New laws introduced by the Government, taking effect on 1 April 2023, have modernised the GST rules for invoicing and are set to make record keeping easier.
You will no longer need to keep a single physical document holding the supply information, such as a tax invoice, credit note, or debit note. Your transaction records, accounting systems and contractual documents may, in combination, contain all the information you need to support the figures in your GST returns.
New terms coming into effect:
- Tax invoice will become Taxable supply information
- Debit/credit note will become Supply correction information
- Buyer-created tax invoice will become Buyer-created taxable supply information
Currently, a valid tax invoice must include the words ‘tax invoice’ in a prominent place. However, you will not need to change the wording of the GST documents your business uses to reflect the new terms.
The definition of taxable supplies has not changed. ‘Taxable supply information’ refers to the minimum set of information buyers and sellers need to keep as evidence of a transaction. This includes tax invoices, but it can also include information held in other forms, such as supplier agreements, contracts, and bank statements.
Inland Revenue will publish more guidance as information becomes available.
For more details visit https://ird.govt.nz/gst/tax-invoices-for-gst/rules-for-tax-invoices-are-changing-on-1-april-2023 or contact our offices to discuss how these new rules may apply to your individual circumstances.