New Zealand has proposed ending the obligation to create, issue and hold Goods and Services Tax (GST) invoices to reflect the digitisation of accounting and the future use of e-invoicing. New Zealand is currently in electronic invoicing trial with Australia.
Whilst many details remain to be clarified, this proposal may come into force in March 2022.
Requirements around electronic invoices and right to deduct still vague. Monitor VAT Calc’s international live VAT invoice transaction and e-invoice tracker on real-time transaction-based tax reporting.
The New Zealand proposal includes:
- Goods and Services Tax invoices to be replaced by secure electronic communications on the supply details.
- The supplier and business customer would be obliged to retain electronic records of transactions under as yet to be specified requirements. This would replace the requirement to hold a paper-invoice as proof of the right to deduct GST
- The withdrawal of the NZ $1,000 simplified invoice option