New rules on GST invoicing apply from 1 April 2023. These have been designed for 21st century business record-keeping and modernise invoicing rules in place since 1986, based on paper-based record-keeping systems.

The rules are permissive, so businesses can issue current tax invoices without falling foul of the new rules. However, this doesn’t mean you can ignore them. Your suppliers and customers may introduce changes to their systems stemming from the new rules. You need to be ready to cope with receiving ‘taxable supply information’ in different formats, as opposed to a ‘tax invoice’.

What’s changing?

It’s important to note there are no changes to the imposition or calculation of GST – these new rules only relate to information requirements.

A major component supporting the GST system’s integrity is the provision of prescribed information about taxable supplies contained in a tax invoice. Considerable changes have occurred in business practices relating to transactional information and technology since GST’s introduction over 35 years ago, and the new rules reflect this. They are less prescriptive, allowing the way supply information for goods and services is created, provided, and retained to be determined as part of normal record-keeping processes.

From 1 April 2023 businesses must retain a minimum set of information relating to transactions, and are no longer required to issue a ‘tax invoice’ for GST purposes. Don’t forget, however, that normal commercial and contract law still require invoices and record-keeping requirements. Invoices must still be used to notify the customer of their obligations for a taxable supply, but from 1 April 2023 an invoice will not need to meet the old prescriptive requirements such as displaying the words ‘tax invoice’.

We’re here to help, if you’d like to discuss how the changes affect your business.