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  • #982347
    Julie Janzon
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    This is going to sound silly coming from a bookkeeper but a client said to me today that a non registered GST entity is supposed to issue invoices without the word TAX in the “Tax Invoice” .

    Is this correct? It’s the first I’ve heard of it. I thought all invoices were tax invoices and non registered entities just advised of their exclusion of GST.

    Advice please. I would like to prove this woman wrong. She’s been annoying me with her way of doing things.

    #1136273
    Past-Member
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    According to the ATO the invoice has to state at the bottom ‘No GST has been charged’. I don’t think it matters for non-registered whether it says ‘tax invoice’ or ‘invoice’ because some people issue invoices that say Tax Invoice but half the items do not have GST.

    My understanding would be that Tax Invoice is still acceptable as long as it has the ‘No GST has been charged’ line.

    Anyway, just my understanding. I am not an accountant and I am registered for GST.

    See the How to Set Out Tax Invoices and Invoices pdf link on this page http://www.ato.gov.au/content/48360.htm

    #1136274
    JacquiPryor
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    I always that Tax Invoices were for GST registered entities – and, if not registered you simply issue invoices.

    http://www.ato.gov.au/content/48360.htm

    The above page links to a guide about how to lay out tax invoices and invoices. The ‘invoice’ example shown in the guide is for a non-registered entity, and has the note that “no GST has been charged” at the bottom. In this example, they show simply “Invoice No XXXX” rather than Tax Invoice at the top of the invoice.

    There are also guides at the ATO site that discuss Tax Invoices, and what information they need to include etc and everything I have read only discusses this in connection with GST registered entities and the inclusive of GST in invoices.

    #1136275
    Divert To Mobile
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    JulieJanzon, post: 155298 wrote:
    a non registered GST entity is supposed to issue invoices without the word TAX in the “Tax Invoice” .

    Is this correct?

    I originally thought no. But reading Jo’s post below I stand corrected.

    this document from the ATO fails to address it directly.

    Steve

    #1136276
    Jo-Anne Foster
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    JulieJanzon, post: 155298 wrote:
    This is going to sound silly coming from a bookkeeper but a client said to me today that a non registered GST entity is supposed to issue invoices without the word TAX in the “Tax Invoice” .

    Is this correct? It’s the first I’ve heard of it. I thought all invoices were tax invoices and non registered entities just advised of their exclusion of GST.

    Advice please. I would like to prove this woman wrong. She’s been annoying me with her way of doing things.

    http://www.ato.gov.au/businesses/content.aspx?doc=/content/76494.htm&page=25&H25.
    Sorry to say it but she is right.

    #1136277
    Julie Janzon
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    Dammit!

    Thank you one and all. Sometimes there is only so much information you can cram into your brain. I must have overlooked that one significant fact when reading all the ATO information over the years.

    I hate being wrong but will admit to it when the need arises. Dammit!

    I will now change my invoices so I’m not wrong again in the future but I just hate that this very annoying woman was the one who has found the error. Dammit!

    Have a great day and I just knew you fellow soloist would help solve my dilemma.

    Cheers

    Julie

    #1136278
    ONE STOP TAX
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    It is not wrong for Non-GST registered entities to issue a “Tax Invoice”, provided what they as selling or providing are taxable supplies. Although, it is recommended to simply use “invoice” instead of “tax invoice”.

    http://www.onestoptax.com.au
    ONE STOP TAX

    #1136279
    Jo-Anne Foster
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    ONE STOP TAX, post: 157449 wrote:
    It is not wrong for Non-GST registered entities to issue a “Tax Invoice”, provided what they as selling or providing are taxable supplies. Although, it is recommended to simply use “invoice” instead of “tax invoice”.

    http://www.onestoptax.com.au
    ONE STOP TAX

    Ahhhh yes it is.

    Please refer to the following website for the definition of a taxable supply.

    http://www.ato.gov.au/businesses/content.aspx?doc=/content/57709.htm&page=40&H40

    If your business is not registered for GST, you cannot issue tax invoices or claim GST credits.

    http://www.ato.gov.au/businesses/content.aspx?doc=/content/25193.htm&page=68&H68

    Reference from my original post.

    http://www.ato.gov.au/businesses/content.aspx?doc=/content/76494.htm&page=25&H25

    Jo-Anne Foster
    Helensvale Tax and Accounting

    #1136280
    ONE STOP TAX
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    I think I should have made myself more clear.

    What I meant was that for a non-GST registered entity it is not illegal if “Tax invoice” phrase appear on top their invoice, provided they cross out TAX & GST (or put zero) when they hand it to customer.

    It is obvious that if your are not registered for GST, you can not charge GST and purchaser can not claim input tax as well.

    http://www.onestoptax.com.au
    ONE STOP TAX

    #1136281
    YoungGourmet
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    That pesky ATO has changed the links (again) so as of today the invoice examples can be downloaded here:

    http://www.ato.gov.au/Business/Record-keeping/In-detail/A-basic-paper-record-keeping-system/How-to-set-out-tax-invoices-and-invoices/

    #1136282
    James Millar
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    To clarify the legal position here.

    We had this matter arise with a client recently and we reviewed the legislation to determine the true legal position (the ATO website is not legislation and it does not define what is and isn’t acceptable under our various tax laws. It can however be relied upon in many cases if something doesn’t go your way)

    Anyway we could not find a piece of tax legislation that specifically stated the using the words “tax invoice” on an invoice issued by a non GST registered entity was prohibited. (Generally these items are contained within the tax administration Acts and they are very specific but we could not locate anything on this).

    We concluded that the ATO are relying on the general tax provisions dealing with misleading conduct / representations. In other words they seem to be hanging their hat (on their website material) on non-specific law. We are not suggesting that in every instance using the words “tax invoice” for a non registered entity is always acceptable (it may be construed as misleading) but at this point I’m not entirely sure that (a) the decisive terminology used on the ATO website is backed by equally decisive law and (b) that use of the word “illegal” or “prohibited” is appropriate in these circumstances.

    If you have any doubt and have a spare hour then perhaps call the ATO and ask someone for the exact piece of legislation that the item derives from (which they are ultimately bound to provide).

    Something to chew on.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1136283
    Rafa
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    I know it is probably not good to revive a post that is 7 months old, but I came to this post and it gave me a good idea on how to address my question. Hence I thought I could try to close the loop here in case anyone else has the same question.

    To avoid broken links or changes in URLs, the ATO document to refer to is NAT 11675 (just type it in the search field in the ATO website).

    I’m not registered for GST and incorrectly bought a Tax Invoice book from Office Works. Called the ATO and they advised that I can select one of the follwoing options:
    a- continue to use the same book but cross out the word “Tax”, cross out the sections related to GST charges and manually include “No GST has been charged”.
    b- buy a new book, but this time an Invoice book and not a Tax Invoice one.
    c- just manually create my own invoice using a computer. Just need to make sure the invoice will have the minimum requirements according to example 4 in NAT 11675.

    I copied in pasted here the requirements for easy of access:
    These tax invoices should include sufficient
    information to ascertain:
    1 the business name of the supplier at the
    top
    2 the ABN of the supplier at the top, near
    the supplier’s business name
    3 the date of issue of the invoice at the top,
    on the right hand side
    4 the word ‘invoice’ at the top, stated
    prominently
    5 an invoice number shown prominently
    alongside the word ‘invoice’, and
    6 the statement ‘No GST has been charged’
    should be included at
    the bottom.

    Regards,
    Rafa

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