GST record keeping requirements are changing

IRD is making changes in what records are required to be maintained in recognition of cloud based and electronic record preparation and maintenance. Some changes have already come into effect. The rules relating to tax invoices are changing from 1 April 2023.

How you calculate GST is not changing, only the rules relating to invoicing and record keeping.

From 1 April 2023 you'll no longer need to keep a single physical document holding the supply information. Records maintained in your accounting software or your transactions records will be all that is needed to support the amounts in your GST returns. IRD has prepared an on-line tool to indicate what information is required to be maintained (and supplied to customers) in place of the paper invoice. These depend on the value of the transaction, with differing requirements for transactions less than $200, between $200--$1,000, more than $1,000, overseas, or second hand goods. This is available on their web-site.

For the $200-$1,000 items, there are no differences from what is currently required, except the buyer’s details are not required.

Records are required to be maintained for seven years, so it will take some time for these record keeping requirements to fully work through the system.

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