Law Firm Invoice Template - New Zealand

GST at 15% applies to most legal services in New Zealand, including consultations, research, drafting, and court appearances. However, certain services may be zero-rated or exempt depending on circumstances. Always include the GST amount separately on your invoice so clients understand the total cost. Your invoice should clearly show the GST calculation, usually with a line stating "GST (15%)" to ensure transparency and compliance with IRD requirements. Maintaining detailed records of GST applied to each service type helps with your tax returns and GST reconciliation.

Separating services like consultation, research, document drafting, and court appearances provides transparency and helps clients understand what they're paying for. This breakdown demonstrates the value of different types of legal work—a court appearance, for instance, involves preparation time beyond the courtroom appearance itself. Detailed itemization also protects you by creating clear evidence of work performed, which is important if billing is questioned. Finally, it helps you track which services are most time-intensive and allows for better billing analysis within your practice.

Court appearances typically command higher hourly rates than office-based work due to the complexity, preparation required, and professional risk involved. You may also include travel time at a reduced rate if significant travel is involved. Your invoice should clearly itemize the court appearance separately (e.g., "Court appearance—District Court Wellington") along with the hours and applicable rate. Some practices charge a flat appearance fee rather than hourly, particularly for straightforward matters. Whatever approach you use, ensure it's consistent and clearly communicated to your client beforehand.

A compliant NZ legal invoice must include your law firm's name, address, and contact details; the client's name and address; a unique invoice number; the invoice date; a description of services rendered; hours worked and hourly rates (or fees); GST applied separately; the total amount due; and your payment terms. The invoice should also reference any matter number or file reference relevant to the client's case. These details aren't just professional standards—they're necessary for both parties to maintain clear records for accounting, tax, and potential dispute resolution purposes.

Disbursements—costs paid on behalf of your client such as filing fees, court charges, or expert report fees—should be itemized separately from your professional fees. Create a distinct section on your invoice clearly labeled "Disbursements" or "Costs" with each item listed individually. This separation shows clients exactly what they're paying for professional time versus out-of-pocket expenses. If you've paid these costs from your trust account, that should be transparently reflected. Maintaining receipts for all disbursements is essential for client reconciliation and compliance with NZ legal practice rules.

Document research and preparation time using the same detailed approach as face-to-face services—list the specific research task, hours spent, and applicable rate. For example: "Legal research—planning and zoning regulations (6 hours @ $320/hour)." This transparency helps clients understand that legal work extends beyond meetings; thorough research provides the foundation for strong advice. You might also briefly describe the scope of research in the description field if your template allows. Accurate time tracking as work occurs—rather than estimating later—ensures your charges are defensible and fair.

Standard payment terms for NZ legal invoices typically range from 7 to 30 days, with many practices using 14 days as the default. Your choice should reflect your firm's cash flow needs and client base expectations. Specify terms clearly on the invoice (e.g., "Payment due within 14 days"). Some practices offer a small discount for early payment, while others charge interest on overdue balances—ensure you've notified clients of these terms in advance. Whatever terms you establish, apply them consistently across all clients unless there are specific agreements in place.

When invoicing against a retainer, create an invoice for work performed as usual, then note the retainer applied. For example, if the invoice total is $2,500 and $1,500 has been retained, show the balance of $1,000 as due. Your invoice should reference the retainer clearly, perhaps stating "Less retainer paid: $1,500" so the client understands the calculation. Maintain separate records of retainer funds in a trust account as required by NZ legal practice rules. Regular invoicing against a retainer ensures clients understand the retainer is being used and provides transparency about remaining funds.