New rules on GST Invoicing

New rules modernising GST invoicing and record-keeping requirements apply from 1 April 2023.

The key change removes the requirement to issue and hold a “tax invoice” document (which meets certain prescribed requirements on details required). Instead GST requirements are met provided specific GST information is held through various business records, for example commercial invoices or agreements.

“Tax invoices” are replaced by “taxable supply information” (TSI). This is a set list of information that must be provided to any GST-registered customers within 28 days of the date of supply. Information over and above current tax invoice requirements includes:

the “date of the supply” — when the time of supply is triggered, rather than the current tax invoice requirement of the date on which the tax invoice is issued
for supplies over $1,000, the TSI must include the recipient’s physical address (if that information is available).

For supplies over $200 it is mandatory to issue TSI to GST-registered customers within 28 days of the date of supply, and for supplies made to non-GST registered persons you have 28 days from when the customer requests the information.

Other favourable changes include the increase of the low-value threshold from $50 to $200 where limited taxable supply information is required and the removal of Inland Revenue approval for issuing buyer-created tax invoices (replaced by written agreements between parties to confirm self-billing).

The new invoicing rules are designed with the intent that businesses issuing valid tax invoices should not have to make any changes to comply with the new rules. However all businesses need to be aware of the changes to ensure their business processes can manage the new GST requirements (i.e. accepting invoices which don’t have the words “tax invoice” on them).