A Buyer Created Tax Invoice (BCTI, also referred to in other countries as a Recipient Created Tax Invoice or RCTI) is an invoice for sales tax purposes that is created by the purchaser of the goods rather than the seller of the goods. (Source)
Here's some information from Inland Revenue about Buyer Created Invoices for New Zealand customers.
Before the contractor can receive BCTIs they need to be setup correctly. Go to Manage > People and select the resource you wish to receive BCTIs.
To set them up you will need to:
- Tick that they are a Business
- Enter their Business Tax Number (even if it is identical to their personal Tax Number)
- Enter their Trading Name
- Enter their declared Withholding Tax rate
The BCTIs will be available to the contractor when they login in their payroll tab.
Set up the Header for your BCTIs to be compliant with local legislation in Manage > Settings under BCI Header.
Sending Earnings and Withholding Tax to FlexiTime
If withholding tax has been applied in Invoxy in the setup of the contractor then it will be applied as a tax in FlexiTime automatically when it is sent through a payrun. To apply GST ensure you've entered the contractor's GST number in the Business Tax Number field.
(What is FlexiTime?)