What is a Recipient Created Tax Invoice (RCTI)?
An RCTI is a tax invoice that is issued by the purchaser of the goods and/or services rather than the seller. RCTIs can only be issued by a purchaser if:
- The purchaser and the seller are both registered for GST.
- The sales for which the purchaser can issue an RCTI are agreed to in writing by the purchaser and the seller either in a separate written agreement specifying the sales to which each agreement relates or embedding this information or specific terms, as outlined in the legislative instrument, in the tax invoices they issue.
- The agreement is current and effective when the RCTI is issued.
- The goods or services being sold under the agreement are of the type that the Australian Taxation Office have determined can be invoiced using RCTIs.
To Create A New RCTI
- Start at the Home Page.
- Click Cashbook.
- Click Enhanced Invoicing Acc/Rec.
- Enhanced Invoicing Browse Invoices screen will appear.
- Click on New Invoice from the menu on the left hand side of the screen or click on Add New.
- The Invoicing Wizard will be displayed.
- Click on the green arrow.
- The Invoice Lines Screen will now appear.
- Complete the invoice - adding what you need to add. Once you are happy that each line is correct, click the green tick.
- Once the whole invoice is finished click the green arrow.
- The Total Notes screen will now appear. If you want to send your client a specific note, type it in the notes box.
- If you wish to see how your invoice will look prior to printing it you can click Preview.
- Otherwise click Finish.
- You will now be returned to the Browse Invoices Screen.
- Use the receive payment to send the RCTI to EFT's Cheques.
- Send the Payment.
Print and Email Your Invoices
You will need to print your invoices to PDF in order to send them via email.
- Open your RCTI invoice and click on Print as per the below screenshot:
- From there open the save location through your File Explorer and right click on the invoice and click Send to Mail Recipient.
Please note: You will be prompted to save an invoice twice because two copies are created, one for you and one for the recipient of the RCTI. The second copy is the one you need to send to your customer.