When is a tax invoice a "tax invoice"?
First of all, it has to be a one off original – the only way it can be presented again is if it has “copy only” clearly marked on it.
It must show the GST on the goods and services provided.
It needs to show all costs in New Zealand currency.
Did you know, however, that if you are GST registered and you supply goods/services to someone who is also GST registered you have to provide an invoice within 28 days of a request by the purchaser; otherwise it is an offence which can attract penalties!
Click below to download your Free Tax Invoice Template
What needs to be included on your invoice?
For goods and services of $50 or less you don’t have to have a tax invoice but you need to keep the records – especially if you want to make any claims for income tax. Records include invoices, vouchers or receipts or a list showing date, goods/service, cost and supplier etc.)
For anything between $50 and $1000 (GST inclusive) your tax invoice must show:
1. The words “tax invoice”.
2. Name and GST number of the supplier.
3. The date the invoice was issued.
4. A clear description of the goods/services supplied
5. The total amount to pay.
6. A statement that GST is included
Remember: If you do not have an invoice you can’t claim for a credit on supplies over $50.
For goods and services over $1000 (including GST) – this includes an invoice where a number of individual items adds up to over $1000, your tax invoice must show:
1. The words “tax invoice”.
2. Name (or trade name) and GST number of the supplier.
3. The name and address of the recipient.
3. The date the invoice was issued.
4. A clear description of the goods/services supplied with the quantities supplied e.g. volume/units/hours
5. The amount excluding tax to pay and the GST and total amount to pay or
6. a statement that GST is included in the final price.
There are a few other types of invoices – buyer created, multiple suppliers and the type an agent may use e.g. if an agent purchases or sells goods on behalf of someone else, then that someone is still the purchaser or seller, not the agent. If both the parties are GST registered then the agent can issue a tax invoice on their behalf with just the agent’s details (as long as that is the only invoice issued for that goods/services). Sometimes that agent can be an employee acting on behalf of their employer and be reimbursed for expenses and the employer can claim the GST credit. Records must be kept as well.
As you can see, there is more to invoicing than you thought. A good idea is to set up a template with all information required, regardless of whether your invoices are for $30 or $3000 and use that for everything – that way you will know that you are always meeting the requirements of a tax invoice.'
Click here to download your Free Tax Invoice Template
Creating tax invoices is easy on Xero - contact us to arrange a free demo - 09 639 1004
