REGATTA ENTRY PROCESSING

From the 1st July 2018, Rowing Victoria ('we' or 'our') changed it’s regatta entry invoicing process to comply with an ATO private ruling determination that confirmed that Rowing Victoria is an agent of the regatta organising committee. The invoicing procedure had to change because the documents provided to member Clubs and Schools vary depending on whether the organising committee is registered for GST or not.

Registered for GST

Where the organising committee is registered for GST, Rowing Victoria will:

• Publish regatta entry fees on a GST inclusive basis.
• Issue members with Tax Invoices for their regatta entries showing the seat fee and the included GST.  These invoices will allow members to claim input tax credits where appropriate.
• Provide a Recipient Created Tax Invoice to the organising committee showing the total number of entered seats, the seat fee, and the included GST.  The RCTI includes an RCTI Agreement and a 153-B Agreement between Rowing Victoria and the organising committee.
• Issue a Tax Invoice to the organising committee for oar fees, the rescue and first aid levies and any other costs that we have incurred on behalf of the organising committee.
• Collect the entry fees from members and net off the RCTI and our Tax Invoice before remitting the balance to the organising committee.

This process, and the documentation provided, is essentially the same as has occurred prior to the 1st July 2018.

Not registered for GST

Where the organising committee is not registered for GST, Rowing Victoria will:

• Publish regatta entry fees on a GST exclusive basis.  Entry fees will be 10/11ths of the GST inclusive fees specified in our rules. 
• Issue members with an Entry Invoice for their regatta entries showing the seat fee. No GST will be included, and members can not claim an input tax credit.
• Advise the organising committee of the number of entered seats and request an Invoice. No GST can be included in this Invoice.
• Issue a Tax Invoice to the organising committee for oar fees, the rescue and first aid levies and any other costs that we have incurred on behalf of the organising committee.
• Collect the entry fees from members and net off the organising committees Invoice and our Tax Invoice and remit the balance to the organising committee.

Whilst this is similar to the existing process, the documents provided differ recognising that regatta entry fees will not include GST, and that members will no longer receive input tax credits.

Implications for member Clubs and Schools

This private ruling has implications where a member is registered for GST and the organising committee is not, and affected members should seek appropriate advice taking into consideration their processes for passing regatta entries through to their members, and anybody else for that matter.

For example, where an organising committee is not registered for GST and the member is registered and passes entry fee costs through to its members via a Tax Invoice, then the member may need to add GST to the entry fee that we have invoiced as agent for the organising committee.   

In contrast, where a member is not registered for GST and it passes entry fee costs through to its members via an Invoice, the member may invoice the entry fee that we included in our Entry Invoice or Tax Invoice.

GST Definitions

ABN: Australian Business Number. The ABN is a public number that gives businesses in Australia a single identification number to use when dealing with a range of government departments and agencies.

Acquisition: The purchase of goods or services

ATO: Australian Taxation Office

GST: Goods and Services Tax as defined in A New Tax System (Goods and Services Tax) Act 1999

Input Tax Credit: An entitlement arising under section 11-20 or 15-15 of A New Tax System (Goods and Services Tax) Act 1999. The amount of an input tax credit for a creditable acquisition is an amount equal to the GST payable on the supply of the acquisition

Invoice: An invoice is a document sent by a seller showing the price of a sale and notifying of an obligation to make a payment.

Recipient: Entity who receives a supply of goods or services

Recipient Created Tax Invoice (RCTI): An invoice which is issued by the entity that receives the taxable supply (the recipient) rather than the actual supplier. This is permitted where both the recipient and the supplier are registered for GST and at the time the RCTI is issued, they have a current written agreement with each other which states which supplies are covered. The ATO must have determined that those supplies are of a kind that can have RCTIs issued.

Supplier: Entity who supplies goods or services

Tax Invoice: A tax invoice is a document generally issued by the seller. It shows the price of a sale, indicating whether it includes GST, and may show the amount of GST. You must have a tax invoice before you can claim a GST credit on your activity statement for purchases of more than $82.50 (including GST).

Additional information, and a comprehensive list of GST terms is available here.

Scope of change

For clarity, this change only applies to invoicing of regatta entries.  Late entry fees, late scratchings, non-appearance and any other fines that may be incurred at a regatta under our rules will be invoiced on a GST inclusive basis via a Tax Invoice.

Of necessity, this will mean that late entries will be invoiced separately to regatta entries where the organising committee is not registered for GST.