A Recipient Created Tax Invoice (RCTI, also referred to as a Buyer Created Tax Invoice or BCTI) is an invoice for sales tax purposes that is created by the purchaser of the goods rather than the seller of the goods.
Here's some information from Inland Revenue about Buyer Created Invoices for New Zealand customers.
Before the contractor can receive RCTIs they need to be setup correctly. Go to Manage > People and select the resource you wish to receive RCTIs.
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, to indicate that they are GST registered.
- Enter their Trading Name, if applicable
- Tick Recipient Created Invoices
The RCTIs will be available to the contractor in their Pay tab when they login.
You can set up the Header for your RCTIs to be compliant with local legislation in your Company Settings under Manage > Settings in the Recipient Created Invoice Header field.
Viewing RCTIs from PayHero
PayHero Integrated companies who apply the appropriate settings above to their contractors will have the Payslip Type in PayHero set to 'Buyer Created Tax Invoice', and contractors will be able to view and download their BCTIs from within Invoxy as seen here.
The Header setting above is not required for these companies.
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