Independent Contractor Invoice Template - New Zealand

Once your annual turnover exceeds $60,000, you must register for GST with the IRD. After registration, you're required to add GST (currently 15%) to your invoices. If you're below the threshold, you can choose to register voluntarily. When invoicing, clearly state the GST amount separately—don't just include it in the total. Keep records of your turnover to track when you'll reach the $60,000 threshold, as penalties apply if you fail to register when required. Many contractors register early to appear more established and to reclaim GST on business expenses.

Yes, if you're registered for GST, your IRD number must appear on every invoice. Place it prominently—typically near your business name and contact details at the top of the invoice. For contractors not yet GST-registered, including your IRD number is still recommended for professional credibility and to assist clients with their own tax records. The IRD number format is eight digits, sometimes written with or without spacing. This requirement helps clients identify you for tax purposes and demonstrates compliance with NZ standards.

Showing GST as exclusive (added separately on the invoice) is clearer for most contractor invoices and aligns with standard NZ business practice. This method allows clients to see exactly how much GST you're charging and makes it easier for them to claim back GST if they're registered. GST-inclusive pricing (absorbing the tax in your quoted rate) can confuse clients about the true service cost. For professional credibility, GST-exclusive invoices demonstrate transparency and compliance awareness. Many clients expect this format, especially larger businesses that track tax inputs.

An NZ contractor invoice must include your name and address, the client's name and address, invoice number and date, a detailed description of services provided, the amount charged, and GST (if applicable) shown separately. If GST-registered, your IRD number is mandatory. Payment terms and due date should be clearly stated. Include a unique invoice number so both you and your client can reference it easily. The invoice should clearly indicate who the provider (you) is and who the recipient (client) is to avoid confusion.

Net 7, Net 14, or Net 30 are standard payment terms for NZ contractors—choose based on your cash flow needs and client relationship. Net 30 (payment due 30 days after invoice) is common for larger projects, while Net 14 suits smaller jobs. Consider requiring a deposit for new clients or large projects to reduce financial risk. State your terms clearly on every invoice. Late payment penalties or interest charges can be added if agreed upfront, though this varies by client relationship. Building relationships often matters more than strict payment terms.

For overseas clients, invoice in your local currency (NZD) or in the client's currency—both are acceptable. If you're GST-registered, overseas services are typically zero-rated (GST-free) for most business-to-business services, so clearly mark GST at 0% or omit GST entirely. State this clearly so the client understands they're not paying NZ tax. Use an international payment method like bank transfer, PayPal, or Wise. Exchange rate fluctuations mean you might lose money if you invoice in the client's currency, so factor this into your pricing. Currency conversion fees may also apply.

Keep copies of all invoices sent and received for at least seven years from the end of the financial year they relate to. The IRD requires this for tax compliance and GST audits. Store both digital and paper copies securely—losing records can result in penalties. Include supporting documents like timesheets, project agreements, and payment confirmations. Cloud storage or accounting software makes retention easier and more reliable than paper files. Regular backups protect against accidental loss. If the IRD requests records during an audit, you need quick access to everything.

You can absolutely invoice for deposits and retainers upfront—this is standard practice for many contractors. For large projects, invoicing a deposit before work begins reduces your financial risk. A retainer invoice bills the client in advance for ongoing availability or services over a specified period. Clearly label these invoices as 'Deposit Invoice' or 'Retainer Invoice' to avoid confusion. Specify how the deposit will be applied—whether toward the final invoice, held as credit, or used for future services. Terms should be agreed before work starts to prevent disputes.