If you’re registered for goods and services tax (GST) in New Zealand (NZ), you generally need to document every input tax claim and every dollar of output tax you return. In 2023, formatting rules for tax invoices were replaced with a new taxable supply information framework that is comparatively less rigid but still important for businesses to follow.

In this guide, we’ll go over what a valid tax invoice in New Zealand looks like, the Inland Revenue Department (IRD) documentation requirements you need to meet, and when you must claim GST.

What’s in this article?

• What is a tax invoice in New Zealand?
  
• What are the tax invoice requirements in New Zealand?
  
• How does GST work in New Zealand?
  
• When is a tax invoice required to claim GST in New Zealand?
  
• What are some common GST invoice mistakes?
  
• How Stripe Invoicing can help
  

What is a tax invoice in New Zealand?

In New Zealand, a tax invoice was historically a required record to support a GST-taxable transaction between a GST-registered business and its customer. Its purpose was to prove that GST had been charged and that it could be claimed when applicable.

This kind of tax invoice is no longer required under New Zealand’s new rules. Instead, businesses must provide and keep certain records, known as “taxable supply information.”

What are the tax invoice requirements in New Zealand?

Tax invoice requirements in New Zealand have become more flexible in recent years. On April 1, 2023, New Zealand modernized its GST tax invoicing framework, shifting away from rigid documentation rules and toward a more practical, information-based approach. The law no longer requires a document titled “Tax Invoice”; what matters is whether the required information on taxable supplies exists.

Here’s how businesses can fulfill the new requirements:

• Flexible formats: Information can be spread across multiple records (e.g., an invoice, an email confirmation, and a payment record). The revised framework explicitly supports electronic invoicing (e-invoicing) systems and automated recordkeeping.

• Required details: Payment records must include the seller’s details, buyer’s details, information on the goods or services sold, payment information, and date of invoice. How many specifics are needed depends on the type of transaction and its value.

• Buyer-created invoices: Buyer and seller must record the reasons for agreeing to buyer-created taxable supply information if the agreement isn’t part of their normal terms of business. Buyer-created tax invoices no longer need IRD approval.

• Response window of 28 days: If a GST-registered customer requests taxable supply information for supplies over $200 New Zealand dollars (NZD), the supplier must provide it within 28 days unless another time frame is agreed to.

How does GST work in New Zealand?

Taxable transactions in New Zealand generally create two matching entries: GST collected by the supplier and GST claimed by the customer. When a GST-registered business supplies most goods or services, it charges 15% GST and records that amount as output tax. The invoice records what was charged. When a business incurs GST on expenses, it can claim that GST back as input tax, provided it holds sufficient documentation. Without valid taxable supply information, the claim doesn’t stand.

If taxable supply information isn’t provided for a qualifying supply, the buyer can request it. The supplier must respond within 28 days. All supporting records must be retained for at least seven years and be available upon request.

When is a tax invoice required to claim GST in New Zealand?

A tax invoice is no longer required to claim New Zealand GST, but, as a registered business, you must hold sufficient documentation. For purchases of $200 or less, you only need enough evidence to substantiate a transaction, including the supplier’s name, date of invoice or time of supply, a description, and the payment information.

For purchases over $200 and up to $1,000, you must hold additional taxable supply information that meets IRD’s requirements, including the seller’s GST number and a statement of the GST amount. For purchases of more than $1,000, you must include the buyer’s name and one of the following pieces of information: their address, phone number, email, trading name (if different from their name), a New Zealand Business Number (NZBN), or a URL for their website.

What are some common GST invoice mistakes?

GST issues can arise from missed details, outdated systems, or misguided assumptions. These small oversights can often be easily avoided.

Watch for the following:

• Missing GST numbers: You need one for amounts exceeding $200.

• Claiming GST where none was charged: Nonregistered businesses can’t charge GST.

• Incorrect GST calculations: Errors in applying the 15% rate or inconsistencies with the subtotal, GST, and total amounts can cause headaches.

• Misapplying the $200 threshold: You don’t want to overdocument or underrecord.

• Focusing on labels instead of content: Formatting doesn’t determine validity. What matters is whether the required information is present.

• Poor record retention: Lost or inaccessible records undermine valid claims.

Automated tools such as Stripe Tax and Stripe Invoicing make it easy to generate compliant GST invoices or taxable supply information while avoiding common mistakes.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customise, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.

• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders, and AI-powered dunning tools that help you recover more revenue.

• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies, and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.

Learn more about how Stripe can simplify your accounts receivable process, or get started today.