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Tuesday, 1 January 2013

What happens if a supplier does not quote a valid ABN?

If a valid ABN is not included on your suppliers invoice or other document relating to the transaction, you must:
  • Withhold 46.5% of the payment;
  • If you are not already registered for PAYG withholding, you must register as soon as possible;
  • Pay the remaining 53.5% to the supplier;
  • Give the supplier an original copy of a ‘PAYG payment summary – withholding where ABN not Quoted’ form and retain a copy for your records;
  • Remit the total of the amounts withheld for the period on your activity statement at item W4;
  • Lodge your activity statement and make the required payment by the due date; and
  • At the end of the year, complete the ‘PAYG withholding where ABN not quoted – annual report’ form and lodge it with the Tax Office by October 31.

An exemption from these rules may be available if:
  • The payment for the full supply is $75 or less (excluding GST); or
  • The supplier provides you with a completed form titled ‘Statement by a supplier’ providing the reason why an ABN has not been quoted. For a copy of this form, click here.
For more information, click here.

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