What Is a Statement by a Supplier and When Should I Use One?

If you receive a supplier invoice and no ABN has been quoted, you may need to do some further investigation before you make any payment.

What Is a Statement by a Supplier?

A Statement by a supplier is an ATO form used when a supplier does not quote an Australian Business Number (ABN). Without an ABN, payers are usually required to withhold 47% from the payment and remit it to the ATO with the next BAS. However, in certain circumstances a Statemetn by a Supplier form can be provided. This form explains why this withholding the 47% is not required.

When Can a Supplier Use This Form?

A supplier can only complete a Statement by a supplier in limited circumstances, such as when:

• 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 $350 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 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.

• The supplier is an individual and has given the payer a written statement to the effect that the supply is either:

  • made in the course or furtherance of an activity done as a private recreational pursuit or hobby, or

  • wholly of a private or domestic nature (from the supplier’s perspective).

    
    

Who Cannot Use a Statement by a Supplier?

The form cannot be used if the supplier:

• Is being paid as an employee

• Is acting as a company director or office holder

• Is working under a labour hire arrangement

• Is a religious practitioner receiving payments

• Is operating a business and is entitled to an ABN

When Does Withholding Apply?

If a supplier does not quote an ABN and no valid exception applies, the payer must withhold 47% from the payment. This applies even if the supplier asks not to have tax withheld.

If a payer believes a statement is false or misleading, they must withhold and report the amount to the ATO.

Tips and Tricks

1. Before engaging any suppliers, ensure that they have a valid ABN and review their GST Registration status on the ABN Look Up page. Here, you will also be able to check that their ABN is valid.

2. For any suppliers who advise that they do not have an ABN, ask them to review and return (if appropriate), the Statement By A Supplier form.

3. If they advise that they cannot meet the requirements to complete the form, you should advise that 47% of the total invoice will need to be withheld on payment.

Further Information

The official ATO guidance and form are available at:

https://www.ato.gov.au/forms-and-instructions/statement-by-supplier-not-quoting-an-abn