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How to Invoice as a Sole Trader in NZ

A practical, step-by-step guide to creating professional invoices - whether you're GST registered or not. Updated for 2026.

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Everything on this page changes at $60,000.

In short: to invoice as a sole trader in NZ, send a dated invoice showing your name, what you did, the amount and how to pay. Add your GST number and the GST once you are registered, which is compulsory at $60,000 turnover over the last twelve months or the next twelve, not a tax year. Checked against IRD's GST guide (IR375, March 2026) on 26 October 2026.

Under $60,000

Not registered

  1. 01GST registration is optional - the choice is yours.
  2. 02Do not charge or show GST on any invoice.
  3. 03Skip the GST number and the GST lines - just show your total.

Over $60,000

Registration compulsory

  1. 01Register with IRD within 21 days of crossing the threshold.
  2. 02Charge 15% GST on your taxable sales.
  3. 03Show your GST number, and the GST as its own line or a statement that the total includes it.

What your invoice should carry

Fourteen fields, in four groups. The last group only applies once you are GST registered.

Your business details

  • Trading name or legal name
  • Physical or postal address
  • Phone number and email
  • GST number, if you are registered

Invoice identifiers

  • Invoice number, sequential for your records
  • Invoice date
  • Payment due date
  • Bank account for payment

The work you did

  • Description of the work - specific enough to identify it
  • Quantity and rate, on their own line
  • Line total for each item
  • Date the work was completed

GST and buyer details

  • The GST at 15%, as its own line or a statement that the total includes it - only once you are registered
  • Buyer's name and one identifying detail (address, phone number, email address, trading name, NZBN, or website) - only if the buyer is GST registered, for invoices over $1,000

For invoices of more than $1,000, if the buyer is GST registered you also need their name plus one identifying detail - address, phone number, email address, trading name, NZBN, or website. That one line - the fourth group above - is the field people most often get wrong.

Not GST-registered yet?
If your turnover is under $60,000/year you do not have to register for GST. Leave out the GST number and GST lines - just show your total. Once you cross the threshold, you must apply to register within 21 days (Goods and Services Tax Act 1985, section 51). Check the full NZ invoice requirements guide if you are unsure.

Creating your first sole trader invoice

Follow these steps for a professional invoice that meets IRD requirements, GST registered or not.

1

Choose your invoice format

You have three options: invoicing software (recommended), a spreadsheet template, or a paper-based system. Dedicated invoicing software for sole traders handles saved clients, numbering, GST calculations, and payment follow-up more cleanly than a one-off template. Tip: even if you start with a template, switch to software early - it saves hours at tax time when you need to report income to the IRD.

2

Add your business details

Put your trading name or legal name at the top, with an address, phone number and email so the customer can reach you and pay you. Once you are GST registered, IRD also expects your GST number on the invoice.

3

Add client details

Include the client's name and business name. If the buyer is GST registered, invoices of more than $1,000 need their name plus one identifying detail - address, phone number, email address, trading name, NZBN, or website. See the full NZ tax invoice requirements for details.

4

Describe the work or products

List each service or product as a separate line item: a clear description of the goods or services, quantity and unit rate, the line total for each item, and the date the work was completed.

5

Calculate GST, if registered

If you're GST registered, you must add 15% GST and show it clearly on the invoice. If you're not GST registered, do not charge GST - your turnover has to reach $60,000 in twelve months before registration is even mandatory, and charging GST without being registered is illegal in NZ.

6

Set payment terms and send

Clearly state when and how you expect payment. Common terms in NZ: due on receipt for immediate payment, due in 7 days for small jobs, or due in 14-20 days as the industry standard. Include your bank account number for direct deposit - the most common payment method in NZ.

5 common invoicing mistakes to avoid

These mistakes slow payment, create disputes, or put you offside with IRD. Easy to fix once you know them.

NO

Charging GST when not registered

e.g. "Subtotal $500 + GST $75" from an unregistered sole trader

YES

If you're not GST registered, adding GST to your invoice is illegal. Your client cannot claim it, and the IRD may penalise you.

NO

No invoice number

e.g. An invoice with no reference at all

YES

IRD does not require one, but give every invoice a unique, sequential number anyway. Without it, matching a payment to the right job and resolving a dispute both get harder.

NO

Vague descriptions

e.g. "Services rendered - $450"

YES

Describe what you did clearly - this protects you in disputes and satisfies IRD requirements.

NO

No payment terms

e.g. An invoice with a total but no due date

YES

Without clear payment terms, clients have no deadline. Always state when payment is due and your bank details for direct deposit.

NO

Not keeping copies

e.g. PDFs emailed out and never backed up

YES

The IRD requires you to keep records for 7 years. If you are emailing invoices as PDFs, make sure you have backups. Invoicing software solves this automatically.

GST registered vs non-GST invoices

The biggest source of confusion for NZ sole traders. Here is exactly what changes depending on your GST status.

FeatureGST numberGST RegisteredRequiredNot GST RegisteredNot applicable
FeatureGST amountGST RegisteredMust be shown (15%)Not GST RegisteredMust NOT be charged
FeaturePrice displayGST RegisteredGST-inclusive or show GST separatelyNot GST RegisteredTotal only (no GST breakdown)
FeatureClient can claim GST credit?GST RegisteredYesNot GST RegisteredNo
FeatureTurnover thresholdGST Registered$60,000 or more in twelve months (mandatory)Not GST RegisteredUnder $60,000 in twelve months

One thing that does not change: since 1 April 2023, an invoice is not required to say "Tax Invoice" - taxable supply information rules replaced the old prescribed heading, so what matters is that the GST details are present, not the words at the top of the page.

Not sure which rules apply to you? Read the full Sole trader tax guide for more on GST registration thresholds.

Invoice vs quote: when to use each

Two different documents, sent at two different points in the job.

After the job

Invoice

Sent after the work is done - a request for payment, and a legal document. Legally binding, includes payment terms, and required for tax records.

Before the job

Quote

Sent before the work begins - a non-binding estimate, not a demand for payment. Helps win the job, and can be converted to an invoice once accepted.

The full comparison, with what goes on each and how a deposit carries across, is in quote vs invoice.

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Sole Trader Invoicing FAQs

Common questions from NZ sole traders about invoicing, GST, and record-keeping.

How late can you invoice someone?
IRD's GST guide sets no deadline for sending a sole trader invoice, so the practical rule is to invoice as soon as the work is done: late invoices are paid late. If you are GST registered and a GST-registered buyer asks for taxable supply information on a sale over $200, you must provide it within 28 days of the request (IRD GST guide IR375, checked 26 October 2026). Check payment terms in your contract too.
What is required on an invoice in NZ?
Your name or trade name, the date, a description of what you supplied and the amount. Add your GST number and the GST (or a statement that the total includes GST) once the sale is more than $200 and you are registered. The full band-by-band list is in the NZ tax invoice requirements.
Do I need to charge GST on my invoices as a sole trader?
Only once your turnover reaches $60,000 in the last twelve months, or you expect it to in the next twelve - at that point GST registration is mandatory. Below that threshold, it's optional. If not registered, do not charge or show GST on your invoices.
What is the difference between an invoice and a tax invoice?
A regular invoice is a request for payment. Since 1 April 2023, what IRD calls a tax invoice is really taxable supply information - a set of details a GST-registered supplier must hold and pass on, not a specific heading the document has to carry. See the full tax invoice requirements.
Can I handwrite my invoices?
Legally, yes. Practically, no. Handwritten invoices are difficult to track, look unprofessional, and create problems at tax time. Free tools like Invio's invoice generator take less time than handwriting and keep records automatically.
How long should I keep copies of my invoices?
The IRD requires you to keep all business records - including invoices - for a minimum of 7 years. Digital invoicing software stores these automatically and makes them searchable.
Do I need to display my Tax File Number (TFN) on invoices as a sole trader in NZ?
No - and the term "Tax File Number" actually comes from the Australian tax system. In New Zealand, individuals and sole traders have an IRD number, not a TFN.

Whether you need to show it on an invoice depends on your GST status:
  • Not GST registered: Do not put your IRD number on invoices. It is not required, and your IRD number is sensitive personal information - keep it off client-facing documents.
  • GST registered: You must show your GST number on a tax invoice. For sole traders, the GST number is the same digits as your IRD number, but label it "GST Number" - not as a personal tax ID.

This is general information only - check ird.govt.nz for guidance specific to your situation.