For businesses, getting invoicing right means being paid on time, keeping records straight, and staying compliant with tax laws. In New Zealand, invoices play an integral role in business operations, and not including the correct details can slow down payments or lead to tax challenges. A well-structured invoice and properly defined payment terms can make all the difference.

Below, we’ll explain what information to include on an invoice in New Zealand, when to issue a tax invoice, how to set payment terms that work for you, and what to do when a client doesn’t pay on time.

What’s in this article?

• What is an invoice in New Zealand?
  
• What information should be included on a valid New Zealand invoice?
  
• When is a tax invoice required in New Zealand?
  
• How does Stripe help New Zealand businesses with invoicing?
  

What is an invoice in New Zealand?

An invoice is a financial document that records a sale between a business and a customer. In New Zealand, invoices track what was sold, who bought it, and how much is owed. They help businesses manage cash flow, keep clean records, and comply with tax laws.

Invoices represent income and goods and services tax (GST) collected, if applicable, for sellers and proof of an expense and GST paid for customers. Beyond tax compliance, invoices help businesses stay organized, track who owes money, and provide a paper trail that can help prevent disputes.

A well-structured invoice makes payments more manageable by tracking outstanding amounts and setting due dates and expectations to avoid delays. Come tax season, accurate invoicing means you can report income correctly and claim GST where needed.

What information should be included on a valid New Zealand invoice?

A valid invoice in New Zealand needs to be straightforward, structured, and legally compliant. Whether you’re invoicing for a one-off project or managing ongoing billing, each invoice should include these details:

Business information

• Your business name (or trading name)

• Your address and contact information (email or phone number)

• Your GST number if GST-registered

Customer information

• The customer name

• The customer address if the invoice is $1,000 New Zealand dollars (NZD) or more

• The specific department or contact name if you’re invoicing a large business

Invoice information

• A unique invoice number (e.g., INV1001, INV1002)

• The invoice date

• Each item or service provided

• Quantities, unit prices, and totals (e.g., “10 x Widget A at $50 NZD each” or “consulting—5 hours at $120 NZD/hour”)

• Any additional details relevant to the purchase, such as serial numbers or reference codes

Pricing information

How you display the total depends on your GST status. If you’re not GST-registered, include:

• The total amount

• A statement that no GST is included

If you’re GST-registered, you must include:

• The subtotal before GST

• The total amount including GST

• The GST amount separately if the sale is $1,000 NZD or more

• A label indicating the invoice is a “tax invoice”

Payment terms and instructions

• When payment is due (e.g., “due on receipt” or “payment due within seven days”)

• How payment should be made (e.g., bank transfer, credit card options, Stripe payment link)

• Any late fees or early-payment discounts

• Any outstanding balance if partial payment or a deposit was required

When is a tax invoice required in New Zealand?

If your business is registered for GST, tax invoices are part of doing business, and they’re required by the Inland Revenue Department (IRD). But not every sale needs a tax invoice, and the rules depend on the transaction size and whom you’re selling to.

Regular invoice vs. tax invoice

If your business isn’t registered for GST, tax invoices don’t apply to you, and your invoices will show the total amount due. If you are registered for GST:

• A tax invoice is required for sales over $50 NZD. Purchases of $200 NZD have an added requirement that you must issue one within 28 days.

• A formal tax invoice isn’t required for sales of $50 NZD or less excluding GST, though some businesses provide them as best practice. Those that don’t would still provide a standard receipt that lists the cost of the item purchased as well as the GST.

Elements of a tax invoice

A tax invoice is a regular invoice that includes extra details the IRD requires. If you’re already invoicing correctly, you’re including most of these details anyway. The difference is that if an invoice lacks these elements, your customer can’t claim back the GST, and that can be a problem for them—so businesses tend to expect tax invoices, especially for larger purchases. To count as a tax invoice, your document must have:

• The words “tax invoice”

• Your business details and GST number

• The invoice date

• The customer’s name and address if the sale is $1,000 NZD or more

• A clear description of the goods or services

• The GST calculation if the sale is $1,000 NZD or more

• The currency conversion rate for foreign currency invoices

How does Stripe help New Zealand businesses with invoicing?

The goal of invoicing is to get paid on time with minimal hassle. Stripe Invoicing handles this process for New Zealand businesses by integrating invoicing with payment collection, tax compliance, and automation. Here’s how Stripe makes invoicing more efficient:

Creating invoices

With Stripe, you can generate invoices from the Stripe Dashboard or application programming interface (API), which eliminates the need for separate invoicing software. Instead of manually creating PDFs, you use Stripe templates to send invoices via email so customers can pay instantly with a “pay this invoice” button. Stripe automatically handles invoice numbering, payment due dates, and GST calculations if applicable.

Accepting payments

Typically, when you make payments as easy as possible for customers, you get paid faster. Invoices sent via Stripe can be paid immediately online using multiple payment options, including:

• Credit or debit cards

• Bank transfers

• Apple Pay, Google Pay, or other digital wallets

Following up on payments

Chasing overdue invoices takes time. Stripe helps by:

• Sending automatic payment reminders before and after the due date

• Retrying failed payments for recurring invoices (e.g., subscriptions)

• Tracking invoice statuses in real time, letting you see when an invoice was issued, when the customer paid, or whether it’s overdue

Handling recurring billing

Businesses that invoice regularly (e.g., subscription services, retainers, ongoing contracts) can benefit from Stripe’s automated recurring invoices. This is particularly useful for software-as-a-service (SaaS) businesses, consultants, and service providers who need predictable cash flow. After you set up the recurring invoice once, Stripe:

• Sends invoices on schedule

• Adjusts for prorated amounts if needed

• Can auto-charge a saved payment method

Maintaining GST compliance

Stripe helps your invoices meet New Zealand tax requirements. You can automatically add your GST number to invoices, and Stripe Tax calculates GST for each transaction. Stripe has additional features that help you stay compliant with IRD rules. For example, if you and your customer have GST numbers saved, invoices are automatically labeled “tax invoice.”

Tracking invoices in real time

Within the Stripe Dashboard, you can track each invoice’s status. When someone pays an invoice, Stripe updates the status automatically and can send confirmation receipts. Stripe integrates with accounting software such as Xero and QuickBooks, which reduces manual data entry and makes reconciliation simpler.

Harnessing multicurrency and international invoicing

If you have international clients, Stripe simplifies payments across borders:

• Stripe issues invoices in multiple currencies, and customers see the amount in their local currency.

• Stripe converts payments and deposits the funds in NZD or another chosen currency.

• Stripe supports local payment methods such as Alipay, WeChat Pay, GrabPay, and more.