On 9 October 2025, the New Zealand Government announced changes to the Government Procurement Rules, requiring large suppliers to send e-invoices when contracting with government agencies. Though not legally mandated, non-compliance may hinder securing government contracts.

From 1 January 2027, all government agencies will require large suppliers—those with revenue exceeding NZ$33 million over the previous two years—to issue e-invoices for domestic transactions. This promotes e-invoicing adoption for efficiency and transparency. The threshold excludes international suppliers and foreign currency transactions.

2. What Defines a “Large Supplier” in the Context of the New Procurement Rules

A “large supplier” is defined by total revenue over the previous two accounting periods, including subsidiaries, exceeding NZ$33 million.

This applies only to domestic trade invoices in New Zealand dollars for transactions within New Zealand, excluding international suppliers and cross-border invoicing.

2.1 Who is Exempt

• Suppliers with revenues under NZ$33 million
• International suppliers
• Cross-border transactions in foreign currencies

3. Timeline and Phased Implementation of the New e-Invoicing Requirement

The rule takes effect on 1 January 2027, but businesses should prepare now for procurement cycles. The Government will identify affected suppliers via procurement records and financial disclosures, communicating requirements in advance.

Non-compliance by 2027 may exclude suppliers from future contracts.

From 1 January 2026, agencies must pay 95% of domestic trade e-invoices within five business days. Non-e-invoices reduce chances of securing government business.

4. Main Differences in Domestic and International Scope

The rules apply strictly to domestic transactions in New Zealand dollars within New Zealand, excluding international suppliers and cross-border transactions, which follow existing practices.

This domestic focus aims to automate and simplify invoicing for large local suppliers dealing with government agencies.

5. How Government Agencies Will Implement e-Invoicing Requirements

In 2026, agencies will identify large suppliers using procurement records and financial disclosures. Procurement documents (e.g., RFPs/RFTs) will require confirmation of large supplier status and e-invoice readiness.

From 1 January 2027, large suppliers must send e-invoices when contracting. The goal is full public sector integration, requiring suppliers to adopt compatible e-invoicing solutions and integrate with ERP/invoicing software.

6. What e-Invoice Readiness Means for Suppliers

Suppliers must send Peppol-compliant e-invoices, as New Zealand uses the Peppol network for global interoperability.

This includes:

• Adopting Peppol e-invoicing technology via certified Access Points or ERP systems.
• Validating invoices against Peppol PINT A-NZ standard (New Zealand's version of European EN 16931).
• Preparing to receive e-invoices for full digital integration.

7. e-Invoicing and the Prompt Payment Rule

The prompt payment rule states:

• From 1 January 2026, pay 95% of domestic trade e-invoices within 5 business days.
• Standard (non-e) invoices within 10 business days.

This incentivizes e-invoicing for faster payments, requiring suppliers to implement systems for faster invoicing and payment tracking.

8. Action Steps for Suppliers to Prepare

Suppliers should plan for the 1 January 2027 deadline by:

• Evaluating size status: Confirm if revenue exceeds NZ$33 million threshold.
• Choosing a Peppol-compliant solution: Ensure software supports sending/receiving Peppol e-invoices; integrate with Access Points if needed.
• Ensuring data compliance: Align invoicing templates with Peppol PINT A-NZ standards and NZ government requirements for fields/formats.
• Testing ahead: Participate in 2026 testing with agencies for smooth onboarding.
• Training & documentation: Train teams on best practices, update contracts for e-invoice requirements, and document readiness.

Conclusion: The Path Forward

As New Zealand advances e-invoicing, large suppliers must prepare for the 1 January 2027 domestic transaction requirement using Peppol-compliant solutions. Early adoption ensures compliance, operational efficiency, and faster payments under prompt-payment rules.