New Zealand is expanding its mandatory business-to-government(B2G) e-invoicing requirements starting January 1, 2027. The change in e-invoicing rules is particularly relevant for large businesses that supply government agencies or plan to compete for government contracts. These suppliers will need to ensure that their invoicing systems and processes can generate and send compliant e-invoices before the new requirements take effect.

New B2G E-invoicing Requirements

Starting January 1, 2027, large suppliers must issue e-invoices when doing business with government agencies that process more than 2,000 domestic trade invoices per year. Large suppliers are companies whose combined total assets, and those of their subsidiaries, exceed NZD 66 million (around USD 37.6 million) at the balance date of each of the two preceding accounting periods. Alternatively, the revenue test is met when their combined total revenue exceeds NZD 33 million (around USD 18.8 million) in each of the two preceding accounting periods.

The mandate applies primarily to domestic trade invoices, invoices for goods or services supplied within New Zealand by a New Zealand-based business, where the transaction is in NZD. Certain transactions are excluded, such as some cross-border supplies, foreign-currency invoices, and invoices from suppliers below the large-supplier threshold. 

For e-invoice exchange, New Zealand has adopted the PEPPOL framework, which enables suppliers and government agencies to exchange structured e-invoices directly between their accounting systems through a secure network.

Compliance Steps

Large suppliers should begin preparing for the new e-invoicing requirements well before the implementation date. Businesses should first determine whether they meet the large supplier criteria, then assess their existing invoicing processes and identify any changes needed to support PEPPOL-based e-invoicing when dealing with government agencies.

Early preparation can help businesses address technology, process, and compliance requirements before the mandate takes effect. Suppliers that expect to be affected should therefore use the period before 2027 to assess their readiness and plan the transition to e-invoicing for B2G transactions.