When the buyer creates the tax invoice.
A recipient-created tax invoice is issued by the buyer — called the recipient — instead of the supplier. It is only valid in the circumstances allowed by the ATO's Recipient Created Tax Invoice Determination 2023. Both parties must be registered for GST, the arrangement must be documented, and the supplier must not issue a second tax invoice for the same supply.
Australian GST guide · Reviewed against the 2023 determination · Updated August 2026
Do not just reverse a normal invoice — A buyer cannot choose to issue an RCTI for any purchase. First confirm the recipient and supply qualify under the 2023 determination, then put the required written agreement and checks in place.
A standard tax invoice comes from the supplier. An RCTI comes from the purchaser because the purchaser is the party determining or documenting the value of the taxable supply.
The recipient and supplier must both be registered for GST when the RCTI is issued. An ABN by itself is not enough; GST registration must be current.
The Recipient Created Tax Invoice Determination 2023 covers government-related and large business entities, plus business recipients that determine the value of the taxable supply and meet the determination's requirements.
The agreement may be separate or embedded in the RCTI. It must identify the supplies, permit the recipient to issue RCTIs, stop the supplier issuing tax invoices for them, and require both parties to report any GST-registration change.
It must be recognisable as a recipient-created tax invoice, show the supplier's ABN and the recipient's identity or ABN, contain the usual tax-invoice information, and make clear the supplier is liable for the GST.
Issue the original or a copy to the supplier within 28 days of the supply or the value being determined, and retain a copy for five years. Adjustments require a recipient-created adjustment note.
Check the Recipient Created Tax Invoice Determination 2023. A government-related or large business recipient may qualify; another business recipient generally needs to determine the value of the taxable supply and satisfy the determination.
Check the recipient and supplier are registered for GST when the RCTI will be issued. Repeat the check periodically for an ongoing arrangement.
Use a separate current agreement, or embed the required agreement in the RCTI. The supplier has 21 days to reject an embedded proposed agreement.
Include both parties, both ABNs, the taxable supply, price and GST, label the document clearly as an RCTI, and state that the supplier is liable for the GST. Send it within 28 days.
Keep the RCTI or a copy for five years. If the price or GST changes, issue a recipient-created adjustment note and stop issuing RCTIs if either party no longer meets the conditions.
A GST-registered produce buyer determines the final value of a GST-registered grower's eligible taxable supply after grading and weighing it. This is an illustration, not proof that a particular arrangement qualifies.
Takeaway: Qualification comes first. The document does not make an otherwise ineligible buyer or supply eligible for RCTI treatment.
Create a seller-issued invoice with AUD, ABN and GST fields. For an RCTI, use a workflow configured for the ATO's buyer-issued requirements.
Create an Australian invoiceA recipient-created tax invoice, or RCTI, is a tax invoice issued by the buyer or recipient of a taxable supply instead of the supplier. It is permitted only where the recipient and supply qualify under the ATO's current determination and the required GST-registration, agreement and document conditions are met.
No. The ATO's Recipient Created Tax Invoice Determination 2023 defines who may issue one. Government-related and large business entities are covered if they satisfy the requirements; another business recipient generally must determine the value of the taxable supply and satisfy the determination. If you are unsure, obtain tax advice before issuing one.
Yes. Both the buyer issuing the RCTI and the supplier must be registered for GST when it is issued. A valid ABN without current GST registration is not sufficient.
Yes. The agreement can be a separate document or embedded in the RCTI. It must identify the relevant supplies, allow the recipient to issue RCTIs, state that the supplier will not issue tax invoices for those supplies, and require both parties to notify the other if their GST registration ends.
The recipient must give the supplier the original or a copy within 28 days of the taxable supply being made or, where the recipient determines the value later, within 28 days of determining that value.
The recipient must retain the original or a copy for five years. The supplier should also retain the document as part of its GST and business records.
InvoiceSonic's standard generator creates seller-issued invoices and tax invoices; it is not currently a dedicated RCTI workflow. Use the ATO's RCTI form or software configured for the required buyer-issued agreement and fields. InvoiceSonic can still create your ordinary Australian invoices when you are the supplier.
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