Date posted: 07/09/2022

Is your system ready for new GST invoicing rules?

Changes to the GST invoicing rules, as part of tax legislation passed in March 2022, will take effect from April 2023. These changes will affect almost all businesses – and have so far attracted very little comment.

In brief

  • New rules and list of required information
  • The changes align with recent advances in technology
  • Taxable supply information no longer needs to be in a single document

The new GST rules align with advances in technology and the Pan European Public Procurement Online (Peppol) international protocol. Peppol provides a set of technical specifications that can be implemented in existing business systems to allow them to easily exchange information with each other.

The new rules regulate that instead of sending a “tax invoice”, a supplier will be able to provide “taxable supply information” to the recipient using existing business channels. While businesses can continue to use tax invoices to provide this information, it can be in any form and does not need to be in a single document. It could result from a system-to-system transfer of information where no people are involved. To document that the supply has been made, a business only needs to have the required information, in whatever form it prefers.

The information required is as follows:

  • information identifying the supplier and the recipient
  • the amount of the consideration payable for the supply of goods or services
  • the date of the supply
  • a description of the goods or services supplied
  • the amount of GST charged for the supply (which can be on an inclusive basis)

CA ANZ suggests that most if not all of this data should be currently recorded in business systems. If you are unsure, it is recommended that you check the requirements carefully and talk to your system provider about any changes that might be needed.

There is a big change – to the law, but probably not to business processes – for recipients of supplies. A GST registered business that has purchased goods or services no longer needs to hold a tax invoice to claim back the GST paid on the purchase. Instead, they will need to hold a similar set of business information to support the GST input tax claim.

More information on the changes can be found on the Inland Revenue’s website from 12th September.

Some more good news: new section 19Q(1) of the GST Act allows a reference to a tax invoice to be read as including a reference to taxable supply information, to the extent necessary to sensibly reflect the intent. So if you want to ask for a tax invoice, you still can.

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