GST Invoicing Requirements in New Zealand: Complete Guide for 2026

If you're GST-registered in New Zealand, you need to issue proper tax invoices. Getting it wrong can mean fines from IRD, delayed payments, or customers who can't claim back their GST.

This guide covers everything you need to know about GST invoicing requirements in NZ - what must be on your invoices, when you need to charge GST, and how to stay compliant.

Are You Required to Register for GST?

You must register for GST if:

• Your business earns over $60,000 in any 12-month period, OR
• You expect to earn over $60,000 in the next 12 months

• You earn less than $60,000 but want to claim GST back on business expenses

What is a "Tax Invoice"?

A tax invoice is a special type of invoice that allows your customer to claim back the GST they paid you.

Regular invoices vs Tax invoices:

• Regular invoice: Can be used for non-GST transactions or sales under $50
• Tax invoice: Must include specific GST information (see below)

• Any sale over $50 (including GST)
• Any sale where the customer might claim GST back

What Must Be on a Tax Invoice (Legal Requirements)

According to IRD, every tax invoice in New Zealand must include:

1. The words "Tax Invoice"

Example:

TAX INVOICE #1234

Why: Tells your customer (and IRD) that this is a valid GST invoice.

2. Your GST Number

Example:

GST Number: 123-456-789

Where to find it: On your IRD correspondence, or in myIR

Common mistake: Using your IRD number instead of your GST number. They're different!

3. Your Name and Address

Must include:

• Your legal business name (or trading name)
• Your business address (PO Box is fine)

Thompson Plumbing Ltd
123 Main Street, Auckland 1010
GST: 123-456-789

4. Customer Name and Address

For invoices over $1,000:

• Customer's full name
• Customer's address

• Customer name only is fine

5. Invoice Date

The date you issued the invoice (not the date of the work).

6. Description of Goods or Services

Be specific! "Plumbing work" isn't enough.

Bad example:

Services rendered - $1,500

Good example:

Hot water cylinder replacement including:
Remove old 135L cylinder
Install new Rheem 180L cylinder
Pressure relief valve installation
System testing and certification

7. Total Amount (Including GST)

The amount your customer actually pays.

8. GST Amount or Rate

You must show either:

• The GST amount: "GST: $225.00"
• The GST rate: "Includes GST at 15%"

Subtotal:      $1,500.00
GST (15%):     $  225.00
Total:         $1,725.00

Example: Compliant Tax Invoice

TAX INVOICE #2401
Thompson Plumbing Ltd
123 Main Street
Auckland 1010
GST Number: 123-456-789
Phone: 021 234 5678
INVOICE TO:
Sarah Johnson
45 Queen Street
Wellington 6011
Date: 15 January 2026
Due: 30 January 2026
DESCRIPTION                          QTY    PRICE     TOTAL
Hot water cylinder replacement        1    $1,200    $1,200
Rheem 180L Stellar 330
Valves and fittings                  1    $  180    $  180
Labour (4 hours @ $80/hr)            4    $   80    $  320
                                                    --------
                                          Subtotal  $1,700
                                          GST (15%) $  255
                                          TOTAL     $1,955
Payment terms: Net 15 days
Bank: 12-3456-7890123-00
Thank you for your business!

Why this works:

• ✅ Says "TAX INVOICE"
• ✅ Includes GST number
• ✅ Business name and address
• ✅ Customer name and address (over $1,000)
• ✅ Invoice date
• ✅ Detailed description of work
• ✅ Shows GST amount and total clearly
• ✅ Payment terms included

Common GST Invoicing Mistakes (And Penalties)

❌ Mistake 1: Not Including GST Number

Problem: Invoice says "Tax Invoice" but no GST number shown.

Penalty: Customer can't claim GST. They'll ask for a corrected invoice. Makes you look unprofessional.

Fix: Add your GST number to every invoice template.

❌ Mistake 2: Charging GST When You're Not Registered

Problem: You add 15% GST to invoices but you're not actually registered for GST.

Penalty: You keep the "GST" you charged (it's just extra income), but customer can't claim it back. If they find out, they'll be angry. If IRD finds out, you'll face penalties.

Fix: Only charge GST if you're registered. Check your myIR to confirm.

❌ Mistake 3: Not Showing GST Separately

Problem: Invoice just says "Total: $1,725" with no GST breakdown.

Penalty: Customer can't claim GST back. Not IRD-compliant.

Fix: Always show:

Subtotal: $1,500
GST:      $  225
Total:    $1,725

❌ Mistake 4: Wrong GST Rate

Problem: Using 12.5% or 10% GST (old rate or Australian rate).

Penalty: Incorrect tax calculation. IRD penalties if it's a pattern.

Fix: NZ GST is 15% (since 2010). Update your templates.

❌ Mistake 5: Forgetting "Tax Invoice" Label

Problem: Invoice has all the info but doesn't say "Tax Invoice" anywhere.

Penalty: Technically not a valid tax invoice. Customer may not be able to claim GST.

Fix: Add "TAX INVOICE" to the top of every invoice.

GST on Deposits and Progress Payments

Rule: You must charge GST when you receive payment, not when work is completed.

Example scenario:

• Customer pays 50% deposit ($1,000 + GST)
• You issue tax invoice for deposit
• Work completed, customer pays balance ($1,000 + GST)
• You issue second tax invoice for balance

Zero-Rated GST vs GST-Exempt vs GST-Free

Most tradies charge 15% GST on everything. But some supplies are different:

Zero-Rated (0% GST)

Rare for tradies. Mainly exports and some financial services.

GST-Exempt

You can't charge GST, and you can't claim GST back on related costs.

Examples:

• Residential rent
• Donated goods to charities
• Some financial services

GST-Free

Most common for tradies working on new residential builds.

Key point: If you're working on a new home build, you may not charge GST to the customer, but you can still claim GST back on your costs. Talk to an accountant.

Filing GST Returns: What You Need to Know

How often:

• If turnover under $500k/year: Every 2 months
• If turnover over $500k/year: Every month
• You can also choose 6-monthly filing

• Total sales (including GST)
• GST you collected from customers
• GST you paid on business expenses
• Net amount (you pay IRD or they refund you)

• Due 28 days after the end of your GST period
• File through myIR

Digital Invoicing: Does It Meet IRD Requirements?

Yes! Digital invoices (PDF, email, or invoicing software) are 100% compliant with IRD rules.

Requirements:

• Must include all the mandatory fields (see above)
• Must be readable and printable
• Customer must be able to access it

When You Don't Need a Tax Invoice

Situations where a simplified invoice is okay:

Sales under $50 (including GST)

You can issue a simplified receipt with:

• Your name
• GST number
• Date
• Description
• Total amount (including GST)

Sales to non-GST registered customers (under $1,000)

Customer name/address not required if under $1,000.

Keeping Records: How Long to Store Invoices

IRD requirement: Keep all tax invoices for 7 years.

What to keep:

• Invoices you issued (sales)
• Invoices you received (expenses)
• GST returns
• Bank statements

Paymate Pro Tip: Paymate stores all your invoices in the cloud automatically. Access them anytime, never lose a record.

Summary: Tax Invoice Checklist

Before sending any invoice over $50, check it includes:

• ✅ "Tax Invoice" label at the top
• ✅ Your GST number (123-456-789 format)
• ✅ Your business name and address
• ✅ Customer name (and address if over $1,000)
• ✅ Invoice date
• ✅ Description of goods or services
• ✅ Subtotal, GST amount, and total
• ✅ Payment terms and due date

Need Help with GST-Compliant Invoicing?

Option 1: Use Paymate's free invoicing software - automatically includes all IRD-required fields and calculates GST for you.

Option 2: Talk to an accountant if you're unsure about your GST obligations.

Option 3: Contact IRD directly: 0800 377 774

Start Creating GST-Compliant Invoices Free →

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