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Introduction to New Zealand's E-Invoicing Initiative

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:

  • Phase One: Starting on January 1, 2025, around 135 government agencies will strive to process 90% of all domestic trade invoices within 10 business days.
  • Phase Two: By January 1, 2026, these agencies will enhance their efforts to ensure that 95% of invoices are settled within a five-day timeframe.

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.

How Can KGT Support You?

KGT has created an SAP-integrated e-invoicing add-on solution for New Zealand, featuring outbound and inbound functionalities to meet tax reporting requirements. This add-on includes a data extractor and a cockpit for generating periodic electronic invoices in the legal format and controls before submission. When SAP DRC launched New Zealand's e-invoicing solution as part of its e-document offerings, KGT emerged as a leading consultancy firm for SAP DRC and tax services. Recognized as an SAP DRC partner for New Zealand's e-invoicing services, KGT is one of SAP's recommended implementation partners for this solution. We provide comprehensive support, including installation, configuration, customization, and training, to help you maximize the long-term value of your SAP DRC investment.

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 at: https://partnerfinder.sap.com/profile/0001925409