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Key takeaways
- A recipient created tax invoice is a tax invoice issued by the buyer on behalf of the supplier, so the supplier does not issue its own.
- Both sides must be registered for GST and have a current written agreement that the buyer may issue RCTIs and the supplier will not.
- The goods or services must be ones the Commissioner of Taxation has determined can be invoiced this way.
- The buyer must give the supplier the RCTI within 28 days and keep a copy.
Free PDF and Excel: RCTI agreement checklist and tracker. Get it below
What an RCTI is
A recipient created tax invoice is a tax invoice that the buyer of a taxable supply issues in place of the supplier, under an agreement between the two and within the rules set by the Australian Taxation Office.
It suits high-volume, low-friction relationships, such as farmers supplying produce to a processor or tradespeople billing to a platform, where the buyer already knows quantity and price and the supplier would otherwise spend time raising bills. The buyer sends the RCTI and the payment, and the supplier files the document for its own GST records.
A grain merchant buys wheat from 40 growers each season. Rather than wait for each grower to send an invoice, the merchant issues an RCTI for each delivery after weighing, with the grower's ABN, the tonnes, the price and the GST amount. The growers are paid the same week.
The merchant has a written agreement with each grower, confirms both sides are GST-registered, and sends each RCTI within 28 days.
Conditions from the ATO
| Condition | What it means |
|---|---|
| GST registration | Both buyer and supplier are registered for GST when the RCTI is issued |
| Written agreement | The agreement says the buyer may issue RCTIs and the supplier will not |
| Agreement is current | It is still in effect when the RCTI is issued |
| Commissioner determination | The goods or services are covered by a determination that allows RCTIs |
Free PDF and Excel
RCTI agreement checklist and tracker
A checklist to set up RCTIs correctly, a template statement and a tracker that flags RCTIs approaching the 28-day limit.
- Set-up checklist
- RCTI content list
- Issue tracker layout
- Excel tracker that works out days to the deadline
What the RCTI must show
| Field | What goes in it | Why it matters |
|---|---|---|
| Statement that it is an RCTI | The document says so. | The tax rules treat it differently from a supplier invoice. |
| Buyer and supplier ABNs | Both identities and ABNs. | Both are needed for GST credits. |
| Date of issue | The day it is issued. | Starts the 28-day clock for delivery. |
| Description of the supply | Items, quantity and price. | Backs the amount. |
| GST amount | The GST payable, or a statement that the price includes GST. | Shows tax separately. |
| Who pays the GST | That the supplier is the one liable for the GST. | A required statement. |
The ATO also expects the buyer to give the RCTI to the supplier within 28 days of the sale or of working out the value, and to keep a copy. The ATO's normal tax invoice thresholds are on our Australian tax invoice page. Where the supplier's own invoice is needed instead, see vendor invoice and self-billing invoice, which is the same idea under UK and EU wording.
Last checked: 19 October 2026. Conditions and the 28-day rule checked against the ATO page on tax invoices. The goods and services eligible are set by the Commissioner's determination. Confirm the current list with the ATO or your registered tax agent.
Typical errors
- No written agreement before issuing RCTIs.
- The supplier also issues its own invoice for the same supply.
- Missing the statement that the document is an RCTI.
- RCTIs issued late, after 28 days.
- Using an RCTI for a supply the determination does not cover.
- Both parties are GST-registered.
- Written agreement says the buyer issues and the supplier does not.
- Agreement is current.
- The supply is covered by the determination.
- Template shows RCTI, both ABNs and GST.
- A process sends within 28 days and keeps copies.
Frequently asked questions
What is a recipient created tax invoice?
A tax invoice that the buyer issues for a supply, in place of the supplier, under a written agreement and the ATO rules.
Can any business issue an RCTI?
Only if both sides are registered for GST, there is a current written agreement and the supply is one the Commissioner has determined can be covered.
How soon must an RCTI be issued?
The buyer must issue the original or a copy to the supplier within 28 days of the sale or of determining its value, according to the ATO.
Does the supplier still need to issue an invoice?
No. The agreement says the supplier will not issue tax invoices for those supplies.
Is an RCTI the same as self-billing?
They are close. Self-billing is the UK and EU term. Rules differ by country.