Find out what records you have to keep to support the figures in your GST returns and the disclosure information required
*Always seek specialist advice that is tailored to your situation and risks.
The below information is available to download as a pdf
New record keeping laws now in effect
New legislation, which took effect on 1 April 2023, and in doing so replaced the requirement to use tax invoices with a more general requirement to provide and keep certain records known as taxable supply information.
The new rules set out the minimum set of records required to support the figures in your GST returns.
The definition of taxable supplies and how you calculate GST has not changed, only the rules relating to invoicing and record keeping.
New terms now apply.
Old Term | New Term |
|---|---|
Tax invoice | Taxable supply information |
Debit note / credit note | Supply correction information |
Buyer-created tax invoice | Buyer-created taxable supply information |
The changes are designed for greater flexibility, on the basis that your invoicing practices were compliant with the old rules then you will be complying with the new rules.
You do not need to change the wording of the GST documents your business uses to reflect the new terms. For example, you may continue to provide taxable supply information in a single document marked as a 'tax invoice'.
Tax invoices from your suppliers
For Income Tax
You must keep records (such as invoices, vouchers or receipts) for these supplies so they can be included in your income tax return. There is no minimum level for not keeping invoices/receipts, as there is with GST.
For GST
You need to retain and have available to provide if requested, information known as taxable supply information (previously known as tax invoices).
Taxable supply information refers to the minimum set of information buyers and sellers need to keep as evidence of a transaction. The taxable supply information required depends on the value and the type of supply and no longer needs to be in a single physical document, such as a tax invoice, credit note, or debit note.
Taxable supply information includes invoices, but it can also include information held in other forms, such as supplier agreements, contracts, and bank statements.
You need to retain taxable supply information if you want to claim GST on purchases and expenses relating to your GST-registered business activity.
If you have not received a taxable supply information (aka tax invoice) you can ask the supplier to send you one.
Taxable supply information must be provided to GST-registered buyers within 28 days of a request (or by an alternative date agreed to by the parties) for supplies over $200.
Taxable supply information should only be provided once, but if the buyer loses theirs, you can provide a copy. You do not need to mark it as a copy.
Amounts of money must be expressed in New Zealand currency.
Keep all your tax invoices so you can claim the expenses in your income tax and GST returns.
Disclosure Information Required on Taxable Supply Information (tax invoices):
$200 or less | More than $200 and up to $1000 | More than $1000 | |
|---|---|---|---|
Seller's details | Name or trade name of seller | Name or trade name of seller | Name or trade name of seller |
GST Number | GST Number | ||
Buyer's details | Not required | Not required | Name and 1 or more of the following: Physical or postal address, phone number, email address, trading name if different to buyer's name, NZ business number or website URL |
Date | Date of invoice If no invoice is provided, use the time of supply date | Date of invoice If no invoice is provided, use the time of supply date | Date of invoice If no invoice is provided, use the time of supply date |
Information on the goods or services | Description of the goods or services | Description of the goods or services | Description of the goods or services |
Payment information | The consideration for the supply. Consideration can be a payment, an act, holding back using a legal right e.g. forgiving debt instead of enforcing payment. | Either Option 1: GST exclusive amount, GST amount or GST inclusive amount | Either Option 1: GST exclusive amount, GST amount or GST inclusive amount |
Excluded - an unconditional gift paid to a not-for-profit | Option 2: GST inclusive amount and a statement GST is included, charged at the standard rate for all the goods and services listed | Option 2: GST inclusive amount and a statement GST is included, charged at the standard rate for all the goods and services listed |
Imported Goods & Services | Second-hand Goods | |
|---|---|---|
Seller's details | Name or trade name of the seller. Address | Name or trade name of the seller. Address |
Buyer's details | Not required | Not required |
Date | Date of invoice If no invoice is provided, use the time of supply date | Date the goods were supplied |
Information on Goods & Services | Description of the goods or services | Description of the goods or service. Quantity or volume of the goods |
Payment information | The consideration for the supply. Consideration can be a payment, an act, holding back using a legal right e.g. forgiving debt instead of enforcing payment. | |
Organising Your Supplier Invoices
There are numerous ways to organize your invoices. Use what is relatable to you and your operation. Examples include:
Paper Based Files
Filed according to date paid
Filed according to invoice date
Use a divider between each month or GST return period
Remember if the invoice is from an Eftpos or similar device, you should photocopy the invoice as the ink on these invoices have a limited life.
Electronic Files
You save an electronic version of the invoice. The files can be stored as:
Filed according to date paid
Filed according to invoice date
Example naming conventions:
Supplier name and invoice date
Supplier name and invoice number
Supplier name, invoice date, invoice number
Supplier name, date paid, invoice number, dollar amount
Example Electronic Folder Structures:
Finance>FY2023>2023 01 April 2022>Xero INV-6703653.pdf
Finance>FY2023>2023 02 May 2022
Finance>FY2023>2023 03 June 2022
Finance>FY2023>2023 04 July 2022
Documents & Files Stored Against Transactions in Accounting Packages
1. Invoice Retention
With most accounting packages you are able to store documents against each transaction. We recommend you also have a copy of this information stored electronically within your Business Finance eFolder.
Not all accounting packages offer you the opportunity to download invoices in bulk at the end of each year, or at the time of cancellation of the subscription, so we recommend you also store a copy electronically within your electronic documents.
There are electronic tools available to help you enter information into your accounting package. Don’t think you need to do a whole lot of manual processing. There is software available which not only saves an electronic copy of your purchase, but also enters most of the data into your accounting package.
If you or your team have a tendency to lose receipts/invoices we recommend you take advantage of the various expense apps which you can download to your phone.
Examples include: Xero Expenses; MYOB Capture App, EzzyBills, Hubdoc, Expensify
2. Approval Processes
If you have many people who make purchases, and others who need to approve or authorise the purchase you may like to think about using software to streamline and automate this process.
Software such as EzzyBills and ApprovalMax are examples of such software.
We can help you identify a process that will work for you, as well as implement and train your team on how to use these products.
How long to keep your records for?
Either seven or ten years. A company has to keep records for ten years, all other entities have to keep records for seven years.
Keep all your business records (including those in electronic form) for at least seven years from the end of the tax year or the taxable period they relate to.
There will be some records that need to be kept for the life of your entity/business. Talk to us about what these records are.
Even after you stop operating your business you still have record-keeping responsibilities
If you complete your Employment information - IR348 electronically, you do not have to keep a paper copy, but you'll need to ensure you can reproduce the schedules. Your payroll records are a base for the data on the schedules and you must keep these records for seven years.
Disclaimer
This article is for informational purposes only and should not replace specific tax advice. For
personalised advice please contact us.
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