What Is Recipient Created Tax Invoice?

A recipient-created tax invoice (RCTI) is a tax invoice issued by the buyer instead of the seller. They're common in industries where the buyer is in a better position to calculate the value of the supply — for example, agriculture, mining, dairy, livestock, and some recurring service contracts.

Conditions for issuing an RCTI:

Both parties must be registered for GST
Both parties must have a written agreement that the buyer will issue the tax invoice
The supply must fall within an ATO-determined class (or have specific ATO approval)
The agreement must cover the kinds of supplies the RCTI applies to

A valid RCTI must:

Be clearly labelled "Recipient-Created Tax Invoice"
Show both the buyer's and seller's identities and ABNs
Show 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

The buyer must provide a copy to the seller within 28 days. RCTIs are typically handled by specialised accounting systems — InvoiceSonic supports standard tax invoices for the majority of small businesses.

What Is Recipient Created Tax Invoice?

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