Invoicing and Tax regulation in New Zealand

Navigating New Zealand’s evolving e-invoicing and tax regulations can be challenging. This guide provides an overview of the latest requirements to help you stay compliant and avoid potential penalties.

In the guide, we will cover:

Regulations Timeline

New Zealand E-invoicing Requirements (2025 Update)

Tax Regulations

Digital Reporting

Penalties

Achieving Global Invoicing and Tax Compliance with Space Invoices

 

 

Regulations Timeline

A quick overview of all current and upcoming regulations that Australia mandates regarding e-invoicing and digital reporting. For a complete list of countries with mandatory B2B e-invoicing regulations, click here. For a comprehensive general guide to e-invoicing regulations by country, click here.

 

Regulations in Effect:

All central government agencies are required to have the capability to receive e-invoices.

 

Upcoming Changes to New Zealand E-invoicing:

From 1 January 2026, mandatory e-invoicing will apply to all agencies that issue or receive more than 2,000 domestic invoices per year.

 

 

New Zealand E-invoicing Requirements (2025 Update)

In New Zealand, current regulations mandate all central government agencies to have the capability to receive e-invoices. Though e-invoicing isn’t mandatory for B2B and B2C yet, it is highly encouraged. To support this transition, New Zealand has implemented:

The PEPPOL network.

Managed by Ministry of Business, Innovation and Employment (MBIE).

Peppol Access Points to connect to the network.

 

Governmental Body Responsible for E-invoicing

Ministry of Business, Innovation and Employment (MBIE) is responsible for e-invoicing regulations.

Click here to visit their official website.

 

E-invoicing Formats

In New Zealand, e-invoices are generally exchanged using the XML format, usually in either Universal Business Language (UBL) or PEPPOL BIS Billing 3.0. There is no central hub or platform. Instead, businesses use e-invoicing networks like PEPPOL and reliable access point providers such as Space Invoices to ensure compliance.

 

E-invoice Requirements

Invoices must be issued within 28 calendar days from the date the goods are dispatched or the services provided. They can be issued in either electronic or paper form and must include the following components:

Supplier Information: Name and address, New Zealand Business Number (NZBN) and contact information;

Customer Information: Name and address, NZBN if applicable and contact information;

Date of Issue;

Unique Invoice Number;

Due date for payment;

Banking and Payment Information;

Description of Goods or Services;

Quantities and Unit Prices: The quantity and price per unit;

Total amount and Tax Details: Breakdown of taxes applicable, typically GST. For GST-registered businesses, this includes issuing tax invoices that detail GST amounts for taxable supplies, in line with recent changes to taxable supply information requirements;

Additional Information: Reference numbers, discounts or adjustments;

Legal and Regulatory Information: Statements required by law and declaration of the authenticity of the contents.

 

Simplified Invoices

In New Zealand, you can issue simplified e-invoices for transactions where the total invoice amount does not exceed NZD 1,000.

The essential elements are:

Supplier Information: name and GST registration number of the supplier;

Customer Information: name and address of the recipient;

Date of Issue;

Description of Goods or Services;

The words "tax invoice" in a prominent place;

The total amount payable including GST: and a statement that the amount includes GST.

 

E-invoice Archiving

E-invoices must be archived for a minimum of 7 years.

 

 

Tax Regulations

Goods and Services Tax (GST)

The Standard GST rate in New Zealand is 15%. There is a reduced rate of 9% applicable to certain domestic goods and services, such as hotel accommodations. Additionally, specific items and services, such as penalty interest or the rental of residential dwellings, are exempt from GST.

 

Corporate Tax

The Standard Corporate Tax Rate in New Zealand is 30%. There is a reduced rate of 25%, which applies to companies with an annual turnover of AUD 50 million or less.

 

GST on Digital Services in Australia

Digital services in Australia are generally subject to a 10% Goods and Services Tax (GST). However, the application of GST depends on the type of transaction (B2B or B2C):

B2B Transactions: For business-to-business transactions, the reverse-charge mechanism usually applies.

B2C Transactions: For sales to Australian consumers (B2C), non-resident businesses must register for GST if their annual sales exceed AUD 75,000. In such cases, the seller is responsible for charging and remitting GST on these sales.

Digital services that are subject to GST include e-books, software downloads, music, movies, games, and other electronically supplied services.

 

 

Digital Reporting

GST Registration and Thresholds

Domestically Established Businesses: Have a registration threshold of NZD 60,000.

Non-residents and non-New Zealand based suppliers: Must register for GST if their annual New Zealand turnover reaches or exceeds NZD 60,000.

 

GST Returns and Payments

In Australia, GST returns must be submitted digitally. The reporting frequencies are:

Monthly: Reports must be submitted by the 28th day of the month following the reporting period. This is mandatory for businesses with a turnover of NZD 24 million or more.

Two-Monthly: Reports must be submitted by the 28th day of the month following the reporting period. This is mandatory for businesses with a turnover of NZD 500,000 or more.

Quarterly: Reports must be submitted by the 28th day of the month following the quarter's end. This is mandatory for businesses with a turnover below NZD 500,000.

 

 

Penalties

Late Payments: A penalty of NZD 250 applies for late payments, with additional charges for unpaid GST. An extra 1% of the overdue amount is added if payment is delayed beyond the first day, escalating to 4% after seven days, and another 1% for each subsequent month.

Late Filing: A penalty of NZD 50 is imposed for unpaid taxes below NZD 50,000. For larger tax amounts, the penalty starts at NZD 250 and increases based on the outstanding tax amount.

Shortfall Penalties: These vary depending on the nature of the error:

Data Breach Reporting: Failing to report data breaches that pose a risk of harm to individuals can result in fines of up to NZD 10,000.

 

 

Achieving Global Invoicing and Tax Compliance with Space Invoices

One way to comply with (e-)invoicing, tax, and reporting regulations in New Zealand is to use a provider like Space Invoices.

You will be able to:

Use one API for current and future global tax and invoicing compliance, including New Zealand

Save time and money with integration that takes less than a week

Support and upsell your clients worldwide, including New Zealand

Ensure all documents are archived and successfully reported to responsible institutions

Become a one-stop shop for current and future clients

Streamline processes and eliminate manual errors, saving time and money

Do you have questions about achieving compliance in New Zealand?

We are ready to help.

 

The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This guide was last updated on January 20th, 2025.

Looking to automate real-time reporting and tax compliance for New Zealand? Let's talk