An organisation's requirement to ‘hold’ business records now not only extends to customers but also to suppliers as well. Taxable supply information will enable organisations a greater degree of flexibility in the form and type of taxable supply information that they provided to customers and receive from suppliers. This will allow organisations to collate taxable supply information such as customer name, physical or mailing address, email address, phone number, website and/or NZBN, and store them in formats such as:
- Customer and supplier master databases; and/or
- Customer and supplier onboarding documentation; and/or
- Supply or other contractual agreements with customers and suppliers.
Provided this information is held by the organisation, when a taxable supply is made or received, only supply particulars that change, such as a description of goods, consideration and GST inclusive or exclusive need to be disclosed. As taxable supply information does not have a prescribed format, this gives organisations the flexibility to issue the invoice particulars through a variety of mediums such as a physical invoice, a data file, e-Invoicing, or an upload to an app.
Organisations may choose to maintain the ‘status quo’ on the issuance of tax invoices, which is entirely acceptable post-1 April 2023, however, key suppliers may move to the new taxable supply information requirements, so organisations need to prepare accounts payable systems to ‘deal’ with new types of taxable supply information that won’t look like a traditional tax invoice.