RCTI Generator

What is an RCTI and when do you need one?

A Recipient Created Tax Invoice (RCTI) is a GST tax invoice issued by the buyer (recipient) rather than the supplier. This arrangement is used when the buyer is better placed to determine the value of the supply — for example, payments to agricultural growers (where the market price is known only at the time of delivery), construction subcontractors paid on measured quantities, freelancers or commission agents, and similar variable-value supply arrangements. Instead of waiting for the supplier to invoice, the recipient calculates the amount payable and issues the RCTI on the supplier's behalf.

RCTIs are commonly used in agriculture (grain growers, livestock, horticulture), mining services, construction subcontracting, and media or advertising commission arrangements. In each case, the buyer has access to the pricing information — market rates, measured quantities, or commission calculations — before the supplier does.

Under ATO rules (GST Ruling GSTR 2000/10), an RCTI is only valid when: (1) both parties are registered for GST; (2) a written RCTI agreement exists between the parties before the document is issued; and (3) the agreement states that the recipient will issue tax invoices for the supply, and that the supplier will not issue separate tax invoices for those same supplies. Every RCTI must include the mandatory statement: "The recipient created this tax invoice. The supplier must not issue a tax invoice for this supply." Without this exact statement, the document is not a valid tax invoice for GST purposes. Always confirm your specific arrangement meets ATO requirements with your accountant or tax adviser.

How to use this RCTI generator

1. Enter your business details (the recipient/buyer) and the supplier's name and ABN. Both parties must be GST-registered.
2. Add a unique RCTI number, the issue date, and a reference to the written RCTI agreement between you and the supplier.
3. List the supplies covered, with a description, quantity, rate, and the GST amount. The mandatory ATO statement is included automatically.
4. Download the PDF and provide a copy to the supplier. File the original with your RCTI agreement for at least five years.

What happens if the supplier also issues a tax invoice for the same supply?

This is a critical compliance risk. If both the supplier and the recipient issue a tax invoice for the same supply, the ATO may treat this as a GST error — and the supplier could be liable for the GST again. The written RCTI agreement must prohibit the supplier from issuing their own invoice for any supply covered by the RCTI arrangement. If you receive a duplicate supplier invoice, contact them immediately to cancel it.

Does the supplier need to be registered for GST?

Yes. Both the recipient (buyer) and the supplier must be registered for GST for an RCTI arrangement to be valid. If the supplier is not GST-registered — for example, a sole trader below the $75,000 threshold — an RCTI cannot be issued. In that case, the supplier would need to provide a standard invoice (without GST) and the buyer would pay accordingly.

Can I use an RCTI for all my subcontractors?

Not automatically. Each RCTI arrangement requires a signed written agreement with the specific supplier before any RCTIs are issued. You cannot apply a blanket RCTI arrangement across all suppliers without an individual agreement in place. Ensure your legal or accounting adviser reviews the agreement template before you begin issuing RCTIs at scale.