Claiming expenses for GST: What information must a tax invoice show?

Claiming expenses for GST: What information must a tax invoice show?


Author: Michael Levertoff

What information must a tax invoice show?

If you want to claim an expense, make sure the business you are purchasing from issues you with a valid tax invoice - or it can't be  claimed.

EFTPOS receipts are not generally acceptable unless they follow the guidelines below. It is always good practice to get in the habit of asking the supplier for a valid tax invoice.

A tax invoice:
 shows the GST on the goods and services provided
 must be in New Zealand currency, and
 must be original. The GST registered supplier can only issue one original tax invoice for each taxable supply. If the purchaser loses the invoice, the supplier may issue a copy. It must be clearly marked "copy only".

Important
If you supply goods and services to another GST-registered person, you must provide a tax invoice within 28 days of the purchaser asking for one. It is an offence if you don't supply one after such a request and you may be charged penalties.

The information a tax invoice must show depends on the value of the goods and services supplied. We refer to the required information as "standards". Different standards are required for different tax invoices:
 For supplies worth:
 more than $1,000
 between $50 and $1,000, and
 $50 or less.

Tax invoice for supplies worth more than $1,000

For supplies worth more than $1,000 (including GST), the tax invoice must clearly show:
 the words "tax invoice" in a prominent place
 the name (or trade name) and GST number of the supplier
 the name and address of the recipient of the supply
 the date the invoice was issued
 a description of the goods and/or services supplied
 the quantity or volume of the goods and/or services supplied.
Examples: litres of petrol, hours of labour, kilos of potatoes etc.

It must also have either:
 the amount, excluding tax, charged for the supply
 the GST and the total amount payable for the supply, or
 a statement that GST is included in the final price if it has been.

Important
If the invoice covers a number of supplies which add up to more than $1,000, all the details listed above are needed.

Additional information
An example of a tax invoice for supplies worth more than $1,000

Tax invoice for supplies worth between $50 and $1,000
For supplies worth between $50 and $1,000 (including GST), a simplified tax invoice is acceptable. It must clearly show:
 the words "tax invoice" in a prominent place
 the name and GST number of the supplier
 the date the tax invoice was issued
 a description of the goods and/or services supplied
 the total amount payable for the supply, and
 a statement that GST is included.

Note
If you don't have a tax invoice, you can't claim a credit on supplies over $50.

Supplies of $50 or less
A tax invoice is not needed for supplies of $50 or less (including GST). However, it is best practice to keep records for these purchases, such as invoices, vouchers or receipts. At a minimum, record the date, description, cost and supplier of all purchases.

Note
You'll also need these details if you are going to make a claim for income tax purposes.

If you need further assistance please Ask a question.