The Renewable Energy Certificates (RECs) provided to earthXchange may be liable to GST depending on a few factors.

The person who typically owns RECs is the owner of the property at the time of installation, not the installer or provider. The owner and earthXchange are the parties to the agreement. If the installer or supplier provides a point-of-sale discount, they are just acting as a facilitator. For more information, go to the ATO website and read the GST paper briefing on the REC Agents Association website (RAA).

IF YES: Then you are exempt from GST. A tax invoice is not necessary to send to earthXchange.

IF  NO: Do you have a GST registration and are you a business claiming STCs for an installation at a person’s property?

IF  YES: Give earthXchange your paperwork together with an invoice (NOT a tax invoice). Because the owner is not registered for GST, no GST is applied.

IF NO: Do you operate a GST-registered business and are you requesting STCs for an installation at a commercial property?

IF  YES: Send earthXchange a tax invoice. GST is calculated based on the total STC price (STC price + GST).

IF  NO: Are you an installer requesting STCs for work done at a property held by a company that is GST-registered?

IF  YES: Kindly ensure that the company in charge of the property sends earthXchange a direct invoice for the STCs. The system cost is a different transaction from the GST on the STCs.

Note: The above guide is only a recommendation; you must speak with your own accountant.