Buyer-created taxable supply information

GST Dates

JAN 15

Your GST return and payment is due for the taxable period ending 30 November.
JAN 28

Your GST return and payment is due for the taxable period ending 31 December.
FEB 28

Your GST return and payment is due for the taxable period ending 31 January.

All GST dates

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.