New simplified GST record rules
1 April 2023 saw simplified GST record rules take effect, introducing a number of fundamental changes to GST invoicing and record keeping. These changes are a welcome modernization that support electronic record keeping and e-invoicing, as well as reducing the cost of doing business.
The GST calculation hasn’t changed, only the rules relating to invoicing and record keeping.
1 April 2023 saw new laws take effect, introducing a number of fundamental changes to GST invoicing and record keeping. These changes are a welcome modernization that support electronic record keeping and e-invoicing, as well as reducing the cost of doing business.
The GST calculation hasn’t changed, only the rules relating to invoicing and record keeping.
So what are the changes?
- Tax invoices becomes Taxable Supply Information (TSI)
- Debit notes and Credit notes becomes Supply Correction Information
- Buyer-created tax invoices becomes Buyer-Created Taxable Supply Information
- There is no longer a requirement to hold a single physical document with all the taxable supply information, such as a tax invoice or credit/ debit notes
- Various sources of information, such as your accounting systems, supplier agreements or bank statements can be used on their own or in combination to support GST claims
- This has increased from $50
- For supplies under $200 you can claim GST without holding TSI
- Previously the purchaser could hold a tax invoice to claim GST. Sellers are now formally required to keep records of their sales also
- Agreements written between two parties as evidence of self-billing are now acceptable on their own
- Tax invoices show the issued date, but with TSI you can substitute this with the date of supply. This would be in bank statements or a receipts for cash payments
- However for supplies over $1,000, where the supplier knows the recipient’s address it must be included in the TSI
- If you already operate compliantly with the old rules you can continue to do so, or use a combination
Summary of changes
| To be included in TSI | From 1 April 2023 | Previous rules | |||
| $200 or less | $200 and $1,000 | $1,000 or more | $1,000 or less | $1,000 or more | |
| The phrase “Tax invoice” | ✔ | ✔ | |||
| Seller details | |||||
| Name (or name and trading name) | ✔ | ✔ | ✔ | ✔ | ✔ |
| GST Number | ✔ | ✔ | ✔ | ✔ | |
| Buyers details | |||||
| Name | ✔ | ||||
| Identifier details (1 or more of)
Address, phone number, email, NZ Business number, website URL |
✔ | ||||
| Physical address of recipient, where available | ✔ | ||||
| Date | |||||
| Date of invoice. Where no invoice issued, time of supply | ✔ | ✔ | ✔ | ||
| Date invoice is issued | ✔ | ✔ | |||
| Information on the goods or service | |||||
| Description of the goods or services (i.e. a description line in your accounting system) | ✔ | ✔ | ✔ | ||
| Payment information | |||||
| The amount of consideration for the supply | ✔ | ✔ | ✔ | ✔ | ✔ |
| Statement that consideration includes GST or the amount of the GST charged | ✔ | ✔ | ✔ | ✔ | |
For more details visit Inland Revenue’s explanatory page or contact us to discuss how these new rules may apply to you.
