Legal Invoice Template - New Zealand

Yes, legal services provided by law firms in New Zealand are generally subject to GST at the standard rate of 15%. This includes consultation fees, drafting services, research, court representation, and most professional advisory work. The only exceptions are services specifically exempted under GST legislation, which are rare in legal practice. Your invoices should clearly display the GST amount separately and include your IRD GST registration number if registered. Ensure your invoice template includes GST calculations to maintain compliance with Inland Revenue requirements and avoid disputes with clients over final amounts due.

Disbursements are third-party costs incurred on behalf of your client—such as court filing fees, statutory search fees, expert reports, or process server costs—and should appear separately from your professional fees. List disbursements with individual amounts and their GST treatment, as some may be GST-exempt. Professional fees represent your time and expertise; disbursements are actual expenses you've paid out. This separation helps clients understand what they're paying for and is essential for trust account accounting if client funds covered these costs. Your legal invoice template should have distinct sections for both categories to maintain clear financial records.

Most New Zealand law firms bill in minimum increments of 0.1 hour (6 minutes) or 0.25 hour (15 minutes), depending on their practice and client agreements. Using smaller increments like 0.1 hour reflects more accurate time-tracking and is fairer to clients, while 0.25 hour increments are common for larger matters. Whatever increment you choose, state it clearly on your terms or invoice. This helps clients understand billing expectations and reduces disputes. Your legal invoice template should show examples of how services are itemized using your chosen increment to ensure consistency and transparency in your billing practices.

A retainer is typically held in a trust account and invoiced as work is performed against it. When invoicing, show the retainer amount held, then deduct amounts as you work on the matter. Create separate line items for new work performed and the remaining retainer balance so clients see exactly what's been used. When the retainer is depleted, invoice for additional services separately or request a new retainer. This transparency prevents billing surprises and demonstrates compliance with legal accounting standards. Your invoice should clearly distinguish between retainer balances and fresh charges, with separate GST calculations where applicable.

Both hourly and fixed-fee billing are acceptable in New Zealand legal practice, often depending on the matter type. Hourly billing works well for unpredictable work like litigation or research, while fixed fees suit routine services like conveyancing or contract review. Many firms use hybrid approaches—fixed fees for straightforward elements and hourly rates for variations or unexpected complexity. Your client agreement should specify which method applies to each service. Your legal invoice template should be flexible enough to accommodate both approaches, with clear itemization so clients understand the value delivered regardless of billing method.

Most New Zealand law firms invoice with payment terms of 7, 14, or 30 days, with 14 days being common in legal practice. Some specialist areas or high-value matters may allow 30 days, particularly for corporate clients. Shorter terms like 7 days may apply if a client has payment history concerns. Your invoice should clearly state payment terms and accepted payment methods—bank transfer is standard in NZ. If your terms permit, late payment interest can be charged in compliance with applicable legislation. Display your bank account details and payment instructions prominently on the invoice to facilitate prompt settlement.

Unbilled disbursements—costs not yet paid by the firm—can be invoiced as advances or estimated costs, with clear notation that they're on-account and may be adjusted when actual invoices arrive. Alternatively, invoice only confirmed, paid disbursements with itemized proof or receipts attached. Check your client agreement to determine which approach applies. Transparency is essential: always itemize costs separately and explain whether they're confirmed amounts or estimates awaiting finalization. This prevents disputes and demonstrates professional financial management. Your legal invoice template should include clear notes distinguishing between paid and pending disbursements.

Yes, most New Zealand law firms invoice different services at varying rates based on several factors. Rates often differ by lawyer seniority—partners charge more than associates—and by service type; court attendance might command a higher rate than routine correspondence due to its specialized nature. Some firms maintain uniform rates across all work. Your client agreement should specify the rate structure upfront to avoid disputes. Your invoice template should clearly identify which lawyer provided which service and their applicable rate, especially on complex matters involving multiple team members. This transparency helps clients understand pricing and reinforces value delivered.