When should a receipt be issued? According to ACCC a receipt for goods or services must be provided for anything over $75 or under $75 if requested). Now it can include a GST tax invoice but the receipt must include:
“the business’s name
the business’s ABN or ACN
the product or service
the date the product or service was supplied
the price of the product or service.”
Now a renewal notice only says when it is due or will be renewed, which may not necessarily be the date it’s paid.
I’m asking because our RACQ Roadside assistance is paid automatically but no receipt is issued. When I enquired the response was:
The renewal notice becomes “receipt and Tax invoice once paid.”
But you dont receive anything once it is paid as proof. The only proof is the bank transaction, which as it turns out, aren’t always that simple to print out for a claim.
So can someone explain how a renewal notice can be a receipt without proof its been paid?
If the renewal notice has the words ‘tax invoice’ on it (such as ‘this document will become a tax invoice for GST purposes when paid’ which has occurred in RACQ membership renewals in the past), it is a tax invoice for tax purposes when paid. It must be paid for it to be able to be tax invoice or a tax invoice used for GST/tax purposes. The payment transaction is evidence it has been paid.
Our own business we use this approach when sending out tax invoices for payment. It is a standard approach and accepted by the ATO.
Other businesses and government agencies use the same approach whether it is power bills, council rates, car registration renewals etc.
the sale type (for example, a sale that includes both taxable and non-taxable items)
who issues the tax invoice
A tax invoice isn’t a proof of purchase document per say. However, some businesses chose to use it as a proof of purchase when the tax invoice is issued at the point of purchase when payment has been made. A good example is a retailer that provides a tax invoice from a cash register. Business are allowed to use the Tax Invoice for such purposes as outlined by the ACCC. In the case of the RACQ membership, if you need to use it as a tax invoice or a proof of purchase, you will also need to provide evidence that payment has been made. This could be a payment receipt number or a bank statement.
