Creating professional, compliant invoices and quotes isn’t just about looking good to your customers—it’s a legal requirement for GST-registered businesses in New Zealand. The right templates save you time, ensure you meet Inland Revenue requirements, and help you get paid faster.
According to research by Xero, invoices with clear payment terms are paid an average of 36% faster than those without. For small businesses managing cash flow (as we discussed in our previous post), this difference can be significant.
If you’re registered for GST in New Zealand, your invoices must meet specific requirements to be considered tax invoices. These requirements differ based on the value of the goods or services:
Your invoice must include:
All of the above, plus:
Failing to provide proper tax invoices can result in compliance issues for both you and your customers, as they need valid tax invoices to claim GST credits.
Beyond meeting the legal requirements, effective invoice templates should:
While quotes don’t have the same legal requirements as invoices, they’re essential for setting clear expectations and winning business. A professional quote template should:
For businesses with specific needs, creating custom templates in Word or Excel gives you complete control. However, you’ll need to ensure all calculations are accurate and all required fields are included.
Solutions like Xero, MYOB, and QuickBooks offer built-in templates that handle GST calculations automatically and ensure compliance. These systems also help with tracking payments and managing customer information.
Many organisations offer free or low-cost templates specifically designed for New Zealand businesses. These templates typically include all the required fields and correct GST calculations.
For businesses that send many invoices or quotes, investing in professionally designed templates that match your brand can be worthwhile.
Remember that in New Zealand, GST is calculated at 15% of the GST-exclusive amount. Make sure your template calculates this correctly.
Each field on a tax invoice is required by law. Leaving out your GST number or not clearly indicating that GST is included can create problems.
“Payment due upon receipt” is less effective than “Payment due within 7 days.” Be specific about when and how you expect to be paid.
Invoice numbers should follow a logical sequence and ideally include information about the customer or project for easy reference.
Many payment delays occur simply because invoices are sent to the wrong contact. Confirm the correct recipient, especially for larger organisations with separate accounts payable departments.
To help your business maintain compliance and project professionalism, we’ve created a set of free, customisable templates specifically designed for New Zealand businesses:
Click on the links above
Having the right templates is just the first step. To truly optimise your invoicing process:
Send invoices immediately after delivering goods or services when your value is fresh in the customer’s mind.
Develop a system for following up on unpaid invoices at regular intervals (e.g., 7 days, 14 days, 30 days).
The easier it is to pay you, the faster you’ll receive payment. Consider offering credit card payments, direct debit, or even buy-now-pay-later options.
Early payment discounts (e.g., 2% if paid within 7 days) can improve cash flow and reduce collection efforts.
Maintain records of all quotes, invoices, and payments for at least 7 years as required by Inland Revenue.
Professional, compliant invoicing and quoting isn’t just about meeting legal requirements—it’s about creating a seamless experience for your customers while protecting your business. By using well-designed, GST-compliant templates, you present a professional image, ensure legal compliance, and increase your chances of getting paid promptly.
Start with our free templates, adapt them to your business needs, and make professional invoicing part of your business success strategy.
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