New Invoicing Rules

The new GST invoicing rules will allow greater flexibility and easier record keeping. Invoices compliant with the current rules will also be compliance with the new rules. New terminology is being introduced.

The new terms will include:

1. Taxable supply info instead of tax invoice
2. Supply correction Info instead of Debit/Credit note
3. Buyer created taxable supply info instead of buyer created tax invoice

For taxable supply Information, a minimum set of information must be kept by buyers and sellers as evidence of a transaction. The new rules will also mean that the required info can be held in other forms such as bank statements, contracts and supplier agreements.

The information required is dependent on the value and type of supply.

From 1 April 2023, the thresholds are :

1. $200 or less
2. Between $200 and $1,000
3. More than $1,000

As the value of the supply increases, the taxable supply information required will also increase. If you cannot meet the usual requirements for taxable supply of information, you can apply to IRD for approval to provide other information instead.

What information must be provided?

For supplies $200 or less:

• Seller’s name or trade name
• Date of invoice
• Description of good/service
• Total Amount payable

For supplies between $200 and $1,000:

• Seller’s name or trade name
• Sellers GST number
• Date of invoice
• Description of good/service
• Total Amount payable
• A clear indication of the amount of GST included in the sale price

For supplies more than $1,000:

• Seller’s name or trade name
• Sellers GST number
• Date of invoice
• Description of good/service
• Total Amount payable
• A clear indication of the amount of GST included in the sale price
• Information to identify the buyer of the goods/service

 If you cannot meet the usual requirements for taxable supply of information, you can apply to IRD for approval to provide other information instead.

Shared Invoices

Two or more GST registered persons can form a supplier group and issue shared invoices to buyers. Members of the supplier group cannot be a part of the same GST group. If 2 or more registered persons are already part of the GST group, they must use GST rules instead.

The issuing member of the supplier group will need to provide taxable supply information including the name and registration number of the member making the supply or the issuing member.

Supply Correction Information

There will be more situations where supply correction information must be provided. It must be provided when:

• The taxable supply information includes incorrect information
• The seller has included an incorrect GST amount in their return

For further detail or clarification on the issues above or any other tax related concerns contact our team, we would love to help you.

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