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Where both parties agree, any GST registered buyer purchasing from a GST registered seller can provide buyer-created taxable supply information. You do not need our approval.

In the following situations, you may want to use buyer-created taxable supply information.

When the buyer determines the price

Buyer-created taxable supply information is useful where the buyer is in a better position than the seller to determine the price of the goods or services.

For example, an abattoir buys sheep from a farmer. The abattoir weighs, slaughters and prices the sheep. It also determines other costs, such as levies.

The abattoir is in a better position than the farmer to provide taxable supply information.

When the buyer wants to standardise taxable supply information

Buyer-created taxable supply information is useful for buyers who buy the same goods or services from many sellers. For example, a potato chip producer buys potatoes from many growers.

The producer is able to standardise their invoicing system using buyer-created taxable supply information.

Rules for buyer-created taxable supply information

Buyer-created taxable supply information must show:

  • standard taxable supply information
  • the buyer and seller’s GST numbers
  • GST added to the gross supply of goods or services.

Buyer-created taxable supply information can only be used if the buyer and the seller:

  • are GST-registered
  • agree only the buyer will provide the taxable supply information
  • record the reasons for agreeing to buyer-created taxable supply information (if the agreement is not part of the normal terms of business between the buyer and seller)
  • keep a copy of the taxable supply information.

Agreement between buyer and seller may be invalidated

We may invalidate the agreement before a supply because the buyer and seller have:

  • not complied with the agreement, or
  • not recorded the reasons for the agreement where it is not part of their normal terms of business.

Existing arrangements can continue

Any buyer-created tax invoice arrangement approved by Inland Revenue before 1 April 2023 can continue to be used as taxable supply information after this date.

Last updated: 01 Apr 2023
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