Regulatory updates - New Zealand

The Inland Revenue Authority (IRD) posted additional clarifications on 12 September 2022 to help taxpayers to comply with the new GST Rules.

The new GST changes introduce new terminology as well as a more flexible ruleset. From 1 April 2023, taxpayers no longer need to keep a single document, such as a tax invoice or credit note, with all the required information. Instead, a combination of transaction records, accounting systems and contractual documents can be used to supply the information needed for the GST return. Another change is that taxpayers no longer need to include the words ‘tax invoice’ in a prominent place to make it valid.

New terms:

Taxable supply information is the minimum amount of information buyers and sellers need to store as evidence. The information that taxpayers need to supply or keep is determined by the type of supply and the value of the transaction.

A benefit of the new ruleset is that sellers can provide taxable supply information to a customer using an automated direct exchange between the buyer's and seller's software, for example through Peppol.

Supply correction information is required to be submitted in circumstances when the taxable supply information included incorrect information, such as when an invoice included an incorrect amount of GST.

Taxpayers no longer need to seek approval from the IRD to issue buyer-created tax invoices. Under the new ruleset, any GST-registered buyer purchasing from a GST-registered seller can enter into an agreement to use buyer-created taxable supply information.

Pagero has obtained accreditation from the New Zealand Peppol Authority and has been catering to B2B and B2G trading requirements through Peppol.

Since becoming members of OpenPeppol in 2019, both of these countries have been taking part in a global framework and have an advantage over competitors still exchanging paper invoices.

Learn more about Australia and New Zealand's journey towards digitalization, and what this step means for businesses operating in the Trans-Tasman region here.