Recipient Created Tax Invoice (RCTI)

A recipient created tax invoice is a GST tax invoice issued by the buyer of a taxable supply instead of the supplier.

A recipient created tax invoice, often shortened to RCTI, is an Australian tax invoice used when the recipient of a taxable supply creates the invoice. In everyday language, that means the buyer prepares the GST invoice instead of waiting for the supplier to issue one.

RCTIs are useful when the buyer is the party that works out the final value of the supply, such as some agency, commission, agricultural, grant, marketplace, or settlement-style arrangements. They are not a casual workaround for missing supplier invoices. The arrangement needs to meet the Australian GST rules before the buyer relies on the document for GST - Goods and Services Tax records or an input tax credit.

Where Recipient Created Tax Invoices Appear

You may see an RCTI in:

accounts payable workflows where the buyer calculates the amount owed
commission, referral, agency, agricultural, grant, or marketplace payments
GST records that support a buyer’s input tax credit claim
supplier agreements that say the recipient will issue the tax invoice
BAS review work where the accountant checks GST evidence
accounting software records where the bill is created from the buyer’s side

An RCTI still records a supplier transaction. The difference is who creates the tax invoice and what evidence supports that process.

How Recipient Created Tax Invoices Work In Practice

The Recipient Created Tax Invoice Determination 2023 is the current Australian legislative instrument for RCTIs. The Federal Register of Legislation shows it is in force and its latest version is F2023L00785, effective 14 June 2023.

In practical terms, a business should not issue an RCTI unless the arrangement meets the rules. The key checks usually include:

the buyer and supplier are registered for GST when the RCTI is issued
the buyer is allowed to issue an RCTI for the taxable supply
there is a current written agreement with the supplier
the supplier agrees not to issue its own tax invoice for the same supply
the RCTI is issued to the supplier within the required timing
the document includes the normal tax invoice details plus the supplier’s ABN
the records are kept so the GST treatment can be checked later

The ATO also provides a recipient created tax invoice form and instructions for businesses that need a practical template. Use it as a starting point, not a substitute for checking whether the arrangement itself is allowed.

Simple Example

A produce wholesaler buys fruit from a grower. The final amount payable depends on the quantity and quality assessed after delivery, so the wholesaler calculates the value after receiving the goods.

If the RCTI rules are met, the wholesaler can issue an RCTI to the grower showing the supply, supplier ABN, GST and total payable. The grower does not issue a separate tax invoice for that supply. The wholesaler then records the purchase, GST credit and payment in accounts payable.

If the parties do not have the required agreement or one party is not registered for GST, the buyer should not treat the document as a valid RCTI without advice.

Why Recipient Created Tax Invoices Matter

RCTIs matter because GST depends on the document trail. A buyer may be able to calculate the amount owed, but the GST credit still needs evidence. If an RCTI is missing required details, issued outside the rules, or duplicated by a supplier tax invoice, BAS records can become unreliable.

For small businesses, the main risks are:

claiming a GST credit without a valid tax invoice trail
issuing an RCTI when the supplier should have issued the invoice
forgetting the written agreement requirement
failing to check GST registration before issuing the RCTI
posting the purchase twice because both parties created documents

How Gimbla Can Help

Gimbla helps keep supplier records, bills, tax coding, attachments and bank reconciliation together. For an RCTI arrangement, that means the business can keep the agreement, the RCTI, the payment and the GST coding close to the same accounts payable record.

If supplier documents are captured through automation, keep the review step visible. The bill scanner guide explains why scanned or AI-captured supplier records still need a human check before they affect GST, BAS or reports.

Helpful Gimbla Guides

In Short

An RCTI lets the buyer issue the GST tax invoice, but only under specific Australian rules. Treat it as a controlled GST document: check the agreement, registration, timing, supplier ABN, GST amount and accounting record before relying on it.