GST and Invoice Rules for NZ Sole Traders

You are a sole trader in New Zealand billing local clients, and you want to know two things: when you have to charge GST, and what has to be on the invoice so nobody sends it back. Both have clear answers. Get them right once and you can copy the same layout for every job.

When you have to register for GST

The trigger is turnover. If your business turnover in any 12-month period is over 60,000 dollars, or you expect it to pass 60,000 dollars in the next 12 months, you must register for GST with Inland Revenue. Below that, registration is optional.

The 12-month test is rolling, not a calendar year. If your last 11 months came to 55,000 dollars and you just signed a 10,000 dollar contract that will complete next month, you have crossed the line and need to register. Do not wait for the tax year to tick over.

The standard GST rate is 15 percent. Once you register, you add 15 percent to your taxable supplies and file GST returns (usually two-monthly or six-monthly for a sole trader). You also get to claim GST back on business expenses, which is why some people register voluntarily below the threshold. If your costs carry a lot of GST, voluntary registration can be worth it. If you sell mainly to consumers who cannot claim it back, adding 15 percent can make you look more expensive, so weigh it.

For a wider picture of how goods and services tax works across regions, the GST entry in our glossary covers the mechanics. For a country-by-country view of rates, see the reference on VAT and GST rates by country.

What a compliant tax invoice must show

New Zealand's rules changed under the taxable supply information regime, but the practical requirement is the same as it has always been: give the buyer enough to claim their input tax. The exact fields depend on the amount.

For a supply over 1,000 dollars (GST-inclusive), a full tax invoice needs:

• The words tax invoice shown clearly
• Your name and GST number
• The date of the supply or the invoice date
• A description of the goods or services
• The buyer's name and address (or other identifying details)
• The quantity or volume where relevant
• The amount, plus either the GST charged separately or a statement that GST is included

For supplies of 1,000 dollars or less, you can use a simplified version: your name and GST number, the date, a description, and the total showing that GST is included. If you are not registered for GST, you do not put a GST number on anything and you do not charge the 15 percent. Just issue a plain invoice.

Show the GST line explicitly when you can. An AP clerk claiming input tax wants to see the 15 percent broken out, not buried in a round total. A subtotal, a GST line, and a total is the cleanest layout. Our definition of a tax invoice spells out how it differs from a plain sales document, and the what to include on an invoice checklist is a quick pre-send scan.

Bank details and payment conventions

Most NZ payments settle by direct bank transfer, so your bank account number is the field that actually gets you paid. Format it as the standard 15 or 16 digit number: bank, branch, account, suffix (for example 12-3456-7890123-00). Put the account name exactly as it appears on your bank records so the payer's system does not flag a mismatch.

Give the payer a reference to quote. Your invoice number is the obvious choice, because it lets you reconcile the deposit without guessing. If you invoice a company that runs a purchase order process, add their PO number too, or the payment can sit unapproved for weeks.

If any of your clients are overseas, you will need more than a local account number: an international transfer wants a SWIFT/BIC code and, in some corridors, an IBAN, which New Zealand banks do not issue. The guide to international invoicing done practically walks through what to add for cross-border work.

A layout you can reuse for every job

Put it together in one order and stop rebuilding it. Header with the words tax invoice, your trading name, and GST number. Invoice number and date. Client name and address. Line items with a clear description and quantity. Subtotal, GST at 15 percent, total. Bank account name, account number, and the reference to quote. Payment terms, such as net 20 or due on the 20th of the following month, which is a common NZ convention.

You can hold all of that in a document, but the friction shows up after you send it. The client wants a PO number added, or their billing entity is slightly wrong, and you are back in a chain of revised PDFs. JupiterInvoice handles that differently: you send a private link, and the recipient can add their PO number or correct their billing address themselves while your invoice number, GST number, and bank details stay locked. You get notified, and you can revert anything. When they approve, that version locks permanently.

The country page on invoicing in New Zealand collects the field requirements and conventions in one place. When you are ready to send, you can create an invoice and share the link in a couple of minutes. It is free to use, with a small footer you can remove on a paid plan.

Register when you cross 60,000 dollars, break out the 15 percent, and give the payer a clean account number and a reference to quote. That is most of what keeps an NZ invoice moving.