New rules on GST invoicing apply from 1 April 2023. Make sure your business is ready to cope with the changes.
Even though the new GST invoicing rules still allow ‘tax invoices’ to be issued after 1 April 2023, make sure you think about:
- Your accounts payable processes. Do your systems or staff automatically reject invoices which don’t have the words ‘tax invoice’ on them? If so, review this as your suppliers (and customers) may update their systems for the new rules. You may receive invoices after 1 April 2023 which don’t have these words on the invoice. The same will apply for credit notes, debit notes and buyer-created tax invoices.
- Your information management systems. Review your systems to ensure supplier and customer databases can handle the taxable supply information requirements, especially recipient information (e.g. physical address and NZBN options).
- Reviewing arrangements with suppliers and customers where buyer-created invoicing is more appropriate. Where you are entering into new buyer-created taxable supply information arrangements, you will need to retain the correct records (including copies of the agreements).
- The time of supply rules. Certain transactions will have a different time of supply to the date the invoice is created. From 1 April 2023, the time of supply must be included in taxable supply information.
- Training your staff on the new rules, including what is required to support GST input tax deductions. As well as a refresher on GST, it will also give you the opportunity to review supplier/customer arrangements and ensure all business/trade terms are current and comply with the new rules.
- Progressing towards e-invoicing if you haven’t already. These new GST invoicing rules have been introduced to cater for technology and business processes. More efficient invoicing processes could benefit your business.
April 2023 is not that far away. Please contact us to help you assess what your business may need to do before then!
Blog
Explore our latest articles
Enjoy our latest news and blog posts
Blog title heading will go here
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros.
Blog title heading will go here
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros.
Blog title heading will go here
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros.
A strong strategy is the heart of your successful business
Businesses that have clear objectives or goals, robust accountability and a shared sense of purpose should always outperform those that just show up and go through the motions. Strategy lies at the heart of most successful businesses. To achieve this you need to resource and execute with a clear purpose....
Want to Save Money? Look at your Expenses.
Running a business will always mean incurring certain expenses, or ‘spend’. There are always costs, overheads and supplier bills that mount up – and these expenses will gradually chip away at your cash position. This can make it more difficult to grow and make a profit. So, what can you...
Accounting Basics: The Profit and Loss Report
The profit and loss report is a key report when it comes to getting in control of your entity's financial health. What’s a profit and loss statement? Your profit and loss statement is commonly called your P & L, but is also referred to as your income statement or statement...