Do you need to issue a Recipient-Created Tax Invoice?

Find out if you can issue one and how to prepare it! Anand Shukla

As per the norm, tax invoices are created by suppliers themselves, they generally have a set pay by date and payment information along with the suppliers ABN number, invoice number, address and other details which allow you to claim a credit for the GST in the purchase price.

However, in certain situations, the purchaser or the recipient of the goods or services may issue a tax invoice for the purchase of the goods and services. This is known as a Recipient-Created Tax Invoice (RCTI). By issuing a RCTI, this allows the recipient to create a RCTI instead of receiving an invoice for the goods and service provided.

In order to issue a RCTI, both you and the supplier must be both registered for GST, there must also be a current and effective agreement in writing between you and the supplier that you will issue a RCTI and that they will not issue a tax invoice.

A RCTI issued by the recipient must contain sufficient information to clearly outline the standard requirements for it to be valid. The RCTI must show the purchaser’s identity or ABN and must show if there is any GST payable, that this is payable by the supplier.

The recipient must send the original or a copy to the supplier within the time limit of 28 days from date of sale or the date on which the sale value is determined whilst also keeping the original or a copy of the RCTI for their own records.

For more information about RCTI or for a Recipient Created Tax Invoice template, this can be found by visiting the below link.

(This article is accompanied by a disclaimer, to avail a full copy of this, please contact A One Accountants by calling 03-86091889 and emailing us at

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