How to create an IRD-compliant invoice in NZ (free template)

A non-compliant invoice creates problems for everyone involved. Your client can't claim the GST credit on it, so they'll ask you to reissue it, which means chasing them again. If IRD audits your records and finds invoices that don't meet the requirements, they can disallow your claims too.

NZ tax law is specific about what goes on a tax invoice. Miss one field and the whole document is technically invalid.

When do you need a tax invoice?

A tax invoice is required whenever a GST-registered person supplies goods or services to another GST-registered person for $50 or more (GST inclusive). For supplies under $50, a simplified invoice (essentially a receipt) is fine.

For supplies over $1,000 GST inclusive, there are additional requirements covered below.

If you're not GST registered (turnover under $60,000/year and you haven't voluntarily registered), you don't issue tax invoices. You issue regular invoices without GST.

What must appear on every NZ tax invoice

IRD requires the following on all tax invoices regardless of value:

• The words "Tax Invoice" clearly stated
• Your name (or trading name)
• Your GST registration number (e.g. 123-456-789)
• The date the invoice is issued
• A description of the goods or services supplied
• The GST-exclusive price, the GST amount, and the GST-inclusive total, OR the total amount payable with a statement that GST is included

Additional requirements for invoices over $1,000

For supplies over $1,000 (GST inclusive), you must also include:

• The name and address of the buyer (your client's registered name)
• A unique invoice number for your records
• The quantity or volume of goods/services supplied

GST-inclusive vs GST-exclusive pricing: what to show

You have two valid options:

Option 1 (most common): Show the GST-exclusive subtotal, the GST amount as a separate line, and the GST-inclusive total.

Consulting services: $1,000.00 GST 15%: $150.00 Total: $1,150.00

Option 2: Show only the GST-inclusive total with a statement like "Price includes GST of $150.00".

Option 1 is clearer. Use that. It's what clients expect, it reduces queries, and it's easier to audit.

What date goes on the invoice?

The invoice date is the date you issue the invoice, not the date the work was completed and not the payment due date.

You should also show: - Invoice date (issue date): when you sent it - Due date: when payment is expected (14 or 30 days from issue is standard)

For GST filing on invoice basis, the invoice date determines which GST period the supply falls into. Getting this wrong puts a transaction in the wrong period, which can trigger a shortfall notice.

Your bank account and payment reference

IRD doesn't require payment details on an invoice, but you should include them anyway. An invoice without banking instructions is an invitation to forget.

Include: - Bank account number in XX-XXXX-XXXXXXX-XX format - Payment reference: use your invoice number so you can match incoming payments - Due date stated clearly

Free NZ tax invoice template

Here's a text-based template you can adapt:

--- TAX INVOICE

From: [Your Name / Company Name] GST Number: [XXX-XXX-XXX] Address: [Your Address] Email: [your@email.com]

To: [Client Name] [Client Address]

Invoice Number: INV-0001 Invoice Date: [DD Month YYYY] Due Date: [DD Month YYYY]

Description | Qty | Rate | Amount [Description] | 1 | $1,000.00 | $1,000.00

Subtotal: $1,000.00 GST (15%): $150.00 Total NZD: $1,150.00

Payment Details: Bank: [XX-XXXX-XXXXXXX-XX] Reference: INV-0001 ---

Common mistakes to avoid

These are the compliance errors that come up most in GST audits:

• Missing the words "Tax Invoice": a regular invoice heading isn't sufficient
• No GST registration number: required on every tax invoice you issue
• Using the wrong date: the issue date goes on the invoice, not the completion date or payment date
• GST arithmetic errors: if your subtotal is $683.50, GST is $102.53, not $102.50. Rounding mistakes compound across many invoices
• Missing buyer details on invoices over $1,000: name and address of the recipient are mandatory
• No invoice number: not required under the GST Act, but required under income tax record-keeping rules and essential for matching payments