Personal Invoice Template - New Zealand

In New Zealand, sole traders and freelancers must register for GST when annual turnover exceeds NZD $60,000. Once registered, you're legally required to charge GST (15%) on all invoices to registered clients and include it on every invoice issued. However, even below the threshold, you can voluntarily register to claim back GST on business expenses. Including your GST registration number on invoices is mandatory once registered. If you're unsure whether you've crossed the threshold, check with Inland Revenue or your accountant.

New Zealand invoices must include your full name or business name, physical address, and once GST-registered, your IRD number. Include the client's name and address for reference and audit purposes. Your contact details should be clear enough for queries or payment instructions. An invoice date, invoice number, and itemized description of goods or services are legally required. Payment terms and due date help establish clear expectations. While phone numbers and email addresses aren't legally mandated, including them reduces payment delays from confusion.

Specific, detailed service descriptions prevent clients from querying invoices and delaying payment. Rather than writing 'Consulting,' specify 'Digital marketing strategy consultation—3 hours at $150/hour.' Include dates worked, project phases, or deliverables completed. Break down complex projects into separate line items so clients see exactly what they're paying for. Clear descriptions reduce back-and-forth emails and protect you if payment is disputed. Detailed descriptions also help you track billable work accurately for future projects and tax records.

Standard payment terms for New Zealand freelancers range from Net 7 to Net 30 days, with Net 14 being most common. Invoicing after work completion rather than upfront is typical for ongoing clients. Consider shorter payment terms (Net 7) for new or one-off clients where trust isn't established. Longer terms (Net 30) may be acceptable for established corporate clients. Clearly state your payment terms on every invoice to avoid misunderstandings. Some freelancers require a deposit for larger projects, which should be noted separately on the invoice.

Once you're registered for GST, displaying your IRD number on invoices is mandatory in New Zealand. If you're below the GST threshold, including your IRD number is optional but recommended for professionalism and to establish your tax identity with clients. Your IRD number helps clients track payments for their own accounting records and demonstrates legitimate business operations. Never assume a client won't check your registration status. Including it proactively builds trust and prevents later complications with payments or disputes.

The NZD $60,000 annual turnover threshold determines whether you must register for GST. Below this threshold, you don't charge or collect GST—your invoice amounts are what clients pay. Once registered, you must add 15% GST to all invoices, making effective prices higher for registered clients. You benefit by claiming back GST on business expenses like software, equipment, and supplies. Staying just below the threshold sounds attractive but limits your ability to claim expense deductions and may raise red flags with Inland Revenue during audits.

Sequential numbering is standard and legally preferred—starting at 001 and incrementing (002, 003, etc.). Many freelancers include a date prefix, such as '20250720-001,' combining the date with a sequence number for easy reference. This system helps you and clients track invoices chronologically and makes accounting simpler. Gaps in numbering can look unprofessional and raise questions during audits. Avoid random or alphabetical numbering, as Inland Revenue expects a clear, auditable trail. Consistent numbering also prevents accidentally issuing duplicate invoice numbers to different clients.

Inland Revenue requires freelancers and sole traders to keep all invoices and supporting records for at least seven years in New Zealand. This includes copies of issued invoices, client payment records, and GST calculations. Retention is mandatory whether records are physical, digital, or cloud-based—the format doesn't matter. Seven years covers the current year plus six prior years, allowing for audits and disputes. Digital storage is acceptable, but ensure files are secure and backed up. Missing invoices during an audit can result in penalties or tax reassessment.