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E-invoicing in New Zealand

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Everything You Need to Know

E-invoicing in New Zealand is now a reality. The private sector and government agencies started adopting electronic invoicing by late 2019. A quick overview of what must do to start using e-invoices for your business in New Zealand:

E-invoicing in New Zealand is now a reality. In fact, the private sector and government agencies started adopting electronic invoicing by late 2019. Here’s a quick overview of what must do to start using e-invoices for your business in New Zealand:

  • Get your NZBN to enable e-invoicing.
  • Determine what you need to implement electronic invoicing, such as the need to upgrade your ERP system.
  • Choose a PEPPOL certified Access Point Provider to reorient your ERP system (if need be) and connect you to the PEPPOL e-invoicing network.
  • Complete your system integration with e-invoice standards.
  • Shift to e-invoices and start to enjoy the benefits of electronic invoicing.

Whether you’re a small business owner or a large corporation with a vast network in and outside New Zealand, adopting electronic invoicing will help you save thousands of dollars in transactional costs every year.

E-invoicing replaces the paper invoice or PDF invoice that you post or email to your trading partners, then scan or enter manually into your accounting system.

Why Should the Private Sector Use e-Invoices in New Zealand?

The reason behind the e-invoicing project by the New Zealand government is to help businesses – more so the small and medium enterprises – get paid on time.

The government is leading from the front to sensitize New Zealand’s business owners on the need to start using e-invoices.

More specifically, the government agencies participate in a project dubbed “Supplier Pay On-Time or Pay Interest.”

All agencies participating in the exercise agreed to pay e-invoices up to $1 million in ten days or less. Further, the agencies pledged to pay interest if they failed to keep this promise.

You can read more about this policy on the Department of Finance’s official website.

Getting paid on time isn’t the only reason the government wants you to shift to e-invoices.

Benefits of E-invoicing for New Zealand Private Businesses

Reduced Errors – With electronic invoicing, you don’t have to handle invoices manually. You don’t even have to re-key information. The ripple effect is a reduced potential for data entry errors.

Security – e-invoices move electronically from one business’ ERP system to another. You can be 100 percent sure that no one will tamper with your invoices.

Reliability – Adopting electronic invoicing means that your data remains consistent from the start to the finish of a transaction, enabling downstream analysis. Further, this helps you make accurate predictions and plans.

Traceability – You can track the delivery of your e-invoices directly into your financial system before approval and payment.

Better trade relations – Reduced errors translate into fewer follow-ups. The benefit is that you’ll build your business’s reputation as “good to work with.”

Indeed, there’s every reason for New Zealand’s businesses to adopt e-invoicing.

So, how can you start to enjoy the benefits of electronic invoicing in New Zealand? That question leads us to the second segment of this post.

But, first things first.

PEPPOL in
New Zealand

To understand e-invoicing in New Zealand, we must talk about PEPPOL.

New Zealand implemented Peppol in 2019 following negotiations between the Ministry of Business, Innovation, and Employment (MBIE), the Australian Taxation Office (ATO), and significant players in the e-invoicing industry.

By joining OpenPEPPOL, the county is now participating in a global framework connecting 38 nations worldwide with registered Access Point Providers in 26 countries, making cross-border e-invoicing possible.

On top of that, New Zealand is leveraging the capabilities of PEPPOL (such as e-orders) to set the stage for a fully-electronic B2B trading in the country.

Why are we talking about the PEPPOL framework in New Zealand?

… because you have to engage a PEPPOL-approved Access Point Provider to help you connect to the PEPPOL network.

Talking to a PEPPOL-certified Service Provider is a crucial step toward adopting e-invoicing in New Zealand.

That takes us to our next point.

Getting Started with e-Invoicing in New Zealand

So, you decided to adopt e-Invoicing. How do you go about it? Here’s how.

  • Know your New Zealand Business Number (NZBN). Businesses get the number automatically on registration, so you should have one. You can get it on the New Zealand Network official website if you don't have one.
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  • In addition, you can use the NZBN-Business-Match service to find the NZBNs of multiple businesses.

What next?

Choose a Service Provider

You’ll need to engage a PEPPOL accredited service provider to connect your businesses to the PEPPOL network and, by extension, enable you to use electronic invoicing.

Service providers fall under two categories;

Accounting software providers offer financial management software solutions that can support e-invoicing.

E-invoicing service providers – These connect you to the PEPPOL eDelivery network.

How do You Select a Service Provider In New Zealand?

Here’s a rundown of factors to consider when choosing a New Zealand access point provider.

  • PEPPOL Certified – The service provider you choose to work with must have approval from PEPPOL to provide Access Point Services.
  • New Zealand Capability – The provider must be able to offer services for New Zealand businesses. Note – you will require translation services if your accounting/procurement system cannot send or receive New Zealand PEPPOL e-Documents. In such a scenario, choose a service provider with translation services in their package.
  • Ability to Offer a Variety of Services – You’re better off with an Access Point provider who can offer various services ranging from simple to complex functions such as specialized messages, SMP, etc.

Other considerations to make include;

  • Ability to offer various connectivity options such as AS4, SFTP, and API.
  • Round the clock customer service
  • International capability
  • Ability to meet your businesses security
  • Provide notifications when your e-invoices /business documents cannot be delivered.
  • A variety of pricing plans to suit your budget.

Unimaze – Your to-go-to New Zealand Service Provider

Unimaze is an experienced Access Provider and your business’s bridge to e-Invoicing in New Zealand.

We’re PEPPOL-accredited and have the infrastructure required to enable a direct digital exchange of e-invoices and e-Procurement documentation with your trading partners.

With Unimaze as your New Zealand Access Point provider, you can easily create and send electronic invoices to suppliers and customers worldwide, creating more opportunities for your business.

What more?

We’re future-proof. YES. We will support your current and future e-invoices sending and receiving requirements.

Stay on top of your payments and maintain a positive cash flow. Contact Unimaze support today to get started with e-invoicing.

FAQs

  • How do you invoice someone in NZ?

Here’s a step-by-step procedure of how to invoice someone in New Zealand?

  • Get the unique invoice number for the person you want to invoice.
  • One your invoice template and include the date.
  • Enter the invoice number.
  • Fill out your customer’s name, address, reference, and order number.
  • Enter a description of what you exchanged, in this case, the goods or services.
  • Add up the costs.
  • Re-check your invoice for errors or omissions.
  • Get your invoice approved.
  • Please send it to the recipient, and be sure to file a copy for your tax records.

Note – You can use the Unimaze e-Invoice Generator to help you create your invoice in seconds.

  • How long do you have to invoice someone in NZ?

The standard requirement to send your trading partner and invoice in New Zealand is thirty days. It is essential to point out that most companies pay accounts on the 30th of every month.

Still, some of your debtors may tell you that their terms are sixty, ninety, or even one twenty days, but you don’t have to do this if you believe thirty days is a reasonable period to claim your payments for goods delivered or services offered.

  • What is required of an invoice NZ?

Your invoice has to show the following standard information.

  • The phrase “tax invoice.”
  • The name of your business.
  • The GST number of the seller.
  • The date of issue.
  • Is there a time limit on invoicing NZ?

Yes, there is.

The Limitation Act 1980 allows you to follow up on your invoices that date as far back as six years. While it is your right to invoice, we suggest you accompany your invoices with a letter apologizing for the delay in asking for your payments.

Think of it as fostering a healthy business relationship with your trading partners.

  • What is NZBN?

For starters, NZBN is an acronym for New Zealand Business Number.

NZBN is a unique number issued to all businesses in New Zealand. The primary purpose of this number is to help identify NZ businesses.

On top of that, the NZBN helps businesses and organizations connect and interact better via a shared information framework.

Businesses can build trusted relationships, see their supply chains, improve customer service, find access providers, and more with the shared info.

The ripple effect is that these organizations can work together in harmony and create new business opportunities.

  • How do I find my NZBN?

You can find your NZBN at the click of a button.

Visit the Companies Register official website NBN.govt.NZ and do a quick search.

Your NZBN links the info your trading partners ask for before doing business with you, such as trading name, address, etc.

  • How Do I Apply for NZBN?

Here’s a list of what you’ll need to apply for your NZBN?

  • Your IRD number and proof of identity if you’re a sole trader.
  • For a partnership, you will need your IRD number, partner’s details, and proof of collaboration.
  • You’ll then log into your RealMe® account (you can create one if you’re a new user) and enter the details above. The system will generate your NZBN automatically.

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