Freelance Invoice Template - New Zealand

Whether you charge GST depends on your registration status. If your annual turnover exceeds $60,000, GST registration is compulsory; below this threshold, registration is optional. GST-registered freelancers must charge and remit GST, but can claim GST on business expenses. If you're not registered, you cannot charge GST. Registering voluntarily—even if not required—can improve client perception and allow you to reclaim expenses. Clearly state your GST registration number and GST amount on invoices to avoid confusion and ensure proper record-keeping for IRD compliance.

Your invoice must include your business name and address, the client's name and address, a unique invoice number, the invoice date, a clear description of services provided, the amount charged, and payment terms. If GST-registered, display your GST registration number and GST amount separately. Include your payment details such as bank account information or email for online payment options. While New Zealand doesn't mandate formal invoicing for freelancers below the GST threshold, invoices with these elements create clear payment records and protect both you and your clients in disputes.

Net 7 or Net 14 (payment due within 7–14 days) are common for freelancers, though Net 30 suits larger projects. Setting clear terms upfront protects your cash flow and manages client expectations. Bank transfer is the standard payment method in New Zealand and should be your primary option—include your account details on the invoice. Many freelancers request deposits or milestone payments for extended work to reduce payment risk. Being specific—"Payment due by [exact date]"—is clearer than vague terms and helps you maintain professional relationships while protecting your income.

You must retain invoices for at least seven years from the date of issue, an IRD requirement that applies to all freelancers regardless of GST registration status. Invoices are evidence of income and support GST claims if registered. Digital copies are acceptable as long as they're legible and complete. Create an organized system—filing by date or client—to make retrieval easier during audits or payment disputes. Seven years aligns with the IRD's audit window and protects you from queries about payment or service delivery. Proper invoice storage demonstrates good business practice and compliance.

List each service separately with its own description, rate, and amount. This clarity helps clients understand what they're paying for and simplifies dispute resolution. For example, if billing website design, content writing, and social media setup, itemize each on separate lines with quantities and rates. If charging hourly, show hours multiplied by your hourly rate; if charging by project, show the flat fee with a brief scope description. Detailed line items make your GST calculation transparent and protect you in payment disputes. Always include subtotal, GST if applicable, and final total.

Follow up promptly and professionally. Send a polite reminder email within 3–5 days of the due date, referencing the invoice number and amount. If payment doesn't arrive within another week, escalate to a phone call or formal follow-up email. Keep records of all communication. After 30 days overdue, consider a final notice stating further action will be taken. Some freelancers charge late payment fees, but verify your contract terms first. While New Zealand lacks specific late payment legislation for small businesses, persistent non-payment may warrant small claims court action. Clear payment terms reduce late payments significantly.

You can use any sequential numbering system that works for you, provided invoices are unique and non-repeating. A common format is YYYYMMDD-001 (date-sequence) or YY-001 incrementing annually. The IRD doesn't mandate a specific format, but consistency and sequential order matter for audit trails. Avoid gaps or duplicate numbers, which raise red flags during reviews. Sequential numbering demonstrates professional accounting and simplifies tracking over the seven-year retention period. Never skip numbers or reuse invoice numbers. Many accounting software platforms auto-generate sequential numbers, reducing manual errors and ensuring compliance.

Yes, you can invoice international clients in NZD, and many do. However, clients must either pay in NZD or cover currency conversion costs. If you prefer invoicing in their local currency, research exchange rates carefully and consider hedging against volatility for large contracts. GST rules change for international clients—services supplied overseas typically fall outside GST. Use payment platforms like Wise or Stripe to minimize conversion fees and manage international payments efficiently. Always clarify currency and payment method before invoicing. For frequent international work, consulting a tax accountant about GST and tax residency implications is worthwhile.