Australia
Preparing for changes to GST invoicing requirements
22 December 2022 | Minutes to read: 2

Preparing for changes to GST invoicing requirements

By William Buck

Earlier this year, the Government enacted changes to the GST invoicing and record-keeping requirements. From 1 April 2023, the current tax invoice requirements are being relaxed to reduce compliance costs for businesses and facilitate the introduction of e-invoicing.

Since the inception of GST in New Zealand in 1986, there has been significant changes to technology and the business environment. However, the rules and requirements governing tax invoices have largely remained unchanged. That’s about to change with the latest Tax Bill introducing new recordkeeping requirements for GST purposes and in particular the rules around tax invoices.

What will be changing?

From 1 April 2023, sellers won’t need to issue and hold a tax invoice to be entitled to claim GST input tax credits. Instead, the GST requirements would be met if relevant new ‘taxable supply information’ is provided and held, regardless of the source(s), as evidence of a transaction. This could include:

  • documents containing contractual information
  • systems and databases holding key supplier/customer information, or
  • sales and purchasing documentation issued.

However, the taxable supply information requirements will operate in parallel with the current tax invoice requirements, which means organisations will be able to choose to maintain the status quo or adopt the new requirements.

There will be three value thresholds for taxable supply information:

Value of supplies Taxable supply information required to claim GST tax input credits Information required for buyers
For supplies of $200 or less Sellers will need to supply:

  • Name of supplier
  • Date of invoice, or where no invoice is issued, the time of supply
  • Description of the goods or services
  • The consideration for the supply (payment or amount)
Sellers are not required to provide taxable supply information to the buyer but are required to keep a record of the supply.

 

For supplies over $200 Sellers will need to supply:

  • Name of supplier and GST number
  • Date of invoice or when no invoice is issued, the time of supply
  • Description of the goods or services
  • The GST-exclusive amount, GST amount and GST-inclusive amount, or
  • The GST-inclusive amount and a statement GST is included when it is charged at the standard rate for goods and services.
Taxable supply information must be provided to GST registered buyers within 28 days of a request for the taxable supply information (or by an alternative date agreed to by the parties) for supplies over $200.
For supplies exceeding $1,000 Sellers will need to supply:

  • Name of supplier and GST number
  • Name of buyer and identifier details
  • Date of invoice or when no invoice is issued, the time of supply
  • Description of the goods or services
  • The GST-exclusive amount, GST amount and GST-inclusive amount, or
  • The GST-inclusive amount and a statement GST is included when it is charged at the standard rate for goods and services.

Preparing for this change

With tax invoices no longer required to be issued and collected, businesses will need to ensure they have systems in place to satisfy the new taxable supply information requirements. This may require a shift in focus from purely GST compliance to the maintenance of supply and buyer information and checks on the validity of this information.

The Government is still working through a number of minor remedials and tidy-ups before 1 April 2023 and Inland Revenue will be publishing more guidance on these changes.

If you have any questions or need advice, our William Buck advisors can provide additional support – we’re here to help.

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