Modernising record keeping for GST
New GST invoicing and record keeping rules are coming
Changes aimed at modernising GST rules for invoicing and record keeping are being introduced to allow for greater flexibility. How you calculate GST is not changing, only the rules relating to invoicing and record keeping.
These new rules may mean you’ll need to update some of your business processes and systems so please read on to learn how these could affect you.
Changes coming from 1 April 2023
From 1 April 2023, there are changes to terminology, rules, and documentation requirements, these include:
- The requirement to use tax invoices is being replaced by a more general requirement to provide and keep certain records known as ‘taxable supply information’.
- You'll no longer need to keep a single physical document holding the taxable 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.
- However, as taxable supply information also includes tax invoices, you can keep using tax invoices if you wish.
- The information you need to provide or keep depends on the value and the type of supply.
- Taxable supply information can be provided using an automated direct exchange between a buyer's and seller’s software, for example PEPPOL e-invoicing.
What you need to do before 1 April 2023
- Familiarise yourself with the new rules. The changes are designed for greater flexibility, so invoicing practices, or systems compliant with the current rules will comply with the new rules. However, even if you decide not to adopt the changes, if your suppliers do then you could be affected. For example, if you purchase goods after 1 April 2023, the invoice you receive from the supplier may no longer include the term ‘tax invoice’. This is now acceptable for tax reporting purposes.
- Identify how these new rules may impact your business processes and systems. If you use third party software, please talk to your provider about how they are incorporating these changes into their software.
- Determine what changes you may need to make to be ready for the changes coming in April.
Find out more
For more information and details around the new terminology, rules, and documentation requirements, please visit ird.govt.nz/modernising-gst