What Is a Recipient-Created Tax Invoice?

A recipient-created tax invoice (RCTI) is a tax invoice issued by the buyer (recipient) rather than the seller (supplier). They're common in industries where the buyer is better placed to know the exact value of the supply — for example, agriculture, mining, and large recurring contracts.

To issue an RCTI legally, both parties must:

Be registered for GST
Have a written agreement that the buyer will issue the tax invoice
Agree on the kinds of supplies the RCTI covers
Issue a copy to the supplier and keep one for records

A valid RCTI must:

Be clearly labelled "Recipient-Created Tax Invoice"
Include both the supplier's and recipient's identities and ABNs
State the GST amount or "Total price includes GST"
Include the issue date, description, quantity, and price
State that the GST is payable by the supplier

RCTIs are governed by ATO determinations covering specific industries. If you're outside those classes, you can't issue an RCTI without ATO approval. InvoiceSonic supports standard tax invoices for most small businesses — RCTIs are typically handled in specialised accounting systems.

What Is a Recipient-Created Tax Invoice?

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