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IRD announces changes to GST Invoicing System

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Wellington, October 21, 2022

The Inland Revenue Department (IRD) has announced changes to the GST invoicing and record-keeping system, allowing for greater flexibility for businesses.

The new system, which will be enforced from April 1, 2023, will include changes to terminology, rules, and documentation requirements.

The use of tax invoices will be replaced by a more general requirement to provide and keep certain records known as ‘taxable supply information,’  and the customer will not be required to maintain a single physical document holding the taxable supply information, such as a tax invoice, credit note, and debit note.

Transaction records, accounting systems and contractual documents may, in combination, contain all the information you need to support the figures in your GST returns.

“However, as taxable supply information also includes tax invoices, you can keep using tax invoices if you wish. The information you need to provide or keep depends on the value and the type of supply.  Taxable supply information can be provided using an automated direct exchange between a buyer’s and seller’s software, for example, PEPPOL e-invoicing,” IRD said.

Greater flexibility assured

Customers have been advised to familiarise themselves with the new rules.

Although they may decide not to adopt the changes but will still be affected if their suppliers decide to change.

“For example, if you purchase goods after 1 April 2023, the invoice you receive from the supplier may no longer include the term ‘tax invoice’. This is now acceptable for tax reporting purposes. Customers must identify how these new rules may impact their business processes and systems.  If they use a third-party software, they should ask their provider about how they are incorporating these changes into their software,” IRD said.

IRD has also advised customers to determine what changes they should make to be ready for the changes from the next financial year.

Caution against tax-related scams

In another statement, IRD has warned people against scams.

“IRD will never send you an email requesting you to confirm, update or disclose confidential details through an unsecured channel such as email. You should always independently verify the source and the target URL before taking any action. If you receive suspicious communication of this nature, do not respond to it or follow any links. Forward it to phishing@ird.govt.nz. For more information about protecting your identity visit Inland Revenue’s website and keyword search SCAM. Alternatively, you could visit either the ID Care or Netsafe websites for further guidance,” IRD said.

 

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