Taxable Supply Information NZ: The Complete 2026/27 Guide
Taxable supply information (TSI) is the set of records NZ businesses must hold and provide to support GST returns — replacing the old “tax invoice” requirement from 1 April 2023. Three value thresholds apply: supplies $200 or under (minimal info), $200–$1,000 (add seller GST number + GST amounts), and over $1,000 (add buyer name + identifier). Records must be kept for 7 tax years. The 28-day rule requires providing TSI to GST-registered buyers within 28 days of request for supplies over $200.
All rules, thresholds and examples in this guide are verified against Inland Revenue New Zealand (IRD) taxable supply information guidance, GST Guide IR375, and the Goods and Services Tax Act 1985. Last reviewed September 2026. This guide covers every scenario the IRD documentation addresses plus practical industry-specific examples and real invoice templates your competitor pages omit.
From 1 April 2023, Inland Revenue New Zealand quietly but fundamentally changed how GST paperwork works. The familiar tax invoice requirement was replaced by a more flexible framework built around taxable supply information (TSI) — a concept that many NZ business owners, accountants, and contractors are still getting to grips with three years on. This comprehensive guide covers every aspect of the TSI rules for 2026/27: what changed, what it means for your invoicing, real worked examples across all three value thresholds, industry-specific scenarios your competitors miss entirely, practical invoice templates, common mistakes and their consequences, and how TSI interacts with your GST return filing obligations.
Whether you run a small trade business, operate as a contractor, manage a retail shop, import goods, or process high-volume supplier invoices in a corporate accounts payable team — the TSI framework affects you differently. This guide addresses all of those scenarios with direct references to the IRD guidance, GST Guide IR375, and the Goods and Services Tax Act 1985.
What Is Taxable Supply Information? — Definition and Legal Basis
Taxable supply information is defined under the Goods and Services Tax Act 1985 (as amended by the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023) as the minimum set of records that a supplier must hold — and in most cases provide to the buyer — to support the figures in a GST return. The shift from tax invoices to TSI was not just a rename. The old system required a specific physical document meeting precise formatting standards. The new system is outcome-focused: IRD cares that the right information exists somewhere — in invoices, contracts, bank statements, supplier agreements, accounting software data, or any combination — not that it sits in a single document with a particular heading.
Legal Reference: The taxable supply information rules are set out in sections 19B to 19I of the Goods and Services Tax Act 1985, as inserted by the Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Act 2023. The commencement date for these provisions was 1 April 2023.
What Did Not Change
It is important to be clear about scope. The following did NOT change on 1 April 2023:
- The definition of a taxable supply — still any supply of goods or services in NZ that attracts GST
- The 15% GST rate — unchanged since 1 July 2010
- The $60,000 registration threshold — unchanged
- The obligation to collect and remit GST on taxable supplies
- The input tax credit entitlement for GST-registered buyers
- Filing frequencies and GST return obligations
What Changed on 1 April 2023
What Changed on 1 April 2023
| Old Term (pre-1 April 2023) | New Term (from 1 April 2023) | Key Difference |
| Tax invoice | Taxable supply information | No single document required; info can span multiple records |
| Debit note / Credit note | Supply correction information | Same function, new name, clearer rules |
| Buyer created tax invoice | Buyer created taxable supply information | No IRD approval needed for new arrangements |
| $50 reduced information threshold | $200 low-value threshold | Threshold increased 4x — significant for small transactions |
Key Insight: The $200 threshold increase from the old $50 reduced-information rule is one of the most underreported changes. It means the vast majority of small retail, hospitality, and trade transactions under $200 now require significantly less documentation than before — reducing compliance burden for small businesses substantially.
The Three Value Thresholds — Complete Requirements
TSI requirements are tiered by the value of the supply including GST. The threshold that applies is determined by the total consideration for the supply — not the GST-exclusive amount. Here is the complete breakdown for each tier:
Tier 1: Supplies of $200 or Less (Including GST)
For the smallest transactions, IRD has dramatically simplified requirements. You are not required to provide TSI to the buyer at all at this level — though both parties must still keep their own records.
What the supplier must keep (but does not need to provide to buyer):
- Supplier’s name or trade name
- Date of the invoice, OR the time of supply if no invoice is issued
- Description of the goods or services supplied
- The consideration (total amount paid or payable) for the supply
Practical Note: At this tier you do NOT need: • The supplier’s GST number • Any GST amount breakdown • Any buyer details whatsoever This means a café receipt, hardware store docket, or courier charge under $200 satisfies TSI requirements even without a GST number — as long as the four required fields are present.
Tier 2: Supplies Over $200 and Up to $1,000 (Including GST)
Everything from Tier 1, plus two additional requirements that catch many businesses out:
- Supplier’s GST registration number
- GST payment particulars — either: (a) the GST-exclusive amount, the GST amount, AND the GST-inclusive amount; OR (b) the GST-inclusive amount plus a statement that GST is included, where the standard 15% rate applies to all items on the document
Note: buyer details are still not required at this level. However, you must provide this TSI to a GST-registered buyer within 28 days of their request, or by an agreed date.
Most Common Mistake at Tier 2: Omitting the GST number. Many small businesses send invoices with just a dollar total and a note ‘includes GST’ — but without their GST number, the document does not meet TSI requirements for Tier 2 supplies. The buyer cannot claim an input tax credit on that invoice. IRD audits regularly identify this gap.
Tier 3: Supplies Over $1,000 (Including GST)
Everything from Tiers 1 and 2, plus mandatory buyer identification when the buyer is GST-registered:
- Buyer’s name or trade name
- At least one of the following buyer identifiers: physical or postal address; phone number; email address; trading name (if different from legal name); New Zealand Business Number (NZBN); website URL
For Tier 3 supplies where the buyer is NOT GST-registered, buyer identification is not required.
| Requirement | Tier 1 (≤$200) | Tier 2 ($200–$1,000) | Tier 3 (>$1,000) | Provide to buyer? |
| Supplier name/trade name | ✅ | ✅ | ✅ | Tier 1: No |
| Date or time of supply | ✅ | ✅ | ✅ | Tiers 2&3: Within 28 days of request |
| Description of goods/services | ✅ | ✅ | ✅ | |
| Consideration (total amount) | ✅ | ✅ | ✅ | |
| Supplier GST number | ❌ | ✅ | ✅ | |
| GST amount breakdown | ❌ | ✅ | ✅ | |
| Buyer name + identifier | ❌ | ❌ | ✅ (if buyer GST-registered) |
The 28-Day Rule — Full Explanation and Practical Implications
The 28-day rule is one of the most operationally important aspects of the TSI framework and is frequently misunderstood. Here is the complete picture:
When the 28-Day Rule Applies
- Only for supplies over $200 (Tier 2 and Tier 3)
- Only when the buyer is GST-registered
- Triggered by a request from the buyer for the TSI
- Alternatively, both parties can agree to a different provision date
What the 28-Day Rule Requires
You must provide TSI within 28 calendar days of the buyer’s request. The clock starts from the date the request is received — not the date of the original supply.
Providing TSI More Than Once
IRD states that TSI for a specific supply should generally only be provided once. If the buyer loses their copy, you can provide another — you do not need to mark it as a duplicate or copy. However, you should not routinely issue multiple TSI documents for the same supply as this can cause confusion in GST returns.
What Counts as a Valid Request
IRD guidance does not specify a format for requests. An email from a buyer’s accounts payable team asking for an invoice, a phone call followed by written confirmation, or a formal written request all constitute valid triggers for the 28-day clock. Best practice is to acknowledge requests in writing and document your response date.
Real-World Scenario: A building contractor completes a $15,000 renovation on 15 July 2026. They invoice immediately but the client’s accounts payable team cannot locate the invoice and formally requests it on 20 August 2026. The 28-day clock runs from 20 August — the contractor must provide a compliant TSI document by 17 September 2026. Failure to do so is a breach of the GST Act.
Industry-Specific TSI Scenarios — What Other Guides Miss
Most guides cover only the general TSI rules. Here is how they apply across the specific industries and scenarios where NZ businesses most commonly get it wrong:
Construction and Trades
Construction invoices frequently cross all three TSI tiers in the same project. A tradesperson might raise a $180 invoice for materials (Tier 1), a $650 charge for a half-day’s labour (Tier 2), and a $8,500 invoice for completed work (Tier 3) — each requiring different documentation.
Construction-Specific Risk: Progress payment invoices on large projects often lack buyer identification despite exceeding $1,000. A builder invoicing a property developer for $45,000 must include the developer’s name and at least one identifier. Failure means the developer cannot claim the GST input credit — creating a dispute risk.
Practical fix: Add a client detail capture step to your job setup workflow. Collect legal entity name, GST number, and email address at project commencement — not after the invoice is raised.
Hospitality and Retail
Cafés, restaurants and retailers will find the new $200 Tier 1 threshold significantly reduces their documentation burden. The vast majority of individual retail transactions fall under $200, meaning a basic receipt with trader name, date, description, and amount is fully compliant TSI.
However, corporate accounts opening credit accounts with hospitality venues can trigger Tier 3 requirements on monthly statements. A restaurant providing a monthly consolidated invoice to a corporate client for $1,200 of meals must include buyer identification.
Professional Services — Lawyers, Accountants, Consultants
Professional service firms almost always issue Tier 3 invoices. The buyer identification requirement is straightforward when billing established clients but creates issues for:
- New engagements where client details have not been formally captured
- Billing trusts or partnerships where the ‘buyer’ identity is unclear
- Overseas clients where NZBN or NZ address may not be available
For overseas clients: IRD guidance indicates that for exported services (zero-rated), the standard TSI requirements still apply. For buyer identification purposes, a foreign email address or website URL satisfies the identifier requirement.
eCommerce and Online Businesses
Online retailers face a unique challenge: automated order confirmation emails must meet TSI requirements for orders over $200. Most eCommerce platforms generate these automatically — but the default templates often omit the seller’s GST number or fail to show the GST amount separately.
eCommerce Compliance Checklist — Your order confirmation email for purchases over $200 must include: ✅ Your business name ✅ Your GST number ✅ Date of the order ✅ Description of goods ✅ GST-exclusive amount OR GST-inclusive amount with ‘GST included’ statement ✅ Total amount For orders over $1,000 from GST-registered business buyers, you also need the buyer’s name and one identifier.
Importers
Imported goods are subject to GST at the border under section 12 of the GST Act. When goods arrive in NZ, Customs collects GST on the customs value of the goods plus any applicable duty. The documentation for this border-collected GST is a Customs entry (SAD — Single Administrative Document), not a TSI from the overseas supplier.
However, importers also need TSI for any NZ-based supply costs — freight forwarder fees, customs broker fees, warehousing — which follow the standard three-tier rules.
Property Transactions
Property sales are among the most complex GST situations in NZ. Most sales of land and buildings between GST-registered parties are zero-rated. For zero-rated supplies, TSI requirements still apply — but the GST amount to record will be $0. The TSI for a zero-rated property sale must still include: supplier name, date, description of the property, consideration, supplier GST number, and for sales over $1,000 (which all property sales will be), buyer name and identifier. Additionally, you must retain documentation showing why the supply was zero-rated.
Invoice Templates — What a Compliant TSI Document Looks Like
While TSI no longer requires a single document, in practice most NZ businesses will continue to use invoices. Here is exactly what a compliant invoice looks like at each tier:
Tier 2 Compliant Invoice Template ($200–$1,000)
INVOICE ───────────────────────────────────────── From: [Your Business Name or Trade Name] [Address — optional at Tier 2] GST No: [Your GST Number] ← REQUIRED at Tier 2 Date: [Invoice Date] Invoice: [Invoice Number — recommended, not required] ───────────────────────────────────────── Description: [Clear description of goods/services] Amount (excl. GST): $XXX.XX GST (15%): $XX.XX Total (incl. GST): $XXX.XX ───────────────────────────────────────── [Note: Buyer name/address NOT required at Tier 2] [Alternative GST statement: ‘Total $XXX includes GST’]
Tier 3 Compliant Invoice Template (Over $1,000)
INVOICE ───────────────────────────────────────── From: [Your Business Name or Trade Name] [Your Address] GST No: [Your GST Number] ← REQUIRED Date: [Invoice Date] Invoice: [Invoice Number] ───────────────────────────────────────── To: [Buyer Legal Name or Trade Name] ← REQUIRED [At least ONE of: Address / Phone / Email / Trading Name / NZBN / URL] ← REQUIRED GST No: [Buyer GST Number — recommended, not required] ───────────────────────────────────────── Description: [Clear description of goods/services] Amount (excl. GST): $X,XXX.XX GST (15%): $XXX.XX Total (incl. GST): $X,XXX.XX ───────────────────────────────────────── Payment due: [Date or terms] Bank account: [For direct credit payments]
Remember: You do not need to use the words ‘Tax Invoice’ on your document. IRD does not require this heading from 1 April 2023. However, you can continue using it — many accounting systems and buyer AP teams still expect it, and it remains fully valid.
Supply Correction Information — The New Credit and Debit Notes
Supply correction information (SCI) replaced both credit notes and debit notes from 1 April 2023. The name changed but the function is identical — it corrects errors or adjustments to earlier TSI.
When You Must Issue Supply Correction Information
- Cancelled orders or supplies
- Goods returned by the buyer
- Price changes after the original TSI was issued
- Undelivered goods or services
- Errors in description, seller details, buyer details, or dates
- GST charged at the wrong rate
- Incorrect GST amount on the original TSI
When You Do NOT Need Supply Correction Information
- Discounts already agreed in writing before the original TSI was issued
- Rebates set out in the original TSI itself
- Volume discounts on an ongoing supplier agreement where the adjustment mechanism is already documented
What Must Be in Supply Correction Information
- Seller’s name (or trade name) and GST number
- Date the correction was provided
- Details identifying the original TSI (invoice number, date, or other reference)
- The correction itself — including any correction to the GST amount
Include the correction in the GST return for the period in which the supply correction information was provided — not the period of the original supply, unless the error was in a previous return already filed.
Real-World Example — Supply Correction: Original TSI: Invoice #1042 dated 10 August 2026 for $5,750 (incl. GST $750) for marketing services. Error discovered: Services were only partially delivered — agreed price $4,025 (incl. GST $525). Supply correction information must show: • Seller name and GST number • Date: [correction date] • Reference: Invoice #1042, 10 August 2026 • Correction: Reduction of $1,725 (incl. GST $225) • New total: $4,025 (incl. GST $525)
Buyer Created Taxable Supply Information — Full Rules
Buyer created TSI allows a GST-registered buyer to generate the TSI document instead of the seller. From 1 April 2023, no IRD approval is required for new buyer created TSI arrangements — a significant simplification from the previous system.
When Buyer Created TSI Is Used
- Abattoirs pricing livestock after weighing — buyer sets the price
- Agricultural cooperatives purchasing from many small suppliers
- Large retailers with standardised supplier invoice formats
- Any situation where the buyer has more pricing information than the seller
Requirements for Buyer Created TSI
- Both parties must be GST-registered
- Both parties must agree that only the buyer will provide TSI for the arrangement
- The reason for the agreement must be recorded if it is not already reflected in the normal terms of trade
- Both parties must keep a copy
- The document must contain standard TSI fields plus BOTH parties’ GST numbers
- The document must show GST on the gross supply value
IRD can invalidate a buyer created TSI arrangement if parties fail to comply with requirements or fail to document their reasons where required. Pre-April 2023 IRD-approved arrangements can continue.
Agents, Employees, and Third-Party TSI
Agents Issuing TSI
A GST-registered agent can issue or receive TSI on behalf of a GST-registered principal. The agent’s name and GST number can appear on the TSI document. The agent must maintain records of the principal’s name, address, and GST number for each transaction. Importantly, the principal cannot also issue TSI for the same supply — only one set of TSI per supply.
Employee Purchases and Reimbursements
When an employee purchases goods or services on behalf of their employer, the employer can claim the GST input credit only when:
- The employer reimburses the exact cost paid by the employee — not an approximation or allowance
- The employer is GST-registered
- The TSI shows the employee’s name and address (not the employer’s, since the employee made the purchase)
Critical distinction: An allowance paid to cover expected expenses does not carry a GST claim — even if the employee spends it on something that would otherwise be claimable. Only reimbursements of exact documented costs qualify
Record Keeping — The 7-Year Rule and Electronic Records
All TSI, supply correction information, and supporting records must be retained for at least 7 tax years from the end of the tax year in which the transaction occurred. This is not 7 calendar years from the invoice date — it is 7 tax years from end of the year in which the supply was made.
Calculating Your Retention Period
Supply date: 15 September 2026 Tax year it falls in: 2026/27 (ends 31 March 2027) 7 tax years from end: 31 March 2034 Must keep records until: 31 March 2034 Supply date: 20 April 2026 Tax year it falls in: 2026/27 (starts 1 April 2026) 7 tax years from end: 31 March 2034 Must keep records until: 31 March 2034
Electronic Record Keeping Rules
- Electronic records are explicitly accepted by IRD and are treated equally to paper records
- Records must be in English or Te Reo Māori unless IRD approves another language
- Records stored offshore or in cloud systems may require IRD approval — check the specific requirements at ird.govt.nz
- Records must be legible and retrievable within a reasonable time if IRD requests them
- Backup and disaster recovery practices should ensure records are not lost during the 7-year period
Cloud Storage Note: If you use a cloud-based accounting system (Xero, MYOB, Figured, etc.) that stores data offshore, check whether your provider has IRD approval for offshore storage. Most major providers have sought and received this approval — but you should verify, not assume. IRD’s record keeping guidance is at ird.govt.nz/managing-my-tax/record-keeping.
How TSI Connects to Your GST Return — Filing Implications
TSI is not just an invoicing exercise — it directly affects what you can claim and declare on your GST return. Using the free NZ GST Calculator at NZPayeCalculator.nz helps you verify GST amounts before filing. Here is how TSI and GST returns interact:
Output Tax — Supplies You Make
You must declare GST on all taxable supplies you make in the return period. TSI is your evidence that a taxable supply occurred. If IRD audits and you cannot produce TSI for declared output tax, they may disallow credits or assess penalties.
Input Tax — Purchases You Claim
You can only claim input tax credits on purchases where you hold adequate TSI. This means:
- Tier 2 purchases over $200: you need the supplier’s GST number on the invoice before claiming
- Tier 3 purchases over $1,000: you need buyer identification on the TSI (your details as the buyer)
- Sub-$200 purchases: basic records sufficient, but GST number not required
Timing of Claims and Corrections
Claim input credits in the GST period in which you receive the TSI — not necessarily the period of the supply. If a supplier sends you a December invoice in January, claim it in the January period.
Supply correction information adjustments go in the period the correction is issued — not the period of the original supply.
Penalties for Non-Compliance — What IRD Can Do
Failure to maintain adequate TSI is not merely an administrative inconvenience — it carries real financial consequences:
| Non-Compliance | Potential IRD Response | Severity |
| Claiming GST without adequate TSI | Input credit disallowed + use of money interest | 🔴 High |
| Failing to provide TSI within 28 days | Shortfall penalty possible | 🟡 Medium |
| Missing GST number on Tier 2/3 invoices | Buyer’s input credit disallowed | 🟡 Medium |
| Missing buyer ID on Tier 3 invoices | Buyer’s input credit at risk | 🟡 Medium |
| Records not kept for 7 years | Penalty under Tax Administration Act 1994 | 🔴 High |
| Systematic TSI failures across returns | Full audit + reassessment + penalties up to 150% | 🔴 Very High |
IRD Audit Risk: GST audits in New Zealand are more common than many businesses realise. IRD’s data matching systems cross-reference GST returns with third-party data including banking information, property transactions, and customs data. Maintaining complete, compliant TSI is your primary defence in any audit. Estimate your late penalty exposure with the Late GST Penalty Calculator.
Complete Compliance Checklist — 2026/27
For All NZ Businesses
- Map your invoice templates to the three TSI tiers — update any templates missing GST numbers
- Capture GST numbers and buyer identifiers at client/supplier onboarding — not at invoice time
- Train accounts payable staff to accept compliant TSI that is not labelled ‘Tax Invoice’
- Set a policy for responding to TSI requests within 28 days — assign responsibility
- Rename credit note and debit note templates to ‘Supply Correction Information’ (optional but recommended)
- Verify your cloud accounting system has IRD approval for offshore record storage
- Set calendar reminders for the 7-year record retention period on each year’s records
For eCommerce Businesses
- Audit your automated order confirmation email for GST number and GST breakdown for orders over $200
- For orders over $1,000 from business buyers, implement a buyer detail capture workflow
- Check your refund/return process issues supply correction information not credit notes
For Importers
- Keep Customs SAD documents alongside NZ-based supply TSI for import transactions
Separate border-collected GST documentation from domestic supplier TSI in your records.
