When thinking about GST, “easy” and “modern” are not usually words that spring to mind – complex, frustrating, and onerous may seem more appropriate.

However, the introduction of cloud accounting systems and document and data capture software, has simplified record keeping and preparing GST returns. With the advent of e-invoicing, businesses are now even able to send invoices from accounting system to accounting system.

Given the advancements in technology and the way businesses now interact, the IRD have reviewed the requirements in relation to GST invoicing and record keeping with new rules on the way.

These rules are aimed at modernising GST requirements for invoicing and record keeping, allowing for greater flexibility.

It’s important to note the way you calculate GST is not changing.

From 1 April 2023, however, there are changes to terminology, rules, and documentation requirements. These include the following:

• The requirement to use tax invoices is being replaced by a more general requirement to provide and keep certain records known as “taxable supply information.”
• You'll no longer need to keep a single physical document holding the taxable supply information, such as a tax invoice, credit note, or debit note.  
• Your transaction records, accounting systems and contractual documents may, in combination, contain all the information you need to support the figures in your GST returns.  (However, as taxable supply information also includes tax invoices, you can keep using tax invoices if you wish.)
• The information you need to provide or keep depends on the value and the type of supply. These are broken into the following brackets 

o  Less than $200

o  $200 - $1,000

o  More than $1,000

o  Imported goods and services

o  Second-hand goods

• Taxable supply information can be provided using an automated direct exchange between a buyer's and seller’s software, for example PEPPOL e-invoicing. 

Compiling your GST information may not yet be enjoyable, but it’s certainly an improvement on the processes of the past.

If you have any questions regarding the impending changes, contact Nigel to discuss today.

See our disclosure information on our website.

January 2023