How to Invoice as a New NZ Company: GST, PAYE, and Getting Paid

Your First Invoice as a New NZ Company

Getting paid is the point of being in business. But invoicing incorrectly from the start can create GST problems, IRD audits, and cash flow headaches. Here is what new NZ company directors need to know.

Do You Need to Charge GST?

If your taxable turnover exceeds NZ$60,000 in any 12-month period, you must register for GST. Below that threshold, registration is optional but often beneficial (you can claim back GST on business expenses). Register via myIR before you hit the threshold. Once registered, you must charge 15% GST on all taxable supplies and file GST returns.

What Must a Tax Invoice Include?

A valid tax invoice must include: the words "Tax Invoice", your company name and GST registration number, the date of issue, description of goods or services, the amount excluding GST, the GST amount, and the total amount. Missing any of these means your customer cannot claim a GST input credit.

Setting Payment Terms

Common NZ business payment terms: 7 days net (high-trust clients), 20th of following month (traditional NZ trade terms), or 30 days net (professional services). Include payment terms on every invoice and add a late payment clause if you deal with slow payers.

Getting Paid Faster

Send invoices the same day work is completed. Accept online payment (bank transfer with clear reference, or Stripe/PayPal payment links). Send a payment reminder 3 days before the due date and follow up at 7, 14, and 21 days past due.

PAYE and Contractor Invoices

If you pay contractors, check the IRD contractor or employee test. Contractors issue their own invoices; employees need PAYE deducted from wages. Getting this wrong triggers substantial IRD penalties.

Next Steps

Most new NZ companies benefit from setting up accounting software in their first week. An accountant or bookkeeper can configure GST reporting, invoice templates, and bank feeds in a single setup session. Looking for a local professional? FreshFirms Connect matches new businesses with accountants and bookkeepers in their region.