RCTI (Recipient Created Tax Invoice)
An RCTI is a tax invoice issued by the buyer (builder) instead of the seller (subbie). Both parties must be GST-registered. Useful for milestone payments.
Ask Chalkline about this →A Recipient Created Tax Invoice (RCTI) is a GST tax invoice that is issued by the buyer (the principal contractor or builder) instead of the supplier (the subcontractor). Normally the supplier issues the tax invoice; an RCTI reverses this where it is more practical for the payer to determine and document the value of the supply, such as milestone or progress payments on construction work.
For an RCTI to be valid under the Recipient Created Tax Invoice Determination 2023 (LI 2023/20): both the builder and the subbie must be registered for GST; there must be a signed written agreement between the parties (verified 2026-05-11); the RCTI must be issued within 28 days of the supply or value determination; and building and construction services must be the subject of the supply. The written agreement can be a standalone document or embedded in the subcontract.
RCTIs are common on larger residential projects where the builder assesses the value of work completed each fortnight or at each stage rather than waiting for the subbie to invoice.
Also known as: Recipient Created Tax Invoice
Category: Tax and invoicing
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Last updated: 2026-05-11. Verified: 2026-05-11. Quarterly review for currency.