Tax invoice
Tax invoice example for New Zealand with GST at 15%
Since April 2023 New Zealand no longer requires a tax invoice as such, but a GST registered seller must give taxable supply information that depends on the size of the sale. This example from a Christchurch tree care company to a retirement village shows a $6,270 job with GST at 15%, the seller's GST number, and the buyer's details because the sale is over $1,000.
The invoice, page by page
The invoice as the client downloads and prints it.
The pricing, line by line
- Crown reduction, two oaks
- 2 × $1,350.00
- Removal, storm damaged gum
- 1 × $2,200.00
- Stump grinding
- 1 × $380.00
- Green waste removal
- 3 × $190.00
- Traffic management
- 1 × $420.00
- Tax
- $940.50
- Total
- $7,210.50
Section by section
- Header
- The arborist's name, Christchurch address, phone, website and accounts email, with invoice number KTC-0566.
- Bill to and dates
- The retirement village's facilities manager, company and address, issued 13 October and due 20 November.
- Title
- Tax invoice, the GST number and that it is taxable supply information.
- Lines
- Crown reductions, a removal, stump grinding, green waste and traffic management, each at 15% GST.
- Totals
- Amount before GST, GST and total in New Zealand dollars.
- Notes and bank details
- The work dates, the GST rate, the payment terms, then the account and reference.
Taxable supply information, not a tax invoice
From 1 April 2023 New Zealand replaced the requirement for tax invoices with taxable supply information, the set of details a GST registered seller must give or keep for each sale. What it must show depends on value. Up to $200, the seller's name, the date, a description and the amount. Over $200, also the seller's GST number and the GST, either as the amount before GST, the GST and the total, or the total with a statement that GST is included. Over $1,000, the buyer's name and at least one identifier as well, when the buyer is GST registered. Many businesses still call the document a tax invoice, as this one does, and its title says it is taxable supply information too.
How the GST is worked out
Two crown reductions at $1,350 are $2,700, the gum removal is $2,200, stump grinding $380, three loads of green waste at $190 are $570 and traffic management $420: $6,270 before GST. GST at 15% is $940.50, so the total is $7,210.50. All lines are at the standard rate; New Zealand has few zero rated supplies for a business like this one. Because the total is over $1,000 and the village is GST registered, its name, address and email are printed in the Bill to block from the client record.
How this differs from the Australian version
GST in New Zealand is 15%, not 10%, and the identifying number is a GST number, often the IRD number, rather than an ABN. The rules are tiered by value rather than set at a single $1,000 line for the buyer's details, and the buyer's details are needed only when the buyer is GST registered. Payment on the 20th of the following month is the usual account term in New Zealand, where Australian invoices more often give a number of days. Registration is compulsory once turnover reaches $60,000 in twelve months.
What makes this invoice work
It meets the over $1,000 tier
For a sale over $1,000, Inland Revenue asks for the seller's name and GST number, the date, a description, the amounts, and the buyer's name with an identifier if the buyer is GST registered. This invoice carries all of them, with the village's address and email as identifiers.
GST is 15% on every line
Each of the five lines shows a 15% rate, and the totals show the amount before GST, the GST and the total. Showing all three is one of the two ways Inland Revenue accepts for stating the payment.
Terms match how NZ businesses pay
The invoice is due on the 20th of the following month, the common New Zealand account terms, and the notes say it was agreed. Bank details use the 16 digit NZ account format with the invoice number as the reference.
Questions people ask
Does New Zealand still use tax invoices?
Since 1 April 2023 the law requires taxable supply information rather than a tax invoice. In practice many businesses still issue a document called a tax invoice that contains the required information. This example does that, and its title says it is taxable supply information.
What must an NZ invoice show for a sale over $1,000?
The seller's name or trade name and GST number, the date, a description, the GST exclusive amount, GST and total (or the total with a GST included statement), and, if the buyer is GST registered, the buyer's name and an identifier such as an address, phone, email or NZBN.
What is the GST rate in New Zealand?
The standard rate is 15%. This invoice charges 15% on every line: $940.50 on $6,270 of work, for a total of $7,210.50. Some supplies, such as exports, are zero rated, but ordinary services between New Zealand businesses are at the standard rate.
When do I have to register for GST in New Zealand?
When your turnover was $60,000 or more in the last twelve months, or is expected to be in the next twelve. Below that, registration is voluntary. A business that is not registered does not charge GST and does not give taxable supply information.
What are 20th of the month terms?
Payment is due on the 20th of the month after the invoice date. This invoice, dated 13 October, is due on 20 November. They are common account terms in New Zealand, and the invoice says they were agreed in the client's account terms.
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