New Zealand GST Invoicing Guide

1. Overview

Sparrow Invoicing helps New Zealand businesses create clear, professional and GST-ready invoices. This guide explains the main GST invoicing requirements in New Zealand and how to manage them correctly in Sparrow.

In New Zealand, GST is charged at 15% on most taxable goods and services supplied by GST-registered businesses. Inland Revenue now uses the term taxable supply information instead of the old tax invoice requirements. Businesses may still title a document as a tax invoice if the required information is included.

2. What is GST?

GST means Goods and Services Tax. It is added to the price of most goods and services sold in New Zealand. If your business is GST-registered, you usually charge GST on taxable sales and may claim GST on business purchases, provided you hold the required records.

GST treatment options and when to use each in Sparrow
GST option	When to use it in Sparrow
15% GST	Standard taxable sales in New Zealand.
Zero-rated GST	Certain supplies where GST is charged at 0%, such as some exports or specific zero-rated supplies.
No GST / exempt	Where GST is not charged and the sale is not treated as a standard taxable supply.
GST inclusive pricing	Prices already include GST.
GST exclusive pricing	GST is added on top of the listed price.

3. Tax invoice vs taxable supply information

From 1 April 2023, Inland Revenue replaced the old tax invoice rules with taxable supply information rules. This means the required GST information does not always need to be kept in a single physical invoice document. Records such as invoices, bank statements, agreements and contracts can work together to support GST return figures.

For practical business use, Sparrow invoices should still include the key GST details in one professional invoice so customers, accountants and bookkeepers can easily rely on the invoice as GST evidence.

4. What a New Zealand GST invoice should include

Details a New Zealand GST invoice should include in Sparrow
Invoice detail	Recommended in Sparrow
Supplier business name or trading name	Yes
Supplier GST number	Yes, especially for invoices over $200 including GST
Invoice number	Yes
Invoice issue date	Yes
Due date	Recommended
Customer name	Yes
Customer address, email, phone, NZBN or website	Recommended, especially for invoices over $1,000 including GST to GST-registered buyers
Description of goods or services	Yes
Quantity, rate and amount	Recommended
GST-exclusive amount	Recommended
GST amount	Recommended
GST-inclusive total	Yes
Currency	NZD
Payment terms and payment details	Recommended

For supplies over $200 including GST, taxable supply information must be provided to GST-registered buyers within 28 days of a request, unless another date is agreed by the parties.

5. GST invoice information by supply value

GST invoice information required by supply value
Supply value	Information to keep or show
$200 or less including GST	Seller name or trading name; date of invoice or time of supply; description of goods or services; and consideration for the supply. A formal invoice does not have to be provided to the buyer, but both parties should keep records.
More than $200 and up to $1,000 including GST	Seller name or trading name; seller GST number; date; description; and either GST-exclusive amount, GST amount and GST-inclusive amount, or GST-inclusive amount with a statement that GST is included where the standard rate applies to all listed goods or services.
More than $1,000 including GST	The above details, plus buyer details if the buyer is GST-registered, including buyer name and at least one identifying detail such as address, phone number, email address, trading name, NZBN or website URL.

6. Creating a GST invoice in Sparrow

Go to Invoices.
Select New Invoice.
Choose the customer.
Add products or services.
Select the correct GST treatment, such as 15% GST, zero-rated or no GST.
Check the invoice total, GST amount and due date.
Save as Draft, then approve and send when ready.
Download or email the invoice PDF to your customer.

Sparrow should display GST clearly so the customer can see the subtotal, GST amount and total payable.

7. Invoice basis vs payments basis

Your GST return treatment depends on the GST accounting basis registered with Inland Revenue.

How each GST accounting basis is generally reported
GST basis	How GST is generally reported
Invoice basis	Sales are generally included when customers are invoiced, even if they have not paid yet.
Payments basis	Sales are generally included when payment is received from customers.
Hybrid basis	Usually combines invoice-basis treatment for income and payments-basis treatment for expenses.

8. Recommended Sparrow invoice status flow

Recommended Sparrow invoice statuses and their meaning
Status	Meaning
Draft	Invoice is being prepared and should be fully editable.
Approved	Invoice is ready but may not have been sent to the customer yet.
Sent	Invoice has been sent to the customer.
Partially paid	Some payment has been received.
Paid	Full payment has been received.
Credited	A credit note or supply correction has been applied.
Void	Invoice has been cancelled or voided.

9. Credit notes and corrections

The old GST terms credit note and debit note have been replaced by supply correction information. A correction may be required when an invoice has the wrong GST amount, wrong description, wrong date, wrong buyer or seller details, returned goods, cancelled items or other errors.

How to handle credit notes and supply corrections in Sparrow
Situation	What to do in Sparrow
Customer returned goods	Create a credit note or supply correction.
Invoice amount was too high	Create a partial credit note for the overcharged amount.
GST was charged incorrectly	Create a correction showing the GST effect.
Customer has already paid part of the invoice	Apply only the correct remaining credit and keep the payment history.
Invoice should not have been issued	Void or credit depending on the invoice status and record-keeping requirements.

Supply correction information should identify the original invoice or taxable supply information, the correction date, the corrected amount and the GST effect.

10. Record keeping

Businesses must keep GST records to support GST returns. Records can include taxable supply information, supply correction information, bank statements, invoices, receipts, credit card records, point of sale records and cashbooks. Inland Revenue generally requires business records to be kept for 7 years.

GST record types and why each matters
Record type	Why it matters
Invoices	Evidence of sales and GST charged.
Credit notes / supply corrections	Evidence of corrections, credits and GST adjustments.
Payment records	Important for payments-basis GST and customer balances.
Customer statements	Shows customer balances and payment history.
GST reports	Helps prepare GST returns.
Audit history	Shows who changed what and when.

11. GST return dates

GST-registered businesses must file GST returns for each taxable period, even if the return is nil. The general due date is the 28th of the month after the taxable period ends, with two key exceptions.

GST return and payment due dates by taxable period
Taxable period ending	GST return and payment due date
Most periods	28th of the month after the taxable period ends
31 March	7 May
30 November	15 January

Sparrow can support GST preparation by showing invoice totals, GST collected, payments received, credit notes and outstanding balances.

12. Common GST invoicing mistakes to avoid

Common GST invoicing mistakes and why they matter
Mistake	Why it matters
Forgetting to add the GST number	Can make GST evidence incomplete for supplies above relevant thresholds.
Using the wrong GST rate	Can cause incorrect GST returns.
Not recording payments	Affects GST reporting on payments basis.
Editing invoices without an audit trail	Creates record-keeping and customer dispute risk.
Crediting a paid invoice incorrectly	Can overstate credits or understate income.
Not keeping buyer details for high-value GST-registered buyer invoices	May make taxable supply information incomplete.
Treating zero-rated sales as exempt	They are reported differently in GST returns.

13. Recommended Sparrow invoice wording

Invoice heading

Tax Invoice

GST note

This invoice includes taxable supply information for New Zealand GST purposes.

Payment wording

Please pay this invoice by the due date shown above. Use the invoice number as the payment reference.

GST summary example

Worked example of a GST summary on an invoice
Description	Amount
Subtotal excluding GST	NZD 100.00
GST 15%	NZD 15.00
Total including GST	NZD 115.00

Source notes

Source references checked in June 2026. Users should confirm details with Inland Revenue or a tax adviser before relying on this guide for specific transactions.