Federal Register of Legislation - Australian Government

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Determinations/Financial (Other) as made
This instrument repeals and replaces the Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Legislative Instrument 2017 to allow corporate card holders to claim input tax credits without holding a tax invoice in certain circumstances.
Administered by: Treasury
Registered 10 Feb 2020
Tabling HistoryDate
Tabled HR11-Feb-2020
Tabled Senate12-Feb-2020

Explanatory Statement

 

Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Determination 2020

 

 

General Outline of Instrument

1.            This instrument is made under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999.

2.            Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

3.            This determination allows corporate card holders to claim input tax credits without holding a tax invoice in certain circumstances.

4.            The instrument is a legislative instrument for the purposes of the Legislation Act 2003.

5.            This instrument replaces Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Legislative Instrument 2017 F2017L01018 (the previous legislative instrument), registered on 14 August 2017.

 

Date of effect

6.            The instrument is taken to have commenced on 15 August 2017, the date of commencement of the previous legislative instrument. It applies to tax periods that commence on or after 14 August 2017, being the application date in the previous legislative instrument.

7.            The instrument applies retrospectively to ensure that taxpayers will not be disadvantaged by the unintentional omission of a corporate card provider from the previous legislative instrument if they have been issued a corporate card statement and require relief from holding a tax invoice. For the purposes of subsection 12(2) of the Legislation Act 2003 this instrument does not adversely affect the rights or liabilities of any person other than the Commonwealth.

 

What is this instrument about

8.            The purpose of this instrument is to include a corporate card provider that was omitted from the previous legislative instrument.

 

What is the effect of this instrument

9.            The effect of this instrument is, for tax periods commencing on or after 14 August 2017 that the GST tax invoice record keeping concessions contained in the revoked instrument continue to operate in substantially the same way.

10.         The instrument allows an additional corporate card provider to issue corporate card statements that meet the requirements of this instrument.

11.         Compliance Cost Impact: Minor – There will be no or minimal impacts for both implementation and ongoing compliance costs. The legislative instrument is minor or machinery in nature.

 

Background

12.         This determination replaces Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Legislative Instrument 2017 F2017L01018, registered on 14 August 2017.

13.         This determination includes a corporate card provider entity that was omitted from the previous legislative instrument. This determination is otherwise substantially the same as the previous legislative instrument that it replaces. An entity that satisfied the requirements of the previous legislative instrument will satisfy the requirements of this determination.

14.         The concession in this instrument and the revoked instrument are granted to reduce compliance costs for entities claiming input tax credits for creditable acquisitions, by permitting the entity (the holder of certain corporate cards) to claim an input tax credit without holding a tax invoice. Instead, the cardholder was required to hold a corporate card statement (issued by the corporate card provider) that met certain information requirements specified in the instruments.

 

Explanation

15.         Provided the requirements of this instrument are met, for the purposes of attributing an input tax credit for a creditable acquisition to a tax period, a cardholder is not required (under subsection 29-10(3) of the GST Act) to hold a tax invoice for the creditable acquisition (section 7). In summary, the corporate card statement may be used to claim input tax credits where:

(a)          the cardholder holds a corporate card statement for the creditable acquisition that contains the information set out in section 9

(b)          the GST related information on the corporate card statement meets the accuracy requirements set out in section 12

(c)          the cardholder meets the requirements of section 13 that ensure the cardholders use the statement accurately to claim input tax credits

(d)          section 11 does not apply. This section requires the cardholder to hold a tax invoice in relation to the acquisition where the statement shows an estimated GST amount, or there is an error in relation to the acquisition, and

(e)          the card statement issued by the corporate card provider meets the information requirements specified in this instrument by using either of two methods:

(i)            the accurate method provided by paragraph 8(2)(b), or

(ii)           the signed statement method provided by paragraph 8(2)(c).

16.         For low value transactions (currently those that do not exceed $75 in value) there is no requirement under subsection 29-10(3) of the GST Act to hold a tax invoice. Therefore, this instrument is not applicable to low value transactions.

 

Consultation

17.         Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the Commissioner is satisfied that appropriate and reasonably practicable consultation has been undertaken.

18.         For this instrument, broad consultation was undertaken for a period of 2 weeks commencing on 21 August 2019.

19.         The draft instrument and draft explanatory statement were published on the ATO Legal database. Publication was advertised via the ‘What’s new’ page on that system and via the ‘Open Consultation’ page on ato.gov.au.  Major tax and superannuation publishers and associations monitor these pages and include the details in the daily and weekly Alerts and newsletters to their subscribers and members. This ensures advice of the draft is disseminated widely across the tax professional community, and that they are in an informed position to provide comments and feedback.

20.         Targeted consultation was also undertaken for a period of 2 weeks.  Copies of the draft legislative instrument and explanatory statement were sent to the corporate card providers listed in the legislative instrument for comment and feedback.

21.         Feedback was received and minor typographical changes were able to be made to the legislative instrument. Parties who provided feedback were contacted to thank them for their feedback and to explain how their feedback was able to be used in this process.

 

 

 

 

 

Legislative References

A New Tax System (Goods and Services Tax) Act 1999

Acts Interpretation Act 1901

Legislation Act 2003

Human Rights (Parliamentary Scrutiny) Act 2011


 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Determination 2020

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Instrument

This Legislative Instrument allows corporate card holders to claim input tax credits without holding a tax invoice in certain circumstances.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms as it is considered to be minor or machinery in nature and does not substantially change the law.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.