Freelancer Invoice Guide for New Zealand

Whether you're a freelance designer, developer, writer, or consultant, getting your invoices right is essential to getting paid on time and staying compliant with NZ tax rules. Here's everything you need to know.

What to Include on a Freelancer Invoice

Every freelancer invoice in New Zealand should include these details:

• Your name (or trading name) and contact details
• Client's name and address
• Invoice number - a unique, sequential number
• Invoice date and due date
• Description of services provided
• Amount for each service or line item
• Total amount due
• Your bank account number for payment
• GST number and GST amount (if GST-registered)

Tax Invoice vs Standard Invoice

If you are GST-registered, you must issue a tax invoice that includes your GST number and shows the GST amount separately. If you are not GST-registered, you issue a standard invoice without GST.

Do Freelancers Need to Register for GST?

You must register for GST if your turnover exceeds $60,000 in any 12-month period. Below this threshold, registration is voluntary.

Voluntary registration can be beneficial if your business expenses are high, as you can claim back GST on purchases. However, it means you must charge GST on your services and file regular GST returns.

Payment Terms for Freelancers

Common payment terms used by NZ freelancers:

• Due on receipt - payment expected immediately
• 7 days - common for small jobs and ongoing clients
• 14 days - the most common term for freelancers
• 20th of the month following - common for regular contracts
• 30 days - typical for larger businesses and agencies

Shorter payment terms help with cash flow. If you're working with a new client, consider requesting a deposit or milestone payments for larger projects.

Invoice Numbering

Use a consistent, sequential numbering system for your invoices. This is important for your own records and for IRD compliance. Common formats include:

• INV-0001, INV-0002, INV-0003 - simple sequential
• 2026-001, 2026-002 - year-based numbering
• CLIENT-001 - client-based prefixes

Tips for Getting Paid on Time

• Send invoices promptly - ideally the same day you complete the work
• Include your bank account details clearly on the invoice
• Use clear payment terms and due dates
• Follow up with a friendly reminder if payment is overdue
• Consider offering a small discount for early payment
• For large projects, invoice in stages rather than at completion

Record Keeping

As a freelancer or sole trader, you are required to keep records of all income and expenses for at least seven years. This includes copies of all invoices you issue. Good record keeping makes tax time easier and protects you in case of an IRD audit.