Inland Revenue is changing the GST rules for invoicing and record keeping.

This means GST registered businesses may need to update some of their business processes and systems.

The changes are designed to support e-invoicing and electronic record keeping.

When do these changes take effect?

Most of the changes come into effect on 1 April 2023.

The 30 March 2022 changes

Changes to requirements for expense claims

Previously, you needed to keep a tax invoice to claim GST on any supplies costing more than $50 (including GST) you bought for your taxable activity.

You must still keep records to support your expense claims, including a tax invoice if you receive one.

However, if you do not receive a tax invoice, you can keep other records that are sufficient on their own, or in combination to support your expense claims. For example: invoices, supplier agreements, contracts and bank statements.

Sellers still need to produce tax invoices

When you sell goods and services, you must continue to produce tax invoices for sales costing more than $50 (including GST) until 31 March 2023.

Copies of tax invoices no longer need to be marked as ‘copy only’.

Requirements for supplier groups

A supplier group must meet the following conditions.

• There are 2 or more registered persons.
• The registered persons are not part of the same GST group.
• The members must agree:
• the issuing member will issue tax invoices, credit notes and debit notes for each supply of goods and services made by a member of the group
• no other member of the group can issue tax invoices, credit notes or debit notes.

The agreement must be in writing and include each member’s name (or trade name), address and GST number.

If the reason for entering the agreement is not part of the members’ normal terms of business, each member must also record why they have entered the agreement.

GST groups

Starting on 30 March 2022, a member of a GST group can use either the representative member’s or their own registration number on tax invoices they issue

Changes taking effect on 1 April 2023

New laws introduced by the Government, taking effect on 1 April 2023, have modernised the GST rules for invoicing and record keeping.

You’ll no longer need to keep a single physical document holding the supply information, such as a tax invoice, credit note, or debit note. Your transaction records, accounting systems and contractual documents may, in combination, contain all the information you need to support the figures in your GST returns.