Updated GST invoicing & record keeping requirements
The rules covering tax invoices are being updated for the first time since the introduction of GST in 1986 with the aim being to make GST record keeping easier. GST invoice rules are being updated to reflect some of the changes that have occurred in the way business is done and to make the format of a tax invoice, now called taxable supply information, less prescriptive.
These changes are set to come into effect on 1 April 2023.
Taxable Supply Information
The requirement to use tax invoices is being replaced by a more general requirement to provide and keep certain records known as ‘taxable supply information’. Taxable supply information is the information collected from a variety of sources that organisations are required to hold to claim input tax deductions, or issue to buyers so they can claim a deduction.
You’ll no longer need to keep a single physical document holding the taxable supply information, such as a tax invoice, credit note, or debit note.
Your transaction records, accounting systems and contractual documents may, in combination, contain all the information you need to support the figures in your GST returns.
However, as taxable supply information also includes tax invoices, you can keep using tax invoices if you wish.
New record requirements
Depending on the value of the purchase or sale, there is varying amount of information required. Here is a basic summary.
Purchases/sales less than $200
- Name of supplier
- Date of invoice, or if no invoice issued, date of supply
- Description of goods or services supplied
- Amount paid
Purchases/sales $200-1000
All of the above requirements plus:
- GST registration number of supplier
- If GST included – amount “including GST”
- If GST excluded – amount, GST, total
Purchases/sales over $1000
All of the above requirements plus:
- Recipient name and details – one or more of the following – billing address, phone number, email, trading name, NZBN, website
Navigating the new requirements
Although businesses will have more flexibility with the way sales and purchases are recorded, changes to your accounting systems may be required. Please get in touch with us if you would like to review your systems and work through the updated requirements.