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What eInvoicing means for government contracts

Part of: Procurement news Syndicated ICT Services

eInvoicing continues to be adopted across New Zealand with many businesses and the wider government sector progressively becoming enabled to send and receive eInvoices.

Central government agencies were tasked to implement receive eInvoicing capability by 31 March 2022. Sixteen government agencies now have this capability, with the remaining adopting the capability over the next 12 months.

Government entities' New Zealand Business Numbers and eInvoicing status - eInvoicing Pūtea Tāhiko

As well as government, there are also more than 6,000 businesses registered to receive eInvoices and growing every month.

Central government have also been tasked with achieving eInvoice volumes targets; specifically:

  • 10% of business to central government invoices are eInvoices by 1 July 2023, increasing to 90% by July 2026.

This means that government will require their suppliers to send eInvoices instead of PDFs. It will be the preference to start with but over time it will become the ONLY way government will accept invoices.

Ministry of Business, Innovation and Employment’s contracts are progressively being updated to include eInvoicing as a preference. When your organisation implements eInvoicing receive capability we recommend you also add eInvoicing as a preference to your procurement documents – contracts, RFPs (broader outcomes, assessment criteria etc).

Here is some suggested wording:

The service provider must provide a fully itemised valid GST invoice to the Ministry for all charges due in the manner set out in the details. The Ministry’s preference is that invoices are sent to the Ministry as an eInvoice. If that is not practicable, the invoice must be sent directly to the Ministry in PDF format via email to <email address>. The invoice must:

  1. Include attention to the relevant <agency name> manager,
  2. Etc

For more information about eInvoicing go to eInvoicing Pūtea Tāhiko.