Most STC buyers issue the paperwork themselves, which saves installers from writing an invoice for every batch. The tool for that is the RCTI.
How it works
You sell STCs. Normally you would issue a tax invoice to the buyer. With an RCTI agreement, the buyer prepares the tax invoice for the sale and sends it to you, and you keep it as your record.
The ATO conditions generally include that both parties are registered for GST, the supply is covered by a written agreement, the buyer issues the invoice within a set time, and the supplier does not issue its own invoice for the same supply. Check the current ATO requirements for the full list.
What to check
- Written agreement. It should say that an RCTI will be used and that both parties are registered for GST.
- ABN details. Your ABN and legal name on every invoice, matching the registry.
- Timing. The RCTI should arrive shortly after settlement and match the amount paid.
- GST. The invoice should show GST separately where applicable.
- Adjustments. How credits and rejected claims are shown.
Our guide on RCTI, GST and ABN for STC payments goes deeper on ABNs and GST.
Households versus installers
When a homeowner assigns STCs to you for a discount, the tax treatment for the household is different, as covered in is the solar rebate taxable. The RCTI arrangement sits between you and your trader.
What a mismatch looks like
Common RCTI errors include a different legal name from the one on your ABN, GST shown on the wrong line, a total that does not match the bank deposit, and invoices dated well after payment. Fixing these early is simple. Left alone, they can cause problems at BAS time and in any later review. Ask your trader to correct the invoice and reissue it, and keep both versions on file with a note of the change.
What this means for installers
Make sure your trader agreement states how invoices are handled, as listed in contract terms to check. Your bookkeeper needs the RCTIs to reconcile GST in your BAS. For how we settle and what you receive, see how it works and the STC trading page. This is general information, not tax advice.