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.
