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khayejhaye(Newbie)Newbie
1 Apr 2022

Background information: We offer grants to people to get them to control weeds on their property and also to provide the same service to their neighbours if their neighbours don't have the proper equipment to do so. One or more of the suppliers has filled out a Statement by Supplier. In the "reasons for not quoting an ABN", they check "The supplier is not entitled to an ABN as they are not carrying on an enterprise in Australia", however most of these people actually have businesses.

Question: Does "not entitled to an ABN" in this instance mean not entitled to one for the type of service they are supplying or does it mean not entitled to one AT ALL?

I need to know whether we are correctly not withholding tax to these suppliers.

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2,789 views
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Most helpful reply

EthanATO(Community Support)Community Support
2 Apr 2022

Hi @khayejhaye,


In this case it sounds as though they wouldn't be entitled to an ABN for the specific service they're providing. Even though they may have a business already, if this supply isn't a part of that business activity, they woudn't need to quote their ABN for it.


The statement by supplier is so you can justify your reason for not withholding tax. The statement is their declaration and you're doing what's right by what they've told you. That means you're correct in not withholding tax.



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Most helpful reply

EthanATO(Community Support)Community Support
2 Apr 2022

Hi @khayejhaye,


In this case it sounds as though they wouldn't be entitled to an ABN for the specific service they're providing. Even though they may have a business already, if this supply isn't a part of that business activity, they woudn't need to quote their ABN for it.


The statement by supplier is so you can justify your reason for not withholding tax. The statement is their declaration and you're doing what's right by what they've told you. That means you're correct in not withholding tax.



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Statement by Supplier - what is the meaning of "not entitled to an ABN" | ATO Community