Recipient Created Tax Invoices
This Clause applies to Recipient Created Tax Invoices, where:
GST means the goods and services tax as provided for by the GST Law or any similar tax, including any interest or penalties which may be applicable thereon
GST Act means the A New Tax System (Goods and Services Tax) Act 1999 (Cth)
GST Law has the meaning given to it in the GST Act
Except where the context suggests otherwise, terms used in this clause have the meanings given to those terms by the GST Act (as amended from time to time)
Any part of a supply that is treated as a separate supply for GST purposes (including attributing GST payable to tax periods) will be treated as a separate supply for the purposes of this clause
“Supplier” is the IBO
“Supplies” is the provision of services for which bonuses are paid
“Recipient” is Amway of Australia
“RCTI” is Recipient Created Tax Invoice
“Tax Invoice” includes an adjustment notice.
7.1 The Supplier warrants that the Supplies are taxable Supplies for GST purposes and will advise the Recipient should any Supplies be GST-free, input taxed or outside the scope of GST.
7.2 The Recipient and Supplier agree that:
7.2(a) The Recipient can issue RCTI in respect of the Supplies;
7.2(b) The Supplier will not issue tax invoices in respect of the Supplies;
7.2(c) The Supplier acknowledges that it is registered when it enters into the agreement and that it will notify the Recipient if it ceases to be registered;
7.2(d) The Recipient acknowledges that it is registered when it enters into the agreement and that it will notify the Supplier if it ceases to be registered or if it ceases to satisfy any of the requirements of any Australian Taxation Office (“ATO”) ruling required for the issuance of an RCTI.
7.2(e) The Supplier indemnifies the Recipient for any liability to tax, over claimed credits and penalties as a result of an error by the Recipient on any supply for which it issues a RCTI that might arise due to the failure of the Supplier to notify cessation of registration, or other ATO requirements;
7.2(f) The above terms are modified in accordance with current GST law and ATO Rulings as required for the issuance of a RCTI from time to time; and
7.2(g) The Supplier will inform the Recipient if he considers that relief from GST should be afforded under the transitional provisions of the GST law. The Recipient will then examine the legal position to determine availability of relief.
7.3(a) The Recipient is not required to make payment of GST to the extent that the Supplier’s liability to make a payment for GST to the Australian Taxation Office has ceased.
7.3(b) If for any reason the Supplier’s liability to GST in respect of any Supplies made by it under the Agreement is increased or reduced, then the amount paid by the Recipient in respect of that Supply must be increased or decreased (as the case may require) by a similar amount.
7.3(c) Any reimbursement of costs will be reduced by the amount of any credits, refunds or other reductions or savings Supplier is entitled to claim or receive in relation to VAT, goods and services tax, fuel tax credits, duties or other taxes or levies.
7.4 PAYG Withholding Tax:
I/We acknowledge that until I am/we are advised by Amway that I/we have achieve the ‘in business’ criteria for the ATO purposes, I/we will not be conducting an enterprise for taxation purposes and consequently will not be required to quote an Australian Business Number (ABN) to Amway; OR I/We am/are carrying on a business under general law and will immediately provide the ABN for my/our enterprise to avoid the requirement for Amway to deduct PAYG withholding from bonuses payable to my/our enterprise.