax) Act 1999. (2) In order for the University to claim a refund from the Australian Taxation Office for the 10% GST paid on purchases over $82.50 (including GST), it must be in possession of a valid tax invoice. (3) Refer to the GST (Goods and Services Tax) Policy. (4) Refer to the GST (Goods and Services Tax) Policy. (5) In order for the University to claim a refund from the Australian Taxation Office for the 10% GST paid on purchases over $82.50 (including GST), it must be in possession of a valid tax invoice. (6) A valid tax invoice or recipient created tax invoice must be received for all purchases over $82.50 (including GST) from Australian vendors where GST is charged. Every endeavour must be made to obtain a valid tax invoice or receipt from a supplier. (7) For acquisitions less than $1,000 (GST exclusive) a tax invoice must include: (8) Tax invoices for acquisitions of $1,000 (GST exclusive) or more must include all of the above elements in addition to: (9) Invoices in electronic form can be tax invoices if they provide all the information required. (10) In the event that the University does not receive a tax invoice for amounts greater than $82.50 (including GST) an input tax credit must not be claimed, which increases University costs by 10%. (11) In the event that the University does not receive a tax invoice a tax code of A4 must be used and the full amount including GST will be charged to the Cost Centre. (12) If a valid tax invoice is not given by the supplier, and the payment is yet to be made, the supplier should be contacted and requested to provide a valid tax invoice. (13) If a supplier does not provide a valid tax invoice within 28 days after being asked to, and payment of the invoice has already been made, permission to claim the GST credit may be granted by the ATO. The ATO is contacted via email (at GSTmail@ato.gov.au) and provided with the following information. (14) If permission is granted by the ATO, a journal will be done to claim the input tax credit which was originally denied. (15) Under the PAYG withholding system, if a supplier does not quote an ABN on invoices to the University, the University is required to withhold tax at the top marginal rate plus Medicare Levy, (i.e. 49.0% from their payment). The 49.0% ABN withholding requirement is waived if the University is satisfied that the supplier does not require an ABN. In these circumstances the supplier will need to provide a completed “Statement by Supplier” form that states they are not required to quote an ABN. (16) An entity’s ABN, its GST registration status, the type of entity and the legal name can be verified through the Australian Business Registry website: http://www.business.gov.au (17) If a tax invoice is lost and a copy cannot be obtained from the supplier: (18) The statutory declaration and statement are not substitutes for official tax invoices. They are evidence that the expenditure was incurred on behalf of the University only and their presence does not allow the University to claim a credit for the GST. (19) A tax code of A4 must be used and the full amount including GST will be charged to the Cost Centre. (20) Adjustment credit notes must be raised when: (21) Adjustment credit notes must contain the same information that is required in a tax invoice except the words ‘tax invoice’ are replaced with ‘adjustment note’. In addition the following is required: (22) When the recipient of goods and services creates the tax invoice on behalf of the supplier, this type of tax invoice is known as a recipient created tax invoice (RCTI). (23) The recipient and supplier must satisfy the following requirements when issuing a recipient created tax invoice: (24) All recipient created tax invoices must show: (25) When an external party wishes to enter into an agreement with La Trobe University for recipient created tax invoices (RCTI) approval must be sought from Corporate Finance. (26) La Trobe University (the recipient) and the supplier must have a written agreement set up for these arrangements. The agreement must specify the supplies to which it relates and be current and effective when any recipient created tax invoices are issued. (27) All RCTI agreements must be signed by Corporate Finance. (28) A central register of RCTI agreements which lists the parties and details of the RCTI agreements will be maintained. Responsibility: Corporate Finance. (29) The RCTI is created at Corporate Finance and a copy of the RCTI is attached to the claim form. The payment for the invoice should be actioned immediately (the next available payment run). The original RCTI (and cheque if applicable) must be sent to the supplier within 28 days of raising it. A copy of the RCTI will be forwarded to the department receiving the supply. (30) If there are any variations to the RCTI, the University must also issue any adjustment notes that are required. (31) For the purpose of this Procedure:GST Procedure - Tax Invoices and Accounts Payables
Section 1 - Background and Purpose
Section 2 - Scope
Section 3 - Policy Statement
Section 4 - Procedures
Tax Invoices
Claiming Input Tax Credits
When a Supplier Does Not Give a Valid Tax Invoice
Lost Tax Invoices
Adjustment Credit Notes
Recipient Created Tax Invoices
What is a Recipient Created Tax Invoice?
Section 5 - Definitions
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This is not a current document. It has been repealed and is no longer in force.