The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Motor Vehicle Incentive Payment Made to Motor Vehicle Dealer) Legislative Instrument 2014 was registered on Wed 21.5.2014.
It waives the requirement for a recipient making a creditable acquisition to hold a tax invoice for an input tax credit to be attributable to a tax period, where:
- the recipient makes a creditable acquisition of a motor vehicle from a motor vehicle dealer (the supplier); and
- the supplier receives or is entitled to receive a motor vehicle incentive payment for the supply of the motor vehicle to the recipient in addition to the consideration it receives from the recipient; and
- the recipient holds a document that meets the requirements prescribed in the Instrument.
The Instrument is a response to industry concerns and addresses the practical implications of the Full Federal Court’s decision in AP Group Limited v FCT [2013] FCAFC 105 where the documents motor vehicle dealers provide do not satisfy all of the requirements under s 29-70(1) to be a tax invoice.
The Instrument is taken to have commenced on 1 May 2014 and applies to tax periods for which the GST return is required to be given to the Commissioner on or after 1 May 2014.
[LTN 96, 21/5/14]