How to Invoice in New Zealand

Whether you are a freelancer, sole trader, or running a small business in New Zealand, getting your invoicing right is essential. This guide covers everything you need to know about creating professional, compliant invoices.

What to Include on Your Invoice

Every invoice you send should include these key details:

1. Your business name and contact details - including your address, email, and phone number
2. Your client's name and address - so there is no confusion about who is being billed
3. A unique invoice number - use a sequential numbering system (e.g., INV-0001, INV-0002)
4. The invoice date - when the invoice was issued
5. A due date - when payment is expected
6. A clear description of services or goods - be specific about what you provided
7. Quantities and unit prices - break down each line item
8. The total amount due - including any GST if applicable
9. Your payment details - bank account number for payment

GST Invoices vs Standard Invoices

If you are registered for GST, you must issue tax invoices that show the GST component. A tax invoice includes all the standard invoice details plus:

• The words "tax invoice"
• Your GST/IRD number
• The GST amount charged (at 15%)
• Whether prices are GST-inclusive or GST-exclusive

If you are not GST registered, you do not charge GST and should not show a GST amount on your invoices. You also cannot use the term "tax invoice".

Setting Payment Terms

Common payment terms in New Zealand include:

Tips for NZ Freelancers

• Invoice promptly - send your invoice as soon as work is completed
• Keep records - store copies of all invoices for at least 7 years (IRD requirement)
• Use consistent numbering - sequential invoice numbers help with record-keeping and look professional
• Include your NZBN - if you have a New Zealand Business Number, include it on your invoices for credibility
• Follow up on late payments - send a friendly reminder if payment is overdue
• Consider GST registration - even if your turnover is below $60,000, voluntary registration lets you claim back GST on expenses

Common Invoicing Mistakes to Avoid

• Forgetting to include your GST number (if registered)
• Using duplicate invoice numbers
• Vague descriptions of services provided
• Not specifying payment terms or due dates
• Charging GST when you are not registered
• Not keeping copies of sent invoices

Sole Trader vs Company Invoicing

As a sole trader, you invoice under your own name or a trading name. You use your personal IRD number for tax purposes. If you operate as a company, you invoice under the company name and use the company's IRD number. Both can register for GST independently of their business structure.