Under the GST rules, a buyer can issue the tax invoice for a supply on the seller’s behalf if the parties have agreed in writing and certain conditions are met. For STCs this is the norm. The trader raises a recipient created tax invoice, an RCTI, when they buy your certificates, so you are not chasing paperwork for each batch. This is general information and not tax advice.
Why traders use RCTIs
STC sales are high volume, low value, and repetitive. If every installer had to invoice every sale, there would be delay and errors. An RCTI lets the trader batch it and pay you from a single, consistent document.
What the agreement does
You sign an agreement that says the trader will issue RCTIs for your STC sales, that both of you are registered for GST (or that you are not), that you will tell them if your registration changes, and that you will not issue your own invoices for the same supplies. Keep a copy. Our RCTI, GST and ABN guide covers it.
What an RCTI should show
- The words “recipient created tax invoice” or similar.
- Your name and ABN, and the trader’s.
- The date and a description of what was sold, including the number of STCs.
- The price and the GST amount.
- The total.
Checking each one
Check the STC count against your claim, the price against the rate you locked, and the GST against your registration status. If any is wrong, raise it straight away. An error left uncorrected becomes your problem at BAS time.
From the desk: if your GST registration changes, tell your trader before the next RCTI is raised, not after.
Record keeping
Keep every RCTI, and reconcile it against your claim list at the end of each month. Matching the STC counts, dates and totals is quick, and it picks up errors before they flow into your BAS. If you ever need to prove income or GST for a particular job, the RCTI is your evidence.
What this means for installers
An RCTI is a convenience, but only if you read it. See GST on STC sales and do I charge GST on STCs for the tax questions, how it works for the process and the resources hub for more guides.