Corporate card statements – GST fact sheet 4
Draft Ruling GSTR 2000/D6 allows a registered entity holding corporate card statements to claim input tax credits without holding a tax invoice. This would mean that RM IT University would be able to claim input tax credits in relation to creditable acquisitions made by employees if certain criteria were satisfied.
2.0 Circumstances in which a tax invoice is not required
The Commissioner proposes in GSTR 2000/D6 to make a determination that will allow RMIT University to be entitled to an input tax credit for creditable acquisitions without holding a tax invoice when lodging the Business Activity Statement (BAS) each month. This circumstance will be allowed if RMIT University holds the corporate card statement from the corporate card provider and the following requirements are also satisfied
(a) the corporate card statement must contain the following details:
(i) RMIT University;
(ii) Name of employee who made the creditable acquisition;
(iii) RMIT University’s ABN or address;
(iv) The date each supply was purchased on the statement;
(v) Supplier’s name
(vi) Supplier’s ABN
(vii) Where applicable, supplier’s branch number;
(viii) A brief description of the each supplier’s industry; (ix) Amount of GST paid for each supply; and
(ix) The total price paid for each supply.
(b) RMIT University must also have an effectively regulated policy, which states that the
corporate card must not be used for private or domestic purposes.
3.0 Additional requirements for the corporate card provider
The draft ruling only applies to certain corporate card providers as listed below ie. For the purposes of the ruling, corporate card providers who issue statements, which can be substituted as a tax invoice, are:
- VISA International;
- American Express International;
- Diners Club International;
- MasterCard International
RMIT University currently uses MasterCard International for a majority of its corporate cards, with a small minority, holding American Express International cards. Therefore, this allows RMIT University to be entitled to claim an input tax credit for any creditable acquisitions without holding a tax invoice when lodging the monthly BAS, if the corporate card statement is retained.
4.0 Applications for determinations in respect of other corporate card providers
RMIT University does not use another corporate card provider other than the four listed above. However, if RMIT changes corporate card providers to one other than the four listed above, it can request to the Commissioner to make a determination in respect of those card statements that are issued by that corporate card provider.
5.0 Tax point of the supply
The corporate card statement must show the date the goods or services were purchased from the supplier. In some circumstances, this date may differ if the supplier to the corporate card provider transmits the information at a later date.
6.0 Double claiming of input tax credits
If RMIT University chooses to substantiate acquisitions and claim input tax credits via corporate card statements, any tax invoices received in relation to the same acquisition cannot further be used to “double claim’ input tax credits.
7.0 Situations where you need to obtain a tax invoice
Where RMIT University receives a corporate card statement that indicates the supply may be a mixed supply, or a taxable supply where GST is not exactly 1/11th of the price, a tax invoice will still be required to substantiate the input tax credits for the supply[Next: Supporting documents and information ]