Overview of the government's plans regarding structured Peppol e-invoices by 2026.
The New Zealand government plans to expand the number of government agencies required to both receive and issue structured Peppol e-invoices by 2026. To facilitate this transition for businesses, a commitment will be made to ensure quicker settlement of all invoices.
In collaboration with Australia, New Zealand has embraced the Peppol PINT standard for e-invoicing.
On November 5, 2024, Economic Development Minister Hon Melissa Lee and Small Business Minister Hon Andrew Bayly announced a significant reform to Rule 51 within the Government Procurement Rules. This update facilitates the transition to a digitally integrated government procurement process.
All agencies, including ACC, Waka Kotahi, Health NZ, and NZ Police, must possess the ability to issue and receive e-Invoices in accordance with the Peppol PINT standard developed in collaboration with Australia. Furthermore, these organizations will be mandated to settle 95% of domestic trade e-Invoices within a maximum of five business days, thereby improving cash flow predictability for businesses in New Zealand, especially small and medium-sized enterprises (SMEs).
The update to the procurement regulations will be implemented in two distinct phases:
This reform aligns with the ongoing commitments of New Zealand’s public sector to improve payment processes, thereby establishing a more consistent and transparent framework for financial transactions among government entities.
As New Zealand embarks on this transition, the government will engage in discussions with businesses regarding the possibility of mandating certain government suppliers to implement e-Invoicing within procurement standards. These consultations, anticipated to be completed by February 2025, may influence the framework for adoption and promote increased e-Invoicing utilization among enterprises collaborating with the public sector.
To facilitate this transition, the Ministry of Business, Innovation, and Employment (MBIE) has made available a directory of qualifying public agencies, assisting businesses in aligning their invoicing practices with the new requirements.
KGT is a SAP partner for PE services and SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us on the SAP finder
KGT is a consultancy firm specializing in SAP and Tax. As an 'SAP Build partner', SAP has granted us the namespace 'KGT.' We provide global tax solutions for companies that use SAP.
As a trusted partner 'SAP partner for PE Services', KGT is uniquely positioned to configure SAP's Document Reporting and Compliance (DRC) solutions. With SAP DRC, businesses can configure, generate, analyze, and electronically submit e-invoices, e-documents and statutory reports, including those related to indirect taxes like value-added tax. KGT, backed by its team of SAP-certified consultants, is adept at configuring SAP DRC to meet your tax and statutory reporting needs.
As a recognized leader and long-standing official 'SAP Build partner', KGT also specializes in developing SAP add-ons for VAT reporting, EC listing, e-invoicing, and SAF-T reporting. Our solutions support a company's tax control framework and include features such as Intrastat reporting, VAT number validation, and VAT data analytics. We offer comprehensive tax solutions that assist our clients throughout their entire tax lifecycle within SAP. Our services are trusted by reputable multinational companies across Europe and beyond.
When your SAP VAT determination logic needs rectification, KGT is committed to providing a thorough end-to-end solution to address and remediate any underlying issues. As an SAP tax consultancy firm, KGT offers best-practice recommendations and implements agreed-upon solutions directly within SAP.
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The content is provided solely for the purpose of enhancing knowledge on tax matters. It does not provide tax advice to any taxpayer because it does not take into account any specific taxpayer’s facts and circumstances.