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New rules to make GST record keeping easier

Are you registered for GST? Keeping records is about to get easier.

Changes aimed at modernising GST rules for invoicing and record keeping are being introduced.

Most changes come into effect on 1 April 2023.

The new rules are designed to support e-invoicing and electronic record keeping, particularly New Zealand's adoption of the Pan European Public Procurement Online (PEPPOL) framework.

There is no change to the GST calculation, only the rules relating to invoicing and record keeping.

The changes are designed for greater flexibility, so if your invoicing practices meet the current requirements, you'll comply with the new rules.

Overview of changes

Starting on 1 April 2023, there will be new terminology to support flexible record keeping practices. For example, the term 'taxable supply information' will replace the current term 'tax invoice'.

Also starting on 1 April:

  • new information requirements will need to be met based on the value and type of the supply
  • a single document that holds all the taxable supply information will no longer need to be kept, such as a tax invoice, credit note or debit note
  • transaction records, accounting systems, supplier agreements and contracts can be used alone, or in combination, to meet the information requirements
  •  taxable supply information can be provided using an automated direct exchange between a buyer's and seller's software, for example, PEPPOL e-invoicing.

You will not need to change the wording of the GST documents your business uses to reflect the new terms. For example, you may continue to provide taxable supply information in a single document marked as a 'tax invoice' if you wish. However, this wording will no longer be required.

More information

IRD have set up a special page with more information and details around the new terminology, rules, and documentation requirements.

Rules for tax invoices are changing on 1 April 2023 - external link

Earlier changes

Other GST changes came into effect on 30 March 2022. The News update published on 12 September 2022 has more details.

Changes to the rules for GST tax invoices - external link

Source: www.ird.govt.nz