New rules on GST invoicing apply from 1 April 2023. These changes have been designed for 21st century business record-keeping and modernise invoicing rules in place since 1986, based on paper-based record-keeping systems.
It’s important to note there are no changes to the imposition or calculation of GST – these new rules only relate to information requirements. Inland Revenue has now produced the taxable supply information.
The good news is you don’t actually need a tax invoice anymore. It’s voluntary.
New names.
Firstly, it’s time to learn some new names:
Instead of a tax invoice you supply “Taxable supply information”
Instead of a debit or credit note you supply “Correction information”
Instead of buyer created tax invoice you supply “buyer-created taxable supply information”
It is going to be sufficient to hold the taxable supply information in any way you like so long as you have all the information.
New thresholds.
After about 36 years the thresholds have changed.
Amounts less than $200.
- Name of supplier.
- Either the date of the invoice or if no invoice the time the goods were supplied.
- A description of goods or service.
- Amount paid.
You must have a piece of paper, which confirms the transaction and contains the minimum of the above information. It could be a receipt but no documentation at all would not be acceptable.
Amounts between $200 and $1000.
- Add GST number.
Add either the GST exclusive amount, the amount of GST being added and the GST inclusive amount or the GST inclusive amount and a statement saying it is GST inclusive
Amounts over $1000.
You now have to put in the buyer details being:
- Name.
- Address.
- Phone number.
- Email address.
- Trading name if different from the name of the supplier.
- New Zealand business number or URL address for their website. We take the word “their” to be the address for the New Zealand business number, which is https://www.nzbn.govt.nz/.
Points to note:
- If you are issuing invoices, update the information on your invoice to comply.
- If you might be charging more than $1000, make your invoice contain all the information required.
Notice email addresses are compulsory. Some big and important firms force their customers to contact them by telephone only. In future, you will at least be able to send an email even if it is only to the accounts section.
There is no guarantee you’ll get an answer.
WHAT INFORMATION DO I NEED TO KEEP?
If you have any questions, or would like to find out more, please get in touch with one of the team today.