GST Invoice Rules for New Zealand Contractors

If you're a contractor, tradesperson, or freelancer in New Zealand, understanding GST invoice rules is essential for staying compliant with Inland Revenue (IRD) and getting paid correctly. The rules changed in April 2023—"tax invoice" was replaced with "Taxable Supply Information" (TSI)—and many contractors aren't sure what they need to include, when to provide it, or how often to file. Getting it wrong can mean missed GST claims for your customers, penalties from IRD, or disputes over payment. This guide covers the GST registration threshold, tax invoice (TSI) requirements, buyer-created invoices, record-keeping, and filing frequency so you can invoice with confidence.

GST Registration Threshold in New Zealand

Before you worry about invoice format, you need to know whether you must register for GST.

Mandatory Registration

You must register for GST if you carry out a taxable activity and either:

• You add GST to the price of goods or services you sell, or
• Your turnover was $60,000 or more in the last 12 months, or is expected to reach that in the next 12 months

The $60,000 threshold applies to your total taxable supplies in any 12-month period—either based on past sales or projected sales.

Voluntary Registration

If your turnover is below $60,000, you can choose to register voluntarily. This can be useful if:

• You have significant startup costs and want to claim GST back on purchases
• Your clients expect tax invoices so they can claim GST credits
• You're close to the threshold and want to avoid a sudden registration requirement

Once registered, you must charge 15% GST on taxable supplies and file GST returns.

GST Rate

The standard GST rate in New Zealand is 15%.

Tax Invoice Requirements – Taxable Supply Information (TSI)

Since April 2023, the term "tax invoice" has been replaced with Taxable Supply Information (TSI). You can still use the words "tax invoice" on your documents—they're no longer required, but they're still acceptable. What matters is that you provide the correct information in the right format.

Invoices $200 or Less

For supplies of $200 or less (including GST) to non-GST registered buyers:

• There's no requirement to provide taxable supply information to the buyer
• You must still keep records of the transaction for your own GST returns

For GST-registered buyers, you should still provide the information if they need it to claim GST credits.

Invoices Over $200 and Up to $1,000

For supplies over $200 and up to $1,000, your taxable supply information must include:

• Your GST number and name
• The date of supply
• A description of the goods or services
• The GST amount shown separately, or a statement that GST is included
• The GST-inclusive total amount

Invoices Over $1,000

For supplies over $1,000, you need everything above, plus:

• The buyer's name and physical address
• The quantity or volume of goods or services supplied

Timing Rules

• For GST-registered buyers, you must provide taxable supply information within 28 days of the date of supply (for supplies over $200).
• For non-GST registered buyers, you have 28 days from when they request the information.

Format Flexibility

You no longer need a single physical document. Taxable supply information can be provided in any format—email, electronic invoice, e-invoicing system—and can be supported by contracts, bank statements, or supplier agreements in combination.

Buyer-Created Tax Invoices

In some situations, the buyer can create the taxable supply information instead of the seller. This is useful when the buyer is better positioned to determine pricing or wants to standardise invoicing across multiple suppliers. Key requirements:

• Both parties must be GST registered
• The buyer and seller must agree in writing that only the buyer will provide the taxable supply information
• The document must include both parties' GST numbers and standard taxable supply information
• Both parties must keep a copy

Since April 2023, buyer-created arrangements no longer need IRD approval—a written agreement between the parties is sufficient. If you're a contractor and a client creates the invoice, ensure you've agreed to this and that the details are correct.

Record-Keeping Requirements

IRD requires you to keep records of all taxable supplies and purchases. Key points:

• GST receipts: The threshold for keeping GST receipts increased from $50 to $200 (including GST). You must keep receipts for purchases of $200 or more.
• Retention period: Keep records for at least 7 years from the end of the tax year they relate to.
• Format: Records can be kept in electronic form, provided they're readable and can be produced when IRD requests them.

Good record-keeping makes filing your GST returns easier and protects you in an audit. For tips on structuring your invoices, see how to write an invoice as a sole trader.

GST Filing Frequency

Once registered for GST, you must file returns. The frequency depends on your turnover:

• Six-monthly (twice a year): Turnover under $500,000 and you choose this option
• Two-monthly: Turnover under $500,000 (default for many small businesses)
• Monthly: Turnover of $500,000 or more, or you choose monthly filing

Your first return period is assigned when you register. You can apply to change your filing frequency if your turnover changes.

GST and Quotes

When you provide a quote, state clearly whether the price includes or excludes GST. Common wording:

• "All prices exclude GST. GST will be added at 15%."
• "Total $1,150 (inc. GST)"

This avoids confusion when you convert the quote to an invoice. For more on the difference between quotes and invoices, see invoice vs quote.

Summary

New Zealand GST rules require registration if your turnover reaches $60,000 in any 12-month period. The standard GST rate is 15%. Since April 2023, "tax invoice" has been replaced with Taxable Supply Information (TSI)—you can still use "tax invoice" as a label, but the content matters. For supplies over $200, include your GST number, name, date of supply, description, GST amount, and total. For supplies over $1,000, add the buyer's name and address and the quantity. Provide TSI within 28 days for GST-registered buyers. Buyer-created invoices are allowed in certain circumstances. Keep records for at least 7 years, and file GST returns according to your assigned frequency (six-monthly, two-monthly, or monthly). With these rules in place, you'll stay compliant with IRD and invoice correctly.