How to Invoice a Client in New Zealand

A complete guide to GST-compliant invoicing

A New Zealand tax invoice must carry the words 'Tax Invoice', your name and IRD number, the date, a description of the goods or services, the quantity, the total charged and the GST component. GST is 15% on standard-rated supplies and 0% on exports. Registration with Inland Revenue is compulsory once taxable supplies exceed NZ$60,000 in any 12-month period, and invoices over NZ$1,000 must also carry the recipient's name and address.

Invoicing in New Zealand requires compliance with local GST regulations and specific formatting standards. Whether you are a freelancer, small business owner, or agency, this guide covers everything you need to create professional, legally compliant invoices in New Zealand using NZD (NZ$).

Legal Requirements for New Zealand Invoices

✓Register for GST with Inland Revenue (IR) if your taxable supplies exceed or are expected to exceed NZ$60,000 in any 12-month period. Display your IRD number on all tax invoices.
✓Issue a tax invoice for every taxable supply over NZ$50 when requested by the recipient. Tax invoices must include your name, IRD number, the date, a description of goods or services, the quantity or volume, the total amount charged, and the GST component.
✓Issue a buyer-created tax invoice when agreed in writing with the buyer. Both parties must keep records of the arrangement, and the buyer assumes responsibility for the accuracy of the invoice.
✓Apply the correct GST rate: 15% standard rate for most goods and services, 0% for exported goods and services, certain financial services, and supplies to non-residents who are outside New Zealand at the time of supply.
✓Include all mandatory fields on tax invoices as required by the Goods and Services Tax Act 1985: supplier name and IRD number, invoice date, description, quantity, taxable supply amount, and the tax charged or a statement that the price includes GST.
✓Maintain records of all taxable supplies and GST collected for at least seven years from the end of the tax year in which the transaction occurred, as required by the Tax Administration Act 1994.
✓Determine the correct time of supply (tax point) for each transaction, which is generally the earlier of the invoice date or the date payment is received. This determines in which GST return period the supply must be reported.

Step-by-Step: Create an Invoice for New Zealand

Follow these steps to create a compliant New Zealand invoice with proper GST handling.

Estimated time: About 10 minutes

1
Register for GST with Inland Revenue
Apply for GST registration through Inland Revenue's myIR online portal or by filing form GST101A. You will use your existing IRD number (the 8- or 9-digit number issued by Inland Revenue) for GST purposes. Registration is compulsory if your taxable turnover exceeds NZ$60,000 in 12 months, and voluntary below that threshold.
2
Set Up Your Business Details
Enter your legal business name or trading name, IRD number, registered business address, and contact information. If you are a sole trader, your personal IRD number is used. For companies, partnerships, and trusts, a separate IRD number is issued to the entity.
3
Add Client Information
Enter your client's name, address, and IRD number if they are GST-registered. For supplies over NZ$1,000, the recipient's name and address are required on the tax invoice. Having the client's IRD number facilitates their input tax deduction claims.
4
Create Line Items with GST Treatment
Add each product or service with a description, quantity, unit price, and GST treatment. Classify each item as standard-rated (15%), zero-rated (0% for exports, certain financial services, and going concern sales), or exempt (residential accommodation, financial services, donated goods sold by non-profits).
5
Calculate and Display GST
Calculate GST at 15% on all standard-rated supplies. Display either the GST-exclusive amount plus the GST amount and the total, or the GST-inclusive price with a statement that the amount includes GST. Both methods are acceptable under New Zealand law.
6
Set Payment Terms in NZD
Specify payment terms and the due date. The 20th of the month following invoice is common in New Zealand. Include your New Zealand bank account number for direct credit, which is the most common payment method. New Zealand bank account numbers follow a format of BB-bbbb-AAAAAAA-SSS (bank, branch, account, suffix).
7
Generate the Tax Invoice PDF
Create a PDF invoice that includes all mandatory fields under the GST Act: the words 'Tax Invoice', your name and IRD number, the date, a description of the supply, the quantity, the consideration (amount charged), and the tax charged. For invoices over NZ$1,000, the recipient's name and address must also be included.
8
File Your GST Return
Report all taxable supplies and GST collected in your GST return, which is filed one-monthly, two-monthly, or six-monthly depending on your turnover and filing frequency election. File through Inland Revenue's myIR portal by the 28th of the month following the end of your return period (except for the March and November periods, which have later due dates).

Tips for Invoicing in New Zealand

Choose the right GST return filing frequency for your business. Businesses with turnover over NZ$24 million must file monthly; those between NZ$500,000 and NZ$24 million can file one- or two-monthly; and those under NZ$500,000 can elect to file six-monthly. More frequent filing means faster refunds if you regularly claim more GST than you collect.
Use the payments basis of accounting if your taxable supplies are under NZ$2 million per year. Under the payments basis, you account for GST when payment is received rather than when the invoice is issued, which can improve cash flow for businesses that offer credit terms.
Remember that the NZ$50 threshold applies to issuing tax invoices on request. Below NZ$50, you do not need to issue a tax invoice unless the buyer specifically asks for one. However, maintaining consistent invoicing practices regardless of amount is good business practice.
When supplying services to non-resident businesses outside New Zealand, these may be zero-rated under section 11A(1)(k) of the GST Act, provided the services are not directly connected with land, goods, or events in New Zealand. This allows you to charge 0% GST while still claiming input tax deductions.
Inland Revenue can impose penalties for late filing and late payment. A 1% initial late payment penalty is charged the day after the due date, followed by an additional 4% penalty if the amount remains unpaid after seven days. Use myIR to set up automatic payment reminders and direct debit arrangements.

New Zealand Invoicing FAQ

When must I register for GST in New Zealand?

You must register for GST if your taxable supplies exceeded NZ$60,000 in the past 12 months or you expect them to exceed NZ$60,000 in the next 12 months. You can voluntarily register below this threshold if you want to claim input tax deductions on business expenses. Registration is done through Inland Revenue's myIR portal, and once registered, you must charge 15% GST on all taxable supplies and file regular GST returns.

What must a New Zealand tax invoice include?

A tax invoice must include: the words 'Tax Invoice', your name (or trading name), your IRD number, the date of issue, a description of the goods or services supplied, the quantity or volume, the total amount charged, and the tax charged (or a statement that the price includes GST). For invoices over NZ$1,000, the recipient's name and address are also required. For invoices under NZ$50, a simplified invoice may be used.

What is the difference between invoice basis and payments basis for GST?

Under the invoice basis (default), you account for GST based on the date of the invoice or the date of supply, regardless of when payment is received. Under the payments basis, you account for GST only when payment is actually received or made. The payments basis is available to businesses with taxable supplies under NZ$2 million per year and can significantly improve cash flow if you have long payment cycles.

How do withholding taxes affect invoicing in New Zealand?

If you are a contractor providing schedular payments (such as contract labour, sales commissions, or certain professional services), the payer may be required to deduct withholding tax (WT) from your payment. You should provide your IRD number and elected withholding tax rate to the payer. If you do not provide an IRD number, the non-declaration rate of 45% applies. Withholding tax is separate from GST and should be handled independently on the invoice.

Can I claim GST back on all business purchases?

You can claim input tax deductions for GST paid on goods and services purchased for use in making taxable supplies, provided you hold a valid tax invoice. However, you cannot claim input tax on exempt supplies, entertainment expenses (limited to 50% for certain types), private use of business assets (must apportion), or purchases from non-GST-registered suppliers where no GST was charged. Claims must be made in the return period in which the goods or services were received.