InvioWhat is a Sole Trader Invoice?
A sole trader invoice is a bill you send to clients for goods or services provided. As a sole trader (self-employed person) in New Zealand, your invoice is how you officially request payment and create a record for tax purposes. New to invoicing? Read our complete step-by-step guide to invoicing as a sole trader.
If you're GST registered (turnover over $60,000/year), your invoice becomes a "tax invoice" and must include specific details required by the IRD, including your GST number and the GST amount.
Pro Tip: Ensure your invoices are legally valid. Check the 2026 Taxable Supply Information rules to avoid payment delays.
Quick Tip
Even if you're not GST registered, keeping proper invoices helps you track income and claim legitimate business expenses at tax time.
What to Include on Your Sole Trader Invoice
Your Business Details
- Trading name or your name
- Business address
- Contact details (phone, email)
- GST number (if registered)
Client Details
- Client name or business name
- Address (required for invoices $1,000+)
- Email for delivery
Invoice Details
- Unique invoice number
- Invoice date
- Due date
- Payment terms
Line Items & Totals
- Description of work/goods
- Quantity and rate
- Subtotal (excl. GST)
- GST amount (15%)
- Total (incl. GST)
Frequently Asked Questions
Do sole traders need to charge GST in NZ?
You must register for GST if your turnover exceeds $60,000 in any 12-month period. Once registered, you charge 15% GST on all taxable supplies. If you're under the threshold, GST registration is optional but can be beneficial if you have significant business expenses.
What's the difference between an invoice and a tax invoice?
A tax invoice is a GST-compliant invoice that includes your GST number and shows the GST component. Regular invoices don't need these details if you're not GST registered. Both are valid for requesting payment, but only tax invoices allow clients to claim GST credits.
How soon should I send an invoice?
Send your invoice as soon as the work is completed or goods are delivered. Prompt invoicing improves cash flow and looks professional. With Invio, you can create and send invoices from your phone while still on the job site.
What payment terms should sole traders use?
Common payment terms for sole traders are 7 days, 14 days, or "Due on Receipt". Shorter terms (7 days) typically result in faster payment. For larger jobs, consider requesting a deposit upfront and balance on completion.