How to Invoice as a Sole Trader in New Zealand (GST and Non-GST)
Most New Zealand sole traders start out not registered for GST, and that is exactly as it should be. You only have to register once your turnover reaches NZ$60,000, and below that you invoice without GST at all. Yet a lot of new sole traders either add 15 percent they are not entitled to collect, or worry they are doing something wrong by sending an invoice with no GST on it. Neither is necessary. There is also a wrinkle most guides miss: since April 2023, New Zealand no longer uses the old "tax invoice" rules at all.
This guide covers how to invoice as an NZ sole trader: the GST threshold, invoicing without GST, the taxable supply information rules that replaced tax invoices, and a sample invoice you can copy.
GST: register at NZ$60,000
You must register for GST once your turnover reaches NZ$60,000 in any 12-month period, or if you expect to pass it. Below that, registration is optional (some register voluntarily to claim GST back on expenses).
This single fact decides what your invoice looks like:
| Not GST registered | GST registered | |
|---|---|---|
| Add 15% GST? | No | Yes |
| Show a GST line? | No | Yes |
| GST number on invoice? | You do not have one | Yes, required |
| IRD number needed? | Yes, for your own tax | Yes |
If you are not registered, you do not charge GST, you do not show a GST line, and you must not display a GST number you do not have. Charging GST you are not registered to collect is a costly mistake, and one we flag in our common invoice mistakes guide.
The 2023 change: "taxable supply information"
Here is the part most templates have not caught up with. On 1 April 2023, Inland Revenue replaced the old prescriptive "tax invoice" rules with a more flexible framework called taxable supply information (TSI).
The practical effect: you no longer have to issue a document literally headed "Tax Invoice" with a fixed set of fields. Instead, GST-registered sellers must simply provide the required information to the buyer, and it can be spread across normal business documents. What must be supplied scales with the value of the sale:
- Up to NZ$200: minimal information (your name, GST number, the date, a description, and the amount including GST).
- NZ$200 to NZ$1,000: more detail, including the amount of GST charged or a statement that GST is included.
- Over NZ$1,000: the above plus the buyer's name and address (or other identifying details).
In practice, a clean, complete invoice satisfies TSI comfortably, which is why a good invoice template still works. But you are not legally bound to the old "tax invoice" wording anymore.
Invoicing without GST (most new sole traders)
If you are under the threshold, your invoice is simple. Include:
- Your name and business name
- The customer's name
- A unique invoice number and the invoice date
- A description of the goods or services
- The amount, with no GST added
- Your payment terms and bank account number
You do not need a GST number, and you should not show one. Some sole traders add a short line such as "Not registered for GST" to head off questions from a customer's accountant. It is not required, but it removes any doubt.
One point of confusion worth clearing up: your IRD number and a GST number are not the same thing in practice. Every sole trader has an IRD number, which is how Inland Revenue identifies you for income tax, and you use it on your tax return. A GST number is what you get when you register for GST, and it is what belongs on invoices where you charge the 15 percent. If you are not GST registered, you do not put either number on the invoice; your name, the customer's name, and your bank details are what matter.
Sample NZ invoice (GST registered)
Here is a GST-registered sole trader's invoice.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Landscape design consultation | 1 | $850.00 | $850.00 |
| Site visits | 3 | $120.00 | $360.00 |
| Subtotal (excl. GST) | $1,210.00 | ||
| GST (15%) | $181.50 | ||
| Total (incl. GST) | $1,391.50 |
The invoice shows the seller's GST number, itemises the work, and shows GST as its own line. Because this sale is over NZ$1,000, the buyer's details also belong on it under the TSI rules. For the mechanics of applying tax, see our how to add tax to an invoice guide.
Exports and overseas clients
Services you supply to a client outside New Zealand are generally zero-rated for GST, meaning you charge 0 percent even when you are registered. This is common for NZ freelancers with Australian, US, or UK clients: they charge 15 percent to New Zealand clients and zero-rate the overseas ones. The exact treatment depends on where the service is consumed, so confirm your situation. For the cross-border picture, see our how to invoice international clients guide.
Getting paid and keeping records
Two habits protect an NZ sole trader:
- State clear payment terms (Net 7, Net 14, or Net 20 on the 20th of the following month, which is a common New Zealand convention) and put your bank account number on every invoice. See our payment terms guide.
- Keep every invoice for seven years. Inland Revenue requires it, and your income tax return and any GST returns depend on those records.
For the full New Zealand rules alongside the tool, see our New Zealand invoice generator page. For nearby markets, see our Australia and UK pages.
Common NZ sole trader invoice mistakes
- Charging GST when not registered.
- Showing a GST number you do not have.
- Not registering after passing NZ$60,000.
- Missing the buyer's details on invoices over NZ$1,000.
- Forgetting your bank account number, so the client cannot pay you.
Make a New Zealand invoice in 60 seconds
You do not need accounting software to invoice correctly as an NZ sole trader. Invoicara's free invoice generator lets you switch GST on or off, apply the 15 percent rate, add your GST number, number invoices cleanly, and export a professional PDF that satisfies the taxable supply information rules, whether you are registered or not. No sign-up, no watermark, free forever.
For the basics, see our complete guide on how to make an invoice and our freelance invoice template guide. Only charge GST if you are registered, supply the right information for the value of the sale, add your bank details, and keep your records, and invoicing as a New Zealand sole trader is genuinely simple.