An RCTI is an invoice issued by the recipient of the supply “on behalf’ of the supplier.
There are number of situations where a recipient will raise an invoice for goods supplied by Flinders. In order for such RCTI’s to be accepted the following conditions must apply:
the supplier [Flinders] and the recipient must be registered for GST
- the recipient must issue the RCTI within 28 days of making the supply and retain a copy
- the recipient must reasonably comply with its obligations under taxation laws e.g. the invoice must be tax compliant [see above]
- the recipient and the supplier must have a signed written agreement specifying the supplies to which it relates, which includes the following clauses:
- the recipient can issue tax invoices in respect of the supplies
- the supplier will not issue invoices
- the supplier acknowledges that it is registered for GST and will notify the recipient if ceases to be registered
- the recipient acknowledges that it is registered for GST and will notify the recipient if ceases to be registered
As a general rule Flinders University does not issue RCTIs.
For an RCTI to be accepted by Flinders University there must be an RCTI agreement in place.
The common situations where RCTIs are received by Flinders University include :
Grants – in these circumstances there is normally a clause in the contract which deals with the ISSe of RCTIs
Trade-ins – in this situation a separate RCTI agreement is normally issued.
In both the above examples there are legal requirements with regard to the contents of the RCTI clause or agreement.
It is essential that the RCTI agreement is signed by Mark Gregory as the Vice-President (Corporate Services).
It is good practise to inform the University tax department if you are in possession of an RCTI to ensure that all necessary requirements are in place.