Whether you're a freelance designer in Auckland or a sole-trader builder in Christchurch, every invoice you issue needs to meet the Inland Revenue Department's (IRD) requirements. Get it wrong and your client may be unable to claim GST back — which means awkward conversations and slow payment.
This guide covers exactly what the IRD requires on a New Zealand tax invoice, when those requirements kick in, and how to handle GST correctly at 15%.
Do you need to register for GST?
GST registration is mandatory once your taxable turnover exceeds — or is expected to exceed — NZD $60,000 in any 12-month period. You can register voluntarily below that threshold, which can be worthwhile if your clients are GST-registered businesses that want to claim back GST on your invoices.
If you're not registered for GST, you issue standard invoices (not "tax invoices") and do not charge GST. These invoices still need to identify you and the services clearly, but the IRD-specific tax invoice requirements below don't apply.
What is a "tax invoice" in New Zealand?
A tax invoice is the specific document required under the Goods and Services Tax Act 1985 whenever a GST-registered person supplies taxable goods or services. Your clients need your tax invoice to claim a GST deduction (an "input tax credit"). Without a valid tax invoice, they can't claim back the GST they paid you.
What must appear on a New Zealand tax invoice
The IRD's requirements depend on the total invoice amount (GST inclusive):
| Field | Under $1,000 | $1,000 and over |
|---|---|---|
| The words "Tax Invoice" | Required | Required |
| Your name (supplier) | Required | Required |
| Your GST registration number | Required | Required |
| Date of invoice | Required | Required |
| Description of goods/services | Required | Required |
| GST-inclusive amount | Required | Required |
| GST amount (or statement that GST is included) | GST included statement OK | GST amount must be shown separately |
| Recipient's name and address | Not required | Required |
| Quantity of goods / extent of services | Not required | Required |
Simplified tax invoice: For supplies under $1,000 (GST inclusive), you can issue a simplified tax invoice. It still needs your name, GST number, date, description, and GST-inclusive total — but you don't need to separately state the GST amount (you can just note "Prices include GST at 15%").
Calculating GST at 15%
NZ GST is charged at a flat rate of 15%. There are two ways to present it:
- GST-exclusive pricing: Quote your fee before GST (e.g. $1,000), then add GST separately ($150), making the total $1,150.
- GST-inclusive pricing: Quote the total including GST ($1,150), then show the GST component using the formula: Total ÷ 23 × 3 = GST amount ($1,150 ÷ 23 × 3 = $150).
Either approach is valid — just be consistent and show the GST amount clearly on every invoice over $1,000.
Your IRD/GST number format
Your GST number is the same as your IRD number. It appears in the format XXX-XXX-XXX (8 or 9 digits). This number must appear on every tax invoice you issue. Keep it visible — many freelancers put it directly below their business name in the invoice header.
Recipient-created tax invoices (RCTI)
In some industries (dairy farming, certain contracting work), the buyer creates the invoice rather than the supplier. This is called a Recipient-Created Tax Invoice (RCTI). Both parties must be GST-registered and have a written agreement in place. This is uncommon for most freelancers but worth knowing about if you work with agricultural or large corporate clients.
Record-keeping requirements
The IRD requires you to keep tax invoice records for at least 7 years. These records must be available for inspection if the IRD requests them. Digital records are accepted — you don't need paper copies — but they must be legible and accessible.
What happens if an invoice is missing required details?
If your tax invoice is missing required information, your client technically cannot claim the GST back. In practice, the IRD may allow alternative evidence to support the claim, but it creates risk and administrative burden for your client. Missing invoices are a common audit flag, so it's worth getting it right from day one.
Practical tip: Always send invoices as PDFs, not editable documents. A PDF prevents accidental edits and creates an unambiguous record of what you invoiced.
Checklist: IRD-compliant tax invoice (over $1,000)
- The words "Tax Invoice" clearly displayed
- Your business name
- Your GST registration number (IRD number)
- Invoice date
- Description of services with quantity and unit rate
- Recipient's name and address
- GST-exclusive subtotal
- GST amount (15% of subtotal)
- GST-inclusive total
- Payment due date and bank account details
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