Federal Register of Legislation - Australian Government

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Determinations/Taxation as made
This Determination relates to the waiver of the requirement to hold tax invoices by Business Travel Account Holders of American Express International Inc.
Administered by: Treasury
Registered 29 Nov 2006
Gazetted 22 Aug 2001
Date of repeal 01 Apr 2017
Repealed by Sunsetting

COMMONWEALTH OF AUSTRALIA

 

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999

 

DETERMINATION

 

Under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 I make the following determination:

 

Citation

1.                  This determination is the A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No.4) 2001 – Business Travel Account Holder of AMERICAN EXPRESS INTERNATIONAL INC.

 

Commencement

2.         This determination commences on the date the A New Tax System ( Goods and Services Tax ) Act 1999 commenced.

 

Circumstance where the requirement for a tax invoice does not apply

3.         The circumstance set out in the following paragraphs is the circumstance of a kind in which the requirement for a tax invoice under subsection 29-10(3) of the Act does not apply.

4.         A BUSINESS TRAVEL ACCOUNT HOLDER of AMERICAN EXPRESS INTERNATIONAL INC. will not be required to hold a tax invoice for a creditable acquisition purchased through the Business Travel Account in order to attribute an input tax credit on the acquisition to a tax period provided that at the time the BUSINESS TRAVEL ACCOUNT HOLDER gives its GST return/Business Activity Statement (“BAS”) for the tax period to the Commissioner:

(a)    The BUSINESS TRAVEL ACCOUNT HOLDER holds a Business Travel Account Statement produced by AMERICAN EXPRESS INTERNATIONAL INC. that includes the following details:

(i)      The BUSINESS TRAVEL ACCOUNT HOLDER’s name;

(ii)    The name(s) of the person(s) who uses the Business Travel Account to purchase creditable acquisitions(s);

(iii)   The BUSINESS TRAVEL ACCOUNT HOLDER’s Australian Business Number (‘ABN’) or address; and

(iv)  For each acquisition for which the BUSINESS TRAVEL ACCOUNT HOLDER may claim an input tax credit, the Business Travel Account Statement has:

·        the date the BUSINESS TRAVEL ACCOUNT HOLDER purchased the acquisition;


·        the supplier’s name;

·        the supplier’s ABN;

·        the supplier’s Branch Registration Number (where applicable);

·        a brief description of the acquisition or, if that is not available, a description of the supplier’s industry;

·        the amount of GST paid; and

·        the total amount paid;

(b)   The BUSINESS TRAVEL ACCOUNT HOLDER has an effectively regulated corporate policy for making adjustments for expenditure on the Business Travel Account that is of a private or domestic nature and was not made in connection with carrying on the BUSINESS TRAVEL ACCOUNT HOLDER’S enterprise;

(c)    The BUSINESS TRAVEL ACCOUNT HOLDER has supplementary documentation supporting each acquisition on the Business Travel Account Statement that has a private or domestic component, and the documentary evidence clearly identifies the creditable and non-creditable components of the acquisition; and

(d)   AMERICAN EXPRESS INTERNATIONAL INC. meets the conditions set out in paragraphs 5 and 6 below.

5.         AMERICAN EXPRESS INTERNATIONAL INC. must provide the date each supply on the statement was purchased.

6.         Where all the information required on the statement is not provided by the merchant to AMERICAN EXPRESS INTERNATIONAL INC., the latter may, until 30 June 2004, separately obtain the supplier’s ABN and GST registration status and then calculate the amount of GST on the supply, provided AMERICAN EXPRESS INTERNATIONAL INC.:

(a)    has obtained a signed statement from each merchant that states:

(i)      the merchant’s ABN and Branch Registration Number (where applicable);

(ii)    whether or not the merchant is registered for GST;

(iii)   the type of supply or supplies (i.e., taxable, GST-free and/or input taxed) the merchant provides;

(iv)  where the merchant only provides taxable supplies, whether or not GST is calculated at 1/11 of the price for all the taxable supplies the merchant provides; and

(v)    provides AMERICAN EXPRESS INTERNATIONAL INC. with an undertaking that it will be notified -

·        when the merchant ceases to be registered for GST; or

·        when  the merchant ceases to make only taxable supplies where the GST is calculated at 1/11 of the price;


(b)   retains the signed statement for at least 5 years after the merchant ceases its association with AMERICAN EXPRESS INTERNATIONAL INC.;

(c)    clearly identifies each adjustment in the statement that may be a GST-free, input taxed or mixed supply;

(d)   clearly identifies each adjustment where GST may not be 1/11 of the price;

(e)    where an adjustment has been identified as being a supply that may be GST-free, input taxed, or a supply where GST may not be 1/11 of the price, advises the BUSINESS TRAVEL ACCOUNT HOLDER to obtain an adjustment note before attributing an input tax credit to a tax period; and

(f)     where AMERICAN EXPRESS INTERNATIONAL INC. has obtained information that the merchant is not registered, or ceases to be registered for GST, AMERICAN EXPRESS INTERNATIONAL INC. must not calculate an amount of GST for adjustments from that merchant.  Instead, AMERICAN EXPRESS INTERNATIONAL INC. must state that the amount of GST included in the adjustment is $nil.

Situations where an adjustment note is still required

7.         The BUSINESS TRAVEL ACCOUNT HOLDER will still need to obtain an adjustment note before attributing an adjustment to a tax period for an adjustment on the Business Travel Account Invoice Statement where:

(a)    the Business Travel Account Statement indicates that the adjustment relates to a supply that may be a mixed supply or a taxable supply where GST is not 1/11 of the price; or

(b)   where there is an error on the Business Travel Account Statement in relation to the adjustment.

 

Definitions

8.         The following expressions are defined for the purposes of this determination:

the Act means the A New Tax System (Goods and Services Tax) Act 1999.

The person(s) who uses the Business Travel Account  includes a partner, sole trader, director, contractor or employee of an entity. 

Business Travel Account Statement is a statement of liability that is issued by AMERICAN EXPRESS INTERNATIONAL INC. to one of its clients. 

Business Travel Account is an account that is held by and in the name of an entity and is used to purchase goods and services for commercial purposes.

Business Travel Account Holder is the registered entity that holds a Business Travel Account with AMERICAN EXPRESS INTERNATIONAL INC.

Mixed supply is a supply of one or more taxable supplies and any one of the following supplies:

·        a supply that is GST-free or input taxed;


·        a supply that was made before 1 July 2000.

Other expressions in this Determination have the same meaning as in the Act.

 

Dated this 22nd Day of August 2001

 

 

 

Signed by Geoffrey Mills

Assistant Commissioner

GST Law and Interpretation

Delegate of the Commissioner