Statement by a supplier
(reason for not quoting an ABN to an enterprise)
n order forms
This fact sheet provides guidance on:
n pay as you go (PAYG) withholding from payments for
n contracts or lease documents
n letterheads, emails or internet records (web pages)
n the requirements for quoting an Australian business
n records of over-the-phone quotation of an ABN and/or
n catalogues (and other promotional documents) the supplier
When you pay suppliers who provide goods or services to
your business, those suppliers generally need to quote an
You must keep this information with other records relating to
ABN. They can quote their ABN on an invoice or some other
document that relates to the goods and/or services they
provide. If any supplier does not provide their ABN, you may
need to withhold an amount from the payment for that supply.
do not have to check whether the ABN is valid.
ou do not have to check whether the ABN is valid.
This is sometimes referred to as ‘No ABN withholding’.
However, if you suspect that the ABN quoted does not
belong to the supplier or the supplier’s agent, you can
Withholding from Payments
check it by either visiting www.abr.business.gov.au or
phoning the Tax Office on 13 72 26, 24 hours a day, seven
Generally, you must withhold 46.5% of the total payment for
days a week.
a supply unless:
n you have an invoice or some other document relating to the
supply on which the supplier’s ABN is quoted
When Withholding is not reQuired
n the ABN of the supplier’s agent is quoted (if the supply is
made through the agent), or
You do not have to withhold an amount from a payment if:
n the payer is not making the payment in the course of
n one of the exceptions to withholding applies or the supplier
is not entitled to an ABN.
carrying on an enterprise in Australia
n the payment is $75 or less, excluding any goods and
You may also be required to withhold 46.5% from the payment
services tax (GST)
if you have reasonable grounds to believe that the ABN quoted n the supply that the payment relates to is wholly input-taxed,
is invalid (for example, it belongs to another entity).
n the supplier is an individual and has given you a written
Quoting an aBn
statement which says:
A supplier must quote their ABN by the time the payment is
– the supply relates to a private recreational pursuit or
made to prevent 46.5% of that payment being withheld.
A supplier may quote their ABN on an invoice or other
– the supply is wholly of a private or domestic nature for
document relating to the supply.
Documents on which an ABN may be quoted include:
However, you should withhold if you have reasonable
grounds to believe that this statement is false or misleading.
n The supplier is an individual aged under 18 years and the
payment does not exceed $120 a week.
n renewal notices (such as for insurance or subscriptions)
STATeMeNT BY A SuPPlIer (reASON FOr NOT quOTING AN ABN TO AN eNTerPrISe)
You also should not withhold an amount from a payment if you
if you are reQuired to Withhold
are satisfied that:
If you are required to withhold an amount, you must:
n the supply is made by an individual or partnership without
n be registered for PAYG withholding. This can be done by
a reasonable expectation of profit or gain
phoning 13 28 66 between 8.00am and 6.00pm Monday to
n the supplier is not entitled to an ABN as they are not carrying
Friday. You may already be registered if you are withholding
on a business or enterprise in Australia, or
from other payments, such as wages to employees.
n the whole of the payment is exempt income for the supplier.
n withhold 46.5% of the payment unless an exception applies.
n report and pay the withheld amounts to the Tax Office using
your activity statement.
If a supplier has applied for an ABN, they may ask you
to hold back payment until the ABN has been obtained and
n complete a PAYG payment summary – withholding where
ABN not quoted
(NAT 3283), providing a copy to the supplier
quoted. This is a matter for you and the supplier to work
at the time of payment or as soon as possible afterwards.
out. However, unless one of the above exceptions applies,
Suppliers can use the payment summary to claim a credit in
you must withhold 46.5% of the payment if it is made
their income tax return for the amount withheld.
before an ABN is quoted. If you do not withhold from the
payment, you may have to pay a penalty equal to the
n keep a copy of the payment summary with your records.
amount you should have withheld.
n complete a PAYG withholding where ABN not quoted –
informing the Payer if no Withholding
if you do not Withhold When reQuired
You may be subject to penalties if you do not withhold an
As the payer, you may request a written statement from the
amount when required. The penalty will be equal to the amount
supplier to justify not withholding if the supply:
that should have been withheld. It is an offence not to withhold
n relates to a private recreational pursuit or hobby
and the payer may be prosecuted in appropriate cases.
– For example, a hobby artist receives a prize of $100 in
a shopping centre art show.
If you need more information about ABNs, you can:
n is wholly of a private or domestic nature for the supplier.
– For example, a home owner sells some personal furniture
n visit www.ato.gov.au
to a second hand store.
n phone the Tax Office on 13 28 66 between 8.00am and
6.00pm Monday to Friday, or
As a minimum, the statement should contain:
n speak to your tax adviser.
n the supplier’s name and address
If you do not speak english well and want to talk to a tax
n why it was not necessary to withhold, and
officer, phone the Translating and Interpreting Service on
n the supplier’s signature.
13 14 50 for help with your call.
The Tax Office has developed a form, Statement by a supplier
If you have a hearing or speech impairment and have
which is attached to this fact sheet and can be used for
access to appropriate TTY or modem equipment, phone
13 36 77. If you do not have access to TTY or modem
If you do not withhold because an exception applies, you should
equipment, phone the Speech to Speech relay Service
keep sufficient records to:
on 1300 555 727.
n identify the supply and the supplier, and
n justify the reason for not withholding.
our commitment to you
You may choose to obtain a signed statement from the supplier
The information in this publication is current at April 2008.
containing the required information or use our form. If we
conduct a review and find that the statement was incorrect, you
won’t be penalised if we believe it was reasonable for you to rely
on the supplier’s signed statement.
© commonWealth of australia 2007
This work is copyright. Apart from any use as permitted under the Copyright Act 1968
Australian Taxation Office
no part may be reproduced by any process without prior written permission from the
Commonwealth. requests and inquiries concerning reproduction and rights should
be addressed to the Commonwealth Copyright Administration, Attorney-General’s
Department, robert Garran Offices, National Circuit, Barton ACT 2600 or posted at
statement by a supplier
Complete this statement if you:
hoW to comPlete the statement
n are an individual or a business
n Print clearly in BlOCK leTTerS using a black pen only.
n have supplied goods or services to an other enterprise (the
n use BlOCK leTTerS and print one character in each box.
S M I T H
n are not required to quote an Australia business number (ABN).
Payers must withhold 46.5% of the total payment it makes to
n Place X in All applicable boxes.
you for a supply that you make as part of your enterprise you
carry on in Australia, unless an ABN has been quoted or there is
no need to quote an ABN.
Section A: supplier details
1 your name?
2 your address?
3 your reason/s for not quoting an aBn?
Place X in the appropriate box/es.
The payer is not making the payment in the course of carrying on an enterprise in Australia.
The supplier is an individual aged under 18 years and the payment does not exceed $120 a week.
The payment does not exceed $75, excluding any goods and services tax (GST).
The supply that the payment relates to is wholly input taxed.
The supplier is an individual and has given the payer a written statement to the effect that the supply:
is made in the course or furtherance of an activity done as a private recreational pursuit or hobby, or
is wholly of a private or domestic nature (from the supplier’s perspective).
The supply is made by an individual or partnership without a reasonable expectation of profit or gain.
The supplier is not entitled to an ABN as they are not carrying on an enterprise in Australia.
The whole of the payment is exempt income for the supplier.
Section B: declaration
under pay as you go (PAYG) legislation and guidelines administered by the Tax Office, the named supplier is not quoting an ABN
for the current and future supply of goods or services for the reason or reasons indicated.
Name of supplier (or authorised person)
Signature of supplier (or authorised person)
Daytime phone number
Penalties apply for deliberately making a false or misleading statement.
Do not send this statement to the Tax Office.
Payers can check ABN records of suppliers by visiting
Give the completed statement to any payer that you are
www.abr.business.gov.au or phoning 13 72 26 24 hours a
supplying goods or services to. The payer must keep this
day, 7 days a week.
document with other records relating to the supply for 5 years.