Businesses that don't hold a valid tax invoice, but can substantiate the transaction from other records, may still be able to claim a GST credit.
Tax Commissioner Michael Carmody says that in response to concerns expressed by "the community" the ATO has issued a practice statement that clarifies its approach to tax invoices for GST purposes.
"While the GST law says GST credits can only be claimed if a business has a valid tax invoice, the law also allows the Tax Office to exercise its discretion," he says.
"We recognise that sometimes there is a very good reason why people don't have a tax invoice, or they have one which doesn't contain all the information required.
"In these cases we will take a practical approach to the administration of the law.
"If a business can provide other documentation which substantiates the GST credit to be claimed, the Tax Office can exercise its discretion under the law and allow the claim.
"Where other records can substantiate the details of a transaction, the Tax Office can treat these documents as valid tax invoices – another reason to keep good records."
To read the practice statement – which includes examples of where documents will be treated as a valid tax invoice –
click here. A fact sheet summarising the policy is available
here.